BENGALURU: Flipkart and Myntra exposed fraudulent activities of some engineering students from Kanpur, who would order branded clothes. Then they would stitch its labels on inferior locally made clothes and claim a refund citing a bad fit. It costed company hundreds of such transactions over two months when the retailer realized what were happening.
In domestic online fashion industry such frauds and damaged originals account for 10 percent of all product returns. Major e-retailers like Flipkart, Myntra and other smaller start-ups are fighting back the issue with artificial intelligence and other advanced technologies.
According to the data released by the online fashion retailers, about 30% of the total fashion products sold online are returned back citing various reasons. Due to such huge returns, the related logistics costs are about Rs. 870 crore a year. This figure also includes products that are not delivered or rejected by the buyer without accepting the delivery of the product.
Product return occurs in other categories also, but the online fashion industry has the highest number of returns due to reasons like bad fit and mismatch of texture. Still the industry is left with little option but to allow and encourage the customers to try on clothes before buying online.