At a recent industry conference, I had a revealing conversation with an angel investor. When I mentioned the environmental and operational impact of high return rates in fashion, he paused and asked:
“Why do you think returns are a problem for some brands and marketplaces?”
It wasn’t a rhetorical question – it was a challenge to a deeply held belief about sustainability in fashion.
Growth at All Costs: The Investor Mindset
For many investor-backed fashion brands and marketplaces, fashion ecommerce return rates of 60% aren’t considered a red flag. In fact, they can be a strategic feature of the business model.
Why? Because many investors are focused on one metric above all: revenue growth.
As long as a brand’s top-line numbers are climbing, return rates are often ignored. Returns may slash profit margins and inflate logistics costs, but if the sales volume looks impressive, the brand appears to be scaling. And that drives:
- Higher valuations
- More funding rounds
- Better exit opportunities
This is the reality behind platforms like REVOLVE or ABOUT YOU, where fashion ecommerce return rates regularly reach 50-60%. Despite this, these companies continued to grow, secure investment, and even get acquired – ABOUT YOU was recently bought by Zalando.
In this model, the return rate isn’t a liability – it’s a byproduct of “hyper-growth”.
When Returns Don’t Matter (Yet Still Do)
It’s easy to see how this dynamic creates a disconnect.
On one side, you have brands and marketplaces optimizing for short-term revenue – riding high on inflated growth numbers while quietly absorbing the cost of returns.
On the other, you have a growing movement calling for:
- Smarter inventory management
- More accurate sizing
- Ethical production
- A lower fashion ecommerce return rate to reduce environmental damage
So which side is right?
The truth is, both perspectives reflect different priorities. But only one leads to long-term sustainability – for the business and the planet.
The Environmental Price of High Return Rates
Let’s step away from spreadsheets and look at the real-world impact.
- In the U.S., fashion returns contribute 15 million tons of CO₂ emissions annually.
- 20–30% of returned clothing is never resold – it’s landfilled, incinerated, or offloaded to third-party liquidators.
- Returns inflate overproduction, packaging waste, and transportation emissions.
- And worst of all? Most of this is preventable.
The link between fashion ecommerce return rates and environmental waste is undeniable. The higher the return rate, the greater the footprint.
If a brand’s business model depends on burning through stock to show sales momentum, what future are we really building?
The Real Question We Should Be Asking
As a fashion tech founder focused on sizing accuracy and reducing returns, I often find myself in rooms filled with these conflicting agendas.
Some want to grow fast and sell the company before the cracks show. Others are focused on fixing the underlying flaws – solving fit, returns, and overproduction at the root.
And that leads us to a critical question:
What kind of fashion industry do we want to build?
One that thrives on inflated numbers and delayed accountability?
Or one that invests in real innovation – reducing fashion ecommerce return rates, improving customer experience, and protecting the environment?
Because here’s the tough truth:
Ignoring return rates may work for short-term exits, but it’s not a sustainable business strategy.
We Can Do Better – And We Must
At SizeSense.ai, we believe the future of fashion isn’t about chasing vanity metrics. It’s about precision, sustainability, and integrity.
By helping brands get sizing right the first time, we reduce returns before they happen. That means:
✅ Lower fashion ecommerce return rates
✅ Reduced emissions and waste
✅ Smarter product development
✅ Stronger customer trust and retention
60% fashion ecommerce return rates shouldn’t be normalized – they should be challenged.
Because real growth is more than just numbers on a slide deck. It’s about building a system that works for everyone – brands, customers, and the planet.
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