Virtual Try-On Dramatically Reduces Return Rates
Returns are one of the biggest cost drains for online apparel retailers. By letting customers visualize products on themselves before purchasing, virtual try-on sets realistic expectations and reduces the likelihood of returns.Average Return Rate Reduction
Stores using Looksy typically see:15-30% Return Reduction
Products with virtual try-on enabled have significantly lower return rates
$5,000-$50,000 Annual Savings
Reduced returns translate directly to saved costs and increased profit
Higher Customer Satisfaction
Customers who keep their purchases are happier with their experience
Lower Environmental Impact
Fewer returns mean less shipping waste and carbon emissions
Why Returns Happen (and How Virtual Try-On Helps)
Top Reasons for Apparel Returns
1. Doesn't Look Like Expected (30-40% of returns)
1. Doesn't Look Like Expected (30-40% of returns)
The problem: Product photos don’t show how items look on real peopleHow virtual try-on helps:
- Customers see the garment on themselves
- Colors and patterns are visualized in context
- Style and silhouette become clear before purchase
- Expectations align with reality
2. Poor Fit (25-35% of returns)
2. Poor Fit (25-35% of returns)
The problem: Sizing uncertainty leads to buying multiple sizes or wrong sizesHow virtual try-on helps:
- Customers see how the garment sits on their body
- While not a sizing tool, it provides visual context for fit
- Combined with size charts, helps customers choose more confidently
- Reduces “I’ll just order both sizes” behavior
3. Buyer's Remorse (15-20% of returns)
3. Buyer's Remorse (15-20% of returns)
The problem: Impulse purchases without confidence lead to returnsHow virtual try-on helps:
- Visualization builds purchase confidence
- Customers make more informed decisions
- Emotional connection to the product increases commitment
- Less “I’m not sure about this” second-guessing
4. Color Doesn't Match (10-15% of returns)
4. Color Doesn't Match (10-15% of returns)
The problem: Screen colors don’t always represent the actual product accuratelyHow virtual try-on helps:
- Colors are rendered on the customer’s body for context
- Helps customers visualize how colors look on their skin tone
- Reduces “this color doesn’t work for me” returns
The True Cost of Returns
Returns aren’t just an inconvenience – they’re a major profitability killer.Direct Costs
- Shipping costs: $8-15 per return (often absorbed by the merchant)
- Processing and restocking: $5-10 per item in labor costs
- Product devaluation: Returned items may need to be discounted or written off
- Payment processing fees: Often not refunded even when the order is
Hidden Costs
- Customer service time: Handling return requests and questions
- Inventory disruption: Products out of circulation during return transit
- Packaging waste: Additional materials used for return shipping
- Environmental impact: Carbon emissions from extra shipping
Calculating Your Return Cost Savings
Example Calculation
Store with 1,000 monthly orders:- Return rate without try-on: 25% (250 returns/month)
- Return rate with try-on: 18% (180 returns/month)
- Returns prevented: 70 per month (840 per year)
- Annual return cost savings: 840 returns × 16,800/year**
Additional Benefits
Beyond direct cost savings:- Increased profit margins – Less revenue lost to returns
- Better inventory management – Products stay in stock longer
- Improved cash flow – Less capital tied up in returned products
- Higher customer lifetime value – Satisfied customers return to buy more
Return Reduction by Product Category
Categories with Highest Return Rates (and Biggest Opportunity)
Dresses:- Typical return rate: 30-40%
- With virtual try-on: 20-28%
- Why: Dresses have the highest uncertainty around fit and style
- Typical return rate: 20-30%
- With virtual try-on: 15-22%
- Why: Helps customers visualize necklines, patterns, and fit
- Typical return rate: 25-35%
- With virtual try-on: 18-26%
- Why: Expensive items with high return costs benefit significantly
- Typical return rate: 20-30%
- With virtual try-on: 15-23%
- Why: Fit-conscious customers appreciate visualization
Strategies to Maximize Return Reduction
1. Set Realistic Expectations
Be transparent about what virtual try-on shows:- “See how the style and color look on you”
- “Visualize the garment before you buy”
- “Reduce uncertainty with a virtual preview”
- Avoid claiming it’s “100% accurate” or “perfect fit guarantee”
- Combine virtual try-on with size charts and fit descriptions
- Include customer reviews for additional context
2. Target High-Return Products
Enable virtual try-on for products with:- Above-average return rates
- Frequent “doesn’t look like expected” return reasons
- Fit or style uncertainty
Analyze your return data to identify which products benefit most from virtual try-on. Focus there first.
3. Encourage Try-On Usage
Make the feature visible and easy to use:- Prominent button styling – High contrast colors, clear text, appropriate size
- Clear messaging – “Reduce returns – try it on virtually first”
- Incentivize usage – “Try On and get 10% off your first purchase”
- Promote in marketing – Email, social media, homepage banners
4. Combine with Other Return-Reducing Tools
Virtual try-on works best alongside:- Detailed size charts – Help customers choose the right size
- Fit descriptions – “Runs small,” “oversized fit,” etc.
- Customer reviews – Real feedback on fit and quality
- Product videos – Show fabric movement and texture
- Styling suggestions – Help customers visualize how to wear it
Measuring Return Rate Improvement
Key Metrics to Track
In your Looksy analytics and Shopify dashboard:-
Return rate with vs. without try-on
- Compare products with try-on enabled vs. similar products without
- Look for 15-30% reduction
-
Return reasons
- Track why customers return items
- See if “doesn’t look like expected” decreases
-
Cost savings
- Calculate total returns prevented × cost per return
- Measure profitability impact
-
Customer satisfaction
- Survey customers who used try-on
- Track repeat purchase rates
Calculate ROI
Return savings often exceed the cost of virtual try-on by 5-10x. Example:- Looksy monthly cost: $29
- Returns prevented per month: 50
- Cost per return: $20
- Monthly savings: 50 × 1,000
- ROI: 10x return on investment
Most stores see positive ROI within the first month, with compounding savings over time.
Real-World Return Reduction Data
Industry Benchmarks
- Shopify AR stats: 40% reduction in product returns for stores using AR try-on
- Fashion retailers: Average 20-30% return rate reduction with virtual try-on
- High-return categories: Up to 40% reduction for products like dresses and formal wear
Looksy Customer Results
Typical results from Looksy customers:- Small stores: 15-20% return reduction
- Mid-sized stores: 20-25% return reduction
- Large stores: 20-30% return reduction
Common Obstacles and Solutions
Obstacle: Returns aren't decreasing as expected
Obstacle: Returns aren't decreasing as expected
Solution: Check if customers are actually using virtual try-on. If engagement is low, improve button styling and promotion. If engagement is high but returns remain steady, add multiple product angles and detail shots (max 4 images) for better accuracy.
Obstacle: Certain products still have high return rates
Obstacle: Certain products still have high return rates
Solution: Some products may not be suitable for virtual try-on (complex textures, sheer fabrics). Disable try-on for these and focus on products where it performs well.
Obstacle: Customers still buy multiple sizes
Obstacle: Customers still buy multiple sizes
Solution: Emphasize that virtual try-on complements size charts, not replaces them. Add messaging like “Use virtual try-on + our size chart to find your perfect fit.”
Obstacle: Return reasons haven't shifted
Obstacle: Return reasons haven't shifted
Solution: Virtual try-on primarily reduces “doesn’t look like expected” returns. If most returns are due to quality issues or incorrect sizing, address those separately.
Environmental Benefits of Reduced Returns
Sustainability Impact
Every return prevented means:- Less shipping – Reduced carbon emissions from transportation
- Less packaging waste – Fewer boxes and materials used
- Lower environmental footprint – Decreases overall retail waste
Many customers care about sustainability. Promoting virtual try-on as an eco-friendly feature can resonate with environmentally conscious shoppers.
Marketing the Environmental Benefit
“Try On virtually and reduce unnecessary shipping – better for you and the planet.”Quick Wins to Reduce Returns
Implement these strategies for immediate impact:- Enable virtual try-on for high-return products first
- Track return rates before and after enabling try-on
- Add messaging: “Reduce returns – see it on you first”
- Combine try-on with size charts and fit descriptions
- Survey customers who used try-on about their satisfaction
- Calculate cost savings from prevented returns
- Promote the feature as a return-reducing tool
- Expand to more products based on return data
Long-Term Return Management
Virtual try-on is part of a comprehensive return reduction strategy:- Continuously improve product images – Better photos = better try-on accuracy
- Analyze return data regularly – Identify new opportunities for try-on
- Educate customers – Help them understand how to use try-on effectively
- Optimize over time – Learn which products and strategies work best
Stores that actively manage and optimize virtual try-on see compounding return reductions over 6-12 months.