Reducing retail supply chain costs of product returns using digital product fitting

Purpose This paper investigate how fit uncertainty impacts product return costs in online retailing and digital fitting, a pre-sales fitting practice, can reduce uncertainty. Design/methodology/approach The analyzes the current performance of retailer's e-commerce operations by estimating generated returns, including handling costs, tied-up capital, inventory holding transportation order-picking costs. estimated were built on 2,229 transactions from Scandinavian fashion footwear retailer. A technology was tested with retailer’s products resulted estimations such could affect returns. Findings cost is approximately 17% prime cost. major elements are which together amount to 72% total If well calibrated, cut fit-related up 80%. findings show customers reacted technology: it unable verify every time, but serves as useful effective support tool for when placing orders. Research limitations/implications Virtual verification using key retailers Digital three-dimensional scanning more appropriate some products, unsuitable that difficult measure scan. Originality/value contributes an empirical estimate retail supply chain associated uncertainty, theoretical understanding role avoiding