For enterprise fashion and beauty brands, returns have always been framed as the enemy. They’re seen as lost revenue, wasted logistics costs, and messy operational overhead. But what if the very thing you’ve been trying to reduce is actually the lever that could unlock your next stage of growth? There is a way for brands to turn returns into profit.
The Hidden Opportunity in Returns
Across the industry, return rates in fashion and beauty often sit between 18–22%. On the surface, that looks like a profit drain. But scratch deeper, and returns reveal something else: customer intent. Each return is proof a shopper was willing to take the leap, they wanted to try your brand, they engaged, and they came close to keeping the product.
Instead of being a signal of failure, returns are a signpost pointing toward what customers really want. The brands that are winning aren’t chasing lower return rates, they’re learning how to harness the data and cashflow tied up in the process.
Why Reducing Returns Caps Growth
It’s tempting to make “reduce returns” the north star KPI. But lowering returns often means lowering sales. Customers buy less when the risk is higher, baskets shrink, and new shoppers hesitate at checkout.
The shift happening now is from return reduction → return optimisation. It’s not about stopping returns, but about re-engineering the process so they work for you, not against you.
The Try Before You Buy Advantage
One of the clearest examples of this shift is the Try Before You Buy (TBYB) model. Instead of asking shoppers to commit before they’re ready, TBYB removes friction by letting them try first and pay later. The result? Customers order with confidence, brands see higher basket sizes, and returns flow back into stock faster.
From an operational perspective, TBYB turns what used to be a 30+ day cycle into just a few days. Payments clear faster, inventory re-enters circulation quickly, and exchanges replace refunds. The impact on cashflow and margin is game-changing.
Data That Fuels Smarter Decisions
Every return tells a story: the size wasn’t right, the style didn’t land, the fabric didn’t meet expectations. Capturing this at scale gives enterprise brands the kind of insight focus groups can only dream of. Instead of waiting months to notice trends, you can adjust buying, sizing, and merchandising in real time.
Scaling Smarter
Returns don’t need to be a growth ceiling. With the right model, they become a growth engine, powering higher conversions, larger orders, and stronger customer loyalty. The most advanced retailers aren’t cutting returns; they’re turning returns into profit while scaling growth.
This blog only scratches the surface. Our full report, Turning Returns Into Profit While Scaling Growth, breaks down the benchmarks, workflows, and profitability models enterprise brands are using right now to transform returns from a liability into a strategic advantage.
Access the report here to see how leading fashion and beauty retailers are redefining returns and how you can too.
