The costly habit of bracketing
Bracketing has become a default shopping behaviour for many online consumers. Shoppers order multiple sizes, styles, or colours of a product, intending to return the ones that don’t fit their needs. While convenient for customers, this trend is a logistical and financial nightmare for retailers, with mounting costs in shipping, returns processing, and inventory disruptions.
We’ll explore why bracketing is on the rise, its impact on online retailers, and how brands can balance customer expectations with operational efficiency.
Why is bracketing more common than ever?
Several key shifts in consumer behaviour and retail practices have driven the bracketing trend:
1. The shift to online shopping
In-store shopping allows customers to try before they buy. Online, they replicate this by ordering multiple variations and returning what doesn’t work. This is particularly common in fashion and footwear, where fit is a key factor.
2. The influence of free and easy returns
Many retailers have encouraged bracketing – often unknowingly – by offering hassle-free returns as a competitive advantage. Generous policies, like extended return windows and free return labels, have created a low-risk mindset for consumers.
3. The role of social media and influencer culture
With the rise of social commerce, consumers increasingly buy with aesthetic aspirations in mind. Haul videos, ‘outfit of the day’ content, and influencer collaborations push consumers towards bulk ordering, trying, and sending back the extras.
4. Increasing consumer expectations for convenience
Consumers expect speed, flexibility, and zero risk when making a purchase. Bracketing allows them to feel in control, especially when retailers offer express delivery and free returns as standard.
The financial and operational impact on retailers
While bracketing improves customer confidence, it creates hidden costs for retailers:
1. Higher reverse logistics costs
Processing returns isn’t free. Shipping, inspecting, restocking, and repackaging products all incur costs. In the fashion industry, one in three online purchases is returned, and return rates for bracketed orders are even higher.
2. Inventory disruptions and stock misalignment
Bracketing means products are locked in limbo. They’re not sold, but they’re also not available for other customers. This leads to stock shortages, impacting revenue and creating demand forecasting challenges.
3. Environmental impact and sustainability challenges
Returns don’t just cost money; they cost the planet. An estimated 16 million tonnes of CO2 emissions are produced annually from returns-related transportation. Many returned items end up in landfills, either due to damage, repackaging costs, or fast-moving inventory cycles.
4. Fraud risks and policy abuse
Some customers take advantage of lenient return policies, engaging in behaviours like ‘wardrobing’ (buying, wearing once, and returning) or ‘staging’ (buying items purely for social media content). Without clear policies and return monitoring, these issues can escalate.
How retailers can reduce the impact of bracketing
While bracketing is unlikely to disappear, retailers can take steps to manage its impact without alienating customers.
1. Improve product information and sizing accuracy
One of the main drivers of bracketing is uncertainty – will it fit? Will it look the same in real life? Enhancing product information can reduce uncertainty and, in turn, return rates.
- Detailed size guides – Use exact measurements, not just generic S/M/L labels.
- AI-powered fit recommendations – Leverage previous customer data to guide new shoppers.
- High-quality product images & videos – Showcase materials, texture, and true-to-life colours.
2. Offer virtual try-ons and Augmented Reality (AR) tools
Retailers investing in AI-driven fitting rooms and virtual try-ons see a drop in return rates. These technologies allow customers to visualise products before purchasing, making them less likely to bracket.
3D visualisation – Let customers see the product in different lighting and angles.
AI-powered sizing tools – Tools that analyse body shape data to suggest the best fit.
3. Introduce smarter return policies (without driving customers away)
A shift towards more structured return policies can discourage excessive bracketing without damaging customer loyalty. Consider:
- Encouraging exchanges over refunds – Customers who swap sizes instead of returning items entirely are less likely to churn.
- Introducing tiered return fees – Free returns for loyal customers, but fees for excessive returners.
- Shortening return windows – Encouraging faster decisions reduces ‘closet stockpiling’.
4. Identify and manage serial bracketers
Not all customers bracket equally. Using data analytics, retailers can flag excessive bracketers and adjust policies accordingly.
Strategies include:
- Personalised prompts: “We noticed you frequently return items – can we help you find the perfect fit?”
- Setting return limits for frequent returners: Implementing ‘return caps’ on high-risk accounts.
- Providing tailored recommendations: AI-driven suggestions to help customers buy the right item the first time.
5. Streamline the returns process for efficiency
Managing bracketing isn’t just about reducing returns; it’s about handling them more effectively.
- Automate returns processing: Speed up inspection, restocking, and refunds.
- Use regional return hubs: Reduce shipping costs and CO2 emissions by processing returns locally.
- Implement resale & recommerce solutions: Redirect returned items into secondary sales channels to reduce losses.
A smarter approach to bracketing
Bracketing is a behaviour, and, like all customer habits, it can be managed with the right strategy. By improving product information, leveraging technology, adjusting return policies, and streamlining logistics, retailers can minimise the downsides while still offering flexibility to customers.
Bracketing isn’t going away – but with the right approach, its impact can be controlled.
About the author:
Efficient fulfilment and smart returns management are critical to minimising the financial and operational impact of bracketing. By leveraging data, automation, and customer-centric policies, retailers can strike the perfect balance between customer convenience and business sustainability.
For more insights on scalable fulfilment, returns optimisation, and cross-border logistics, visit fulfilmentcrowd.com or download their free eBook
Published 21/02/2025