Fashion eCommerce “Buy Now, Pay Later” options boosts clicks, but also returns

“Buy Now, Pay Later” (BNPL) has always been marketed as a tool for conversion. But at what cost? As Nicholas Mazzei once put it:

“Klarna has been a dead business model from the start. And it has never made sense to me why retail businesses would work with them, because the costs are very high and the return rate kills profit. All of the buy now pay later schemes have really only been another Wonga scam.”

That comment stuck with me, because as brand owners and fashion eCommerce managers, we’ve all fallen into the same trap – prioritising tools that drive short-term conversions, without asking how they affect long-term profitability.

I’ve made this mistake too.

The Hidden Cost of Conversion Tools in Fashion eCommerce

From a marketing perspective, everything revolves around getting customers to click “Buy.” We design campaigns, optimise funnels, and measure success in terms of traffic and conversions. But how often do we have a strategy for increasing margins or reducing returns?

A few years ago, I was working in IT for a major fashion eCommerce platform. The marketing team requested a new BNPL tool integration, pitching it as a way to “increase conversion” and attract new customers.

But during all the business analysis, no one asked the most important question: Will this increase returns?

And yet, the answer was obvious.

• BNPL encourages impulse buying. When customers don’t feel the financial impact immediately, they click “Buy” more easily – sure, but they can also click “Return” just as fast.
• Returns skyrocket. If you are enabling this behaviour why would they limit themselves to only what they are sure they will keep? Every impulsive order that doesn’t fit or feel right flows straight back into your warehouse, eroding margins and bloating logistics costs.
• Margins shrink. These platforms charge significant fees. For brands already operating on razor-thin margins, BNPL often deepens the leak instead of plugging it. Now consider the the returns costs, that grow faster than the revenue those orders can bring.
• Customer loyalty suffers. BNPL doesn’t build brand trust – it only incentivises your customer to be reckless at your expense. It only fuels impulsive behavior, which rarely turns into a long-term connection.

And yet, in most organisations, returns are treated as a logistics problem, not a strategic business priority. They are “the cost of doing business”. Rarely do brands realise that many returns are accelerated by the very tools meant to drive growth.

A Smarter Path for Fashion eCommerce

It’s time to rethink what real growth looks like for your fashion eCommerce business. Instead of chasing conversions at any cost, you should invest in tools that protect margins and reduce returns.

Because here’s the truth – sustainable profitability doesn’t come from impulsive orders, it comes from loyalty, from returning customers. Imagine the word of mouth? Always receiving the right size… not having to deal with returns, with disappointment? Nothing drives long-term eCommerce sales like getting the right fit!

When customers get their size the first time, and EVERY time, they would always prefer choosing your products, knowing they can rely on your brand to deliver comfort.

How SizeSense Helps Fashion eCommerce Brands Reduce Returns

This is why we built SizeSense

• We match real customer measurements with actual garment specifications.
• Our solution factors in body type and fabric characteristics, not just generic size charts.
• The engine explains to customers when something won’t fit, and why, before they hit “Buy”.

By reducing returns, SizeSense helps fashion eCommerce brands protect margins, improve sustainability, and build true customer loyalty.

✅ Available for Shopify stores via the Shopify App Store
✅ Easy integration through our API
✅ Brands can schedule a demo or chat with us to learn more

Because real growth in fashion eCommerce doesn’t come from chasing impulse conversions. It comes from delivering great fit, reducing returns, and building brand trust that lasts.