Fashion eCommerce has a returns problem. A big one.

Every time a shopper clicks “buy now,” there’s a silent gamble in play: Will it actually fit? Will it be like the picture promised? Will it look good on me, not just on the model? When the answer is “no,” the cost is steep – financially and environmentally. In Europe, fashion return rates regularly hit 20–30%⁶. In the U.S., returns across retail totalled $890 billion in 2024, with clothing responsible for the lion’s share. Each return costs an average of 27% of the item’s original price⁴, and the environmental impact is equally significant, with up to 24 million metric tonnes of CO₂ emitted annually from reverse logistics². Some garments don’t even get a second chance, in Europe, up to 9% of returned clothes are destroyed each year.

The root problem is surprisingly simple: for shoppers, without the confidence that comes from seeing products on real people in real contexts, hesitation turns into abandonment. For brands, that hesitation is expensive.

Why the “Authenticity Gap” Drives Returns

Today’s shoppers trust what they can see for themselves. A product image on a white background might satisfy a search-driven customer who already knows exactly what they want, but it will not inspire confidence in someone still deciding. This is especially true in fashion, where the same item can look dramatically different depending on body shape, height, skin tone and styling.

The “authenticity gap” describes the disconnect between how a product appears online and how it looks and feels in real life. In fashion, this gap is amplified by:

• Sizing inconsistencies, even within the same brand.

• The rise of “bracketing”, buying multiple sizes or styles to try at home, with the intent to return most of them.

• Style mismatch, where products look different on the customer than expected, often due to idealised studio photography.

Recent headlines have shown how serious the challenge is. In June 2025, BBC News reported that ASOS closed some customer accounts for unusually high return rates⁵, a move that highlights the pressure all fashion retailers face in managing returns while protecting customer satisfaction and profitability. Industry-wide, many of these challenges stem from shoppers struggling with sizing confidence or uncertainty about how items will look in real life, areas that can be improved with clearer visualisation and fit guidance before purchase.

When shoppers cannot see what an item looks like in real life or what it looks like on a person, and in realistic contexts, they either don’t buy  or over-order “just in case”, which feeds the returns cycle.

Authentic Visual Commerce as the Solution

Authentic content such as User-generated content (UGC), influencer imagery and shoppable video bridge this gap by showing products in everyday contexts. These assets not only inspire but also give shoppers the proof points they need to commit. According to StoryStream data, shoppable UGC and video can lift conversion rates by up to 15% and increase average order value by up to 8%¹.

When shoppers trust what they see, they are more confident to buy, and less likely to return. AI-powered discovery tools are proving effective in lowering return rates by up to 30% in European tests². They do this by:

• Refining fit and style choices early through size prediction and personalised styling recommendations³.

• Reducing decision fatigue with conversational, visual product discovery.

• Enriching product catalogues so shoppers see relevant options instead of ill-fitting or off-style suggestions.

By combining AI’s personalisation power with authentic visual proof, brands can address the two biggest drivers of returns – uncertainty and mismatch – while also improving conversion and loyalty.

• AI Visual Stylist provides personalised “what to wear” recommendations, reducing decision fatigue and style mismatches.

• AI Shop the Look transforms lifestyle imagery into interactive, shoppable inspiration.

The Sustainability and Compliance Imperative

Returns are not just a profit drain. They have a measurable environmental impact:

• Waste – up to 9% of returned garments in Europe are destroyed each year².

• CO₂ emissions – millions of tonnes from unnecessary shipping and warehousing.

• Regulatory pressure – EU rules will ban the destruction of unsold or returned textiles by July 2026².

Brands that proactively reduce returns are better positioned to meet sustainability goals, comply with new legislation, and appeal to environmentally conscious shoppers.

Closing the Authenticity Gap: a Trust-Driven Growth Opportunity

Customer acquisition costs have risen more than 60% in five years¹. In that environment, improving conversion and lowering returns is one of the fastest, most cost-effective ways to boost profitability.

By making authenticity the centre of the eCommerce experience, brands can:

• Win attention with inspiring, relatable content.

• Build trust at the point of decision.

• Reduce costly and environmentally damaging returns.

StoryStream gives fashion brands the platform to make this happen, transforming static sites into social-style, AI-powered destinations that feel personal, inspiring, and real.

How StoryStream Can Help

StoryStream transforms static eCommercesites into immersive, social-style shopping experiences that bring authenticity to the forefront. Our platform makes it easy for fashion brands to:

• Source and curate content from customers, influencers and brand assets

• Turn UGC into shoppable experiences so shoppers can click directly from inspiration to purchase

• Deploy AI-powered stylists and “Shop the Look” features that show how items can be worn and styled in different ways

By integrating these experiences directly into the product discovery journey, brands can help shoppers imagine the product in their lives before they buy. This builds trust, drives higher conversion rates and can reduce returns by removing uncertainty up front.

References

1. StoryStream, internal data (2025)

2. StyleAI, “Sustainable Shopping: The Role of AI in Reducing Returns” (2025) https://medium.com/@styleai.me/sustainable-shopping-the-role-of-ai-in-reducing-returns-f7272f857ee9

3. Redo Team, “Returns in the Fashion Industry: Balancing Fit, Style, and Sustainability” (2025) https://www.getredo.com/en/blogs/returns-in-the-fashion-industry-balancing-fit-style-and-sustainability

4. SJ Hare, “The $890 Billion Problem for Retailers and Brands: Returns” TechStyle Edit (2025) https://medium.com/@techstyleedit/the-890-billion-problem-for-retailers-and-brands-returns-9a906343cc88

5. BBC News, “Asos bans shoppers for making too many returns” (25 June 2025) https://www.bbc.com/news/articles/cnvmj4e81nzo

6. MeteorSpace, “Latest eCommerce Return StatisticsYyou Need to Know” (14 January 2025) https://www.meteorspace.com/2025/01/14/latest-returns-statistics-that-may-surprise-you/