Imagine pouring your heart into creating a best-selling product, only to have customers return it en masse - with most items deemed unsellable. This isn't a hypothetical scenario but the harsh reality facing Amazon apparel sellers today. Return rates have become the Damocles sword hanging over their profitability.
"High return rates mean you're basically running a charity," goes a dark joke circulating among Amazon sellers. While hyperbolic, it captures the financial strain many experience. The true danger lies in low-margin products with high return rates - a perfect storm for business failure.
Shocking Return Statistics
One distressed seller recently reported a 27% return rate for men's pants and 33% for women's apparel, with most returns classified as unsellable. Surprisingly, fellow sellers responded that these numbers represented "good fortune" compared to their experiences.
Data reveals even more alarming trends:
- Skirts category: Average return rates hover around 40%, with activewear skirts reaching 45.82% and dance skirts skyrocketing to 65.1%.
- Women's apparel subcategories: Some niche segments report return rates as high as 88%, though sellers guard these specific categories closely.
The Double Whammy: Returns and Unsellable Inventory
Apparel sellers face compounded challenges beyond high return rates. Many returned items become unsellable due to:
- Damaged packaging or tags
- Wear and tear from try-ons
- Strict Amazon condition requirements
Compounding the problem, many fulfillment centers now refuse relabeling services for clothing items, forcing sellers to either destroy returns or pay expensive storage fees.
Strategies to Reduce Unsellable Returns
While return rates may be inherent to fashion categories, sellers can implement these three tactics to minimize unsellable inventory:
1. Packaging Revolution: Replace adhesive-seal bags with resealable zipper bags. The latter allows multiple openings without damage, significantly reducing packaging-related returns.
2. Label Redundancy: Place duplicate labels both externally on packaging and internally with clear "return replacement label" markings. This safeguards against tag damage during transit or returns.
3. Material Matters: Opt for frosted (rather than clear) poly bags with at least 20-gauge thickness. The opaque finish conceals minor folding imperfections that might otherwise trigger unsellable classifications, while the sturdier material prevents transport damage.
These packaging innovations apply beyond apparel and can help sellers across categories protect their margins in Amazon's competitive marketplace.