The pandemic fundamentally changed the way we shop, with the temporary closure of physical stores representing a boon for online retailers. However, online retail’s surging market share has origins in long-standing fast fashion marketing practices. The premium placed on newness, low prices, and both free delivery and returns, all encourage customers to purchase multiple options with the knowledge they can return items freely (known as “bracketing”).
Online consumption has increased as a result of buy-now-pay-later programs like Klarna that enable users to place orders without making an advance payment. According to research, shops will typically see a 68 percent boost in average order value by providing such “payment solutions.”
According to industry research, the rate of cart abandonment drops by about 40% when payment options are offered. Sales are further boosted by promotional occasions like “Black Friday,” with fashion spending making up to one-third of all Black Friday purchases. Despite the allure of discounts and low costs, fast fashion items are sometimes poorly made and have fit and quality flaws, making them synonymous with returns. Discount-driven impulsive spending frequently results in regret, which raises the likelihood of return.
