Fashion Brand Adrianna Papell Enhances Inventory & Reduces Return Rates | Case Study

The Challenge: Managing High Return Rates in Social Occasion Wear

Adrianna Papell's business, particularly in social occasion dresses, faces some of the highest return rates in the fashion industry. The nature of the product and customer behavior, such as purchasing multiple dresses for events like weddings and returning all but one, leads to return rates of over 60%. The company recognized that while these behaviors were inherent to the product category, understanding the reasons behind returns and finding ways to lower the return rate could significantly improve profitability and operational efficiency.

According to Miriam Kessel, Director of Merchandising at Adrianna Papell, “Our overall return rate was driven by the nature of our product category. Even with that, we knew that lowering our return rate by even a couple of points could make a huge difference to our bottom line.”

Uncovering Insights with AI-Driven Precision

Before working with Returnalyze, Adrianna Papell could only see the raw return data but needed deeper insights to take action. They needed a solution to help them understand the specific reasons for returns and identify areas for improvement.

“Returnalyze gave us the ability to dive deeper into why things were being returned. It wasn’t just a black-and-white return rate anymore. They helped us take action on the reasons for returns and even showed us which high-return-rate styles were still profitable,” Miriam shared.

One specific insight from Returnalyze was around a high-volume, high-return dress. Due to its return rate, Adrianna Papell initially removed the dress from its assortment. However, Returnalyze revealed that the dress was still profitable despite the high return rate. This insight allowed Adrianna Papell to reintroduce the dress, focusing on colors with lower return rates, thus managing the style more profitably.

Reducing Costs and Improving Customer Satisfaction

By leveraging Returnalyze’s actionable insights, Adrianna Papell was able to address multiple operational challenges related to returns. For example, they identified sizing and fit issues driving returns and adjusted product descriptions accordingly. They also analyzed return data by product category, price point, and manufacturer to make more informed decisions.

“We’ve seen improvements in managing inventory, and we now know which categories and styles to focus on growing. Sportswear, for example, has a significantly lower return rate than our dress categories, and Returnalyze has helped us shift more focus there,” Miriam explained.

Driving Measurable Outcomes

Since partnering with Returnalyze, Adrianna Papell has seen a noticeable reduction in return rates for key styles. Although exact figures were still being assessed, Miriam confirmed that the decrease in return rates has benefited their bottom line.

“Our return rate has definitely gone down, and it's been a clear benefit to our business. We’ve also started making more strategic decisions about which categories to grow based on the insights we’re getting from Returnalyze,” she added.

Looking Ahead: A Data-Driven Approach to Growth

As Adrianna Papell continues to evolve, its partnership with Returnalyze remains a crucial component of its strategy for reducing returns and improving profitability. By focusing on data-driven insights, the brand is addressing current challenges and uncovering new growth opportunities.

“We're in a great groove with Returnalyze. As our needs evolve, we know we can rely on them to help us continue improving our processes and making smarter decisions about our inventory and product offerings,” Miriam said.

Learn how Returnalyze can help your business reduce returns and drive customer satisfaction. Schedule a demo or contact our team today.