{"id":202386,"date":"2026-04-05T08:37:00","date_gmt":"2026-04-05T12:37:00","guid":{"rendered":"https:\/\/testing.news-you-need.com\/index.php\/2026\/04\/05\/how-ai-is-trying-to-solve-retails-returns-problem\/"},"modified":"2026-04-05T08:45:18","modified_gmt":"2026-04-05T12:45:18","slug":"how-ai-is-trying-to-solve-retails-returns-problem","status":"publish","type":"post","link":"https:\/\/testing.news-you-need.com\/index.php\/2026\/04\/05\/how-ai-is-trying-to-solve-retails-returns-problem\/","title":{"rendered":"How AI is trying to solve retail&#8217;s returns problem"},"content":{"rendered":"<p><a href=\"https:\/\/www.cnbc.com\/2026\/04\/05\/ai-retail-start-ups-virtual-try-on-tech-margins.html\">How AI is trying to solve retail&#8217;s returns problem<\/a><\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/2026\/04\/05\/ai-retail-start-ups-virtual-try-on-tech-margins.html\">https:\/\/www.cnbc.com\/2026\/04\/05\/ai-retail-start-ups-virtual-try-on-tech-margins.html<\/a><\/p>\n<p>Publish Date: <a href=\"publish_date]\">2026-04-05 08:37:00<\/a><\/p>\n<p>Source Domain: <a href=\"www.cnbc.com\">www.cnbc.com<\/a><\/p>\n<ul>\n<li>\n<p><strong>Rise in Product Returns:<\/strong> Fashion retailers face significant losses due to the rising rate of product returns, estimated at $849.9 billion for annual retail sales in 2025, with 15.8% returned online.<\/p>\n<\/li>\n<li>\n<p><strong>Role of AI in Reducing Returns:<\/strong> Artificial intelligence startups are developing virtual try-on technologies to help customers visualize fit and style before purchasing, thus reducing the chances of returns and improving profitability.<\/p>\n<\/li>\n<li>\n<p><strong>AI Innovations:<\/strong> Companies like Catches are incorporating realistic physics to simulate how fabrics behave, aiming to provide a more accurate virtual try-on experience, thus potentially reducing return rates.<\/p>\n<\/li>\n<li>\n<p><strong>Impact on Fashion Retail Giants:<\/strong> Retailers like Zara, ASOS, and Shopify have implemented or experimented with virtual try-on tools to tackle return issues. Zara has introduced return fees to combat margin erosion, a strategy also supported by improved virtual try-on solutions.<\/p>\n<\/li>\n<li>\n<p><strong>Influence of Gen Z Shoppers:<\/strong> The trend of high online returns is largely driven by Gen Z consumers, who have an average of nearly eight online returns per person annually.<\/p>\n<\/li>\n<li>\n<p><strong>Evolving Technology and Challenges:<\/strong> While AI solutions can significantly reduce returns, they are not a complete fix and must be complemented by traditional retail practices and policies to maximize ROI.<\/p>\n<\/li>\n<li>\n<p><strong>Role of Tech Companies:<\/strong> Tech giants like Amazon, Adobe, and Google are also developing virtual try-on technology and working with fashion brands to integrate their solutions into e-commerce platforms.<\/p>\n<\/li>\n<li>\n<p><strong>Future Impact:<\/strong> The use of AI in virtual try-ons can lead to substantial reductions in returns and improve conversion rates, as demonstrated by successful AI startup models, but the overall effectiveness can vary among different brands.<\/p>\n<\/li>\n<\/ul>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How AI is trying to solve retail&#8217;s returns problem https:\/\/www.cnbc.com\/2026\/04\/05\/ai-retail-start-ups-virtual-try-on-tech-margins.html Publish Date: 2026-04-05 08:37:00 Source&#8230;<\/p>\n","protected":false},"author":1,"featured_media":202387,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108081971-1735925320051-gettyimages-1997191017-655594cc800be52866b0e017_withmeta.jpeg?v=1735925410&w=1920&h=1080","fifu_image_alt":"","footnotes":""},"categories":[14],"tags":[20],"class_list":["post-202386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","tag-artificial-intelligence"],"_links":{"self":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/202386"}],"collection":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=202386"}],"version-history":[{"count":1,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/202386\/revisions"}],"predecessor-version":[{"id":202388,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/202386\/revisions\/202388"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/202387"}],"wp:attachment":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=202386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=202386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=202386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}