INTRODUCTION

The growth of electronic commerce gives the customer a chance to choose to purchase
the same product/service online or in a physical store. Therefore, it is crucial to understand what
is behind the choice of purchasing online or offline and how to combine the two channels to
provide the best customer experience. The customer journey usually starts on digital channels,
where the possibility to access product information and to purchase the product/service can be
done in few steps.(Dias et al., 2022) Young Bangladeshis under the age of 35 prefer to buy
things online since it's less time-consuming and the diversity of goods offered, such as various
types of things. When questioned which one of the particular goods and services they desired,
51.33 % chose clothing, while 24.67 % preferred accessories. Electronic gadgets are preferred by
15.33 % of those surveyed, while books are been preferred by 8.67 %.(Ahmed et al., 2022)
While many fashion retailers view high returns as a necessary evil, current return rates will
become unmanageable as e-commerce catches up to brick and mortar shops. By considering the
customer experience, solving pain points and leveraging technology. As the fusion of technology
and fashion continues to evolve, artificial intelligence (AI) is fast emerging as a transformative
force in the fashion industry. According to McKinsey analysis, generative AI could add,
conservatively, $150 billion and up to $275 billion to the apparel, fashion, and luxury sectors’
operating profits in the next three to five years. This astronomical figure underlines the pivotal
role that AI is set to play in the future of fashion, not just as a disruptor, but also as a value
creator. From predicting trends and optimizing supply chains to customizing the shopping
experience and enabling virtual try-ons, AI’s potential in reshaping the fashion landscape is
substantial and varied.(McKinsey & Company, 2023) Retailers and consumers can effectively
collaborate to reduce the rate of apparel e-commerce returns by implementing several strategies.
Firstly, retailers can improve their return policies, implement preventive actions, and utilize
artificial intelligence to reduce return rates. Secondly, retailers should focus on providing
accurate size and fit information to customers, as poor fit is a major driver of returns in fashion
e-commerce(Nestler et al., 2021) From retailers failing to address issues with fit, to shoppers
taking advantage of easy-going return processes, these are the main reasons for product return.
Secondly, Online shoppers often face challenges when evaluating the quality of garments before
making a purchase. Issues such as loose threads, subpar materials, and manufacturing errors can
lead to dissatisfaction and prompt customers to return the products. In fact, for 79% of shoppers
who return goods, the reason for dissatisfaction is often related to quality rather than fit.(Lu et
al., 2023)(Milano & Mangiaracina, 2021)

Bibliography
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