Bracket buying, a shopping behavior where customers purchase multiple variations of a product (for example: different sizes, colors, or styles) with the intention of returning those that don’t meet their needs, has become a defining trend in online retail. While this practice allows customers to enjoy greater flexibility and assurance in their purchasing decisions, it also brings significant challenges for retailers, particularly in terms of profitability, logistics, and sustainability. Let’s explore bracket buying, its effects on the eCommerce industry, and how brands can address this growing phenomenon.

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What Is Bracket Buying?

Bracket buying primarily occurs in online shopping, where customers lack the opportunity to physically try or inspect products before purchase. By ordering multiple versions of a product, shoppers aim to ensure they find the perfect fit or style. This behavior is most prevalent in the apparel industry, where size and fit can vary widely across brands.

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Although bracket buying offers convenience to shoppers, it places a significant burden on retailers. From increased return rates to higher operational costs, businesses often grapple with the repercussions of this seemingly harmless practice.

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The Financial Impact of Bracket Buying

Returns are an inevitable aspect of online retail, but bracketing amplifies the strain on resources. For every product returned, retailers must account for costs such as:

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• Reverse logistics: Shipping the item back to the facility.
• Inspection and processing: Assessing the condition of the returned product and determining its next steps (e.g., restocking, resale, or disposal).
• Resale losses: Products returned in unsellable condition or those that must be heavily discounted.

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Return costs are cited as significant to severe by 80% of retailers, and return rates are growing faster than revenue for 91% of businesses. This escalating trend underscores the need for effective strategies to manage and mitigate bracket buying’s financial toll.

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The Environmental Consequences of Bracketing

Beyond financial concerns, bracket buying also has a profound environmental impact. Each return contributes to increased carbon emissions from transportation and generates waste from discarded packaging and unsellable products. Globally, up to 25% of apparel returns end up in landfills, and return-related transportation emissions rival the output of millions of cars annually.

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Consumers are becoming increasingly aware of the environmental consequences of their shopping habits. A significant number of shoppers now prioritize sustainability, providing retailers with an opportunity to align their return policies with environmentally conscious practices.

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Addressing Bracket Buying: Proactive Solutions for Retailers

To manage the challenges associated with bracket buying, retailers can adopt a multi-faceted approach that emphasizes both prevention and process optimization.

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1. Enhance Product Information

Uncertainty often drives bracketing. By providing comprehensive and accurate product details, retailers can reduce the likelihood of customers ordering multiple variations. Key strategies include:

• Detailed product descriptions with clear sizing guides.
• High-quality images showcasing different angles, colors, and real-world applications.
• Reviews and testimonials to build customer confidence.
• Innovative tools like virtual dressing rooms to simulate the fit and feel of products.

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2. Implement Data-Driven Returns Management

Sophisticated returns management systems (RMS) can help retailers streamline the returns process and identify patterns in customer behavior. These systems centralize data from order management and supply chain tools, offering insights that can inform decisions such as:

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• Identifying habitual bracketers.
• Adjusting inventory and marketing strategies.
• Optimizing return routes to minimize environmental impact.

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Automation can further reduce operational costs, ensuring returns are processed efficiently and sustainably.

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3. Educate Consumers

Retailers can influence shopper behavior by raising awareness about the implications of bracketing. For instance:

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• Sharing insights on the environmental cost of returns, such as emissions and waste generated.
• Offering incentives for mindful purchasing, like discounts for customers who avoid excessive returns.
• Displaying pop-up messages at checkout to discourage unnecessary purchases and highlight the potential environmental impact.

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4. Explore Re-commerce Opportunities

The secondhand market has seen rapid growth, driven by consumer interest in sustainability and affordability. By reselling returned items in good condition through recommerce platforms, retailers can recoup value and reduce waste. This strategy not only offsets the losses associated with bracketing but also appeals to eco-conscious shoppers.

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5. Reconsider Return Policies

While free returns remain a popular incentive, many retailers are re-evaluating this approach. Implementing selective fees for returns—particularly those driven by bracketing—can discourage excessive purchasing. Transparent communication about the reasons for such fees, coupled with education on sustainability, can help maintain customer trust.

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The Path Forward

Bracket buying is a complex issue that reflects the evolving dynamics of online retail. While it offers undeniable convenience for shoppers, its impact on profitability and the environment cannot be ignored. Retailers have a unique opportunity to address this challenge by adopting innovative technologies, educating consumers, and rethinking traditional return policies.

By fostering collaboration between shoppers and businesses, the eCommerce industry can balance customer satisfaction with sustainable practices. As awareness grows, solutions that benefit both retailers and the planet are well within reach.

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