The Power of Online Shopping How AI is Revolutionizing Returns Management

<br><br>**The Power of Online Shopping How AI is Revolutionizing Returns Management**<br><br>In today's digital era, online shopping has become an integral part of our daily lives. With the rise of e-commerce, consumers have access to a vast array of products at their fingertips. However, this convenience comes with a significant challenge – returns management. According to a McKinsey study, up to 30 percent of fashion items bought online are sent back, resulting in substantial costs and profit margin erosion.<br><br>To address this issue, online shopping giants are turning to artificial intelligence (AI) to streamline their returns process. One such company is Fringuant, which has developed an AI-driven algorithm that uses customer selfies to provide sizing advice. By detecting a customer's age, gender, and height, the algorithm promises shoppers a better understanding of what size would fit them best.<br><br>Equipped with this information, consumers can avoid costly mistakes and reduce returns. For instance, if a shopper is unsure about their size, Fringuant's AI model will detect any doubts at the level of the hips for a pair of trousers or whether a jumper falls perfectly on the shoulder. This personalized approach has led to dramatic drops in returns among Maje, one of Fringuant's clients.<br><br>Another innovative solution comes from Swiss startup Fision, acquired by Zalando in 2020. By taking two photos of themselves with their phone while wearing tight-fitting clothes, customers can help avoid returns and ensure they receive the right size. Since July 2023, Zalando has adopted its own AI-driven sizing tool to further reduce returns.<br><br>**The Power of AI Preventing Returns**<br><br>Beyond sizing, e-commerce firms are also leveraging AI to prevent returns caused by shipping errors. At ID Logistics, an independent robot equipped with AI maps the warehouse premises to update stock according to what it sees. This process has reduced incorrect parcels by 90 percent in less than two years.<br><br>To further streamline their operations, online shopping giants are employing AI-powered robots to automate their stock counts. With the ability to process up to 30,000 pallets per night, these robots ensure that products are accurately accounted for, preventing preparation errors and returns.<br><br>**Conclusion The Future of Returns Management**<br><br>In conclusion, the power of AI in online shopping is undeniable. By using customer selfies, AI-driven sizing tools, and autonomous robots, e-commerce firms can significantly reduce returns and improve their bottom line. With traditional returns management processes floundering, these innovative solutions are poised to revolutionize the industry.<br><br>**Keywords** Artificial Intelligence (AI), Online Shopping, Returns Management, Sizing Advice, Robot Stock-Takers
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