Story perspectives
AI Revolutionizes Fashion Retail to Cut 15.8% Return Rates
4/5/2026
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Story summary
- Fashion retailers are adopting artificial intelligence to curb return rates, which reached 15.8% in 2025 and cost $849.9 billion.
- AI tools, like virtual try-on, aim to improve customer experience and reduce fit uncertainty.
- Catches and ASOS are developing platforms that visualize clothing on diverse body types.
- Retailers are exploring strategies like return-shipping fees to protect margins.
- Experts believe these technologies could significantly lower return rates and reshape consumer expectations.
