Size returns: charge exchanges or absorb the cost to avoid hurting conversion?
I have a question that I am sure many people here have lived through. Small fashion shop, average order value EUR 58, many first-time purchases and size returns around 16%. Until now the first exchange has been free, but logistics cost is starting to eat the margin. I am worried that charging for exchanges will lower conversion, but also that we keep absorbing it as if it were invisible. What would you do first: stronger size guide, photos by model height, charging the second exchange, or changing the whole policy?
I would not start by charging for the first exchange. First I would try to reduce doubt: model height and size, real garment measurements, whether it runs large or small and a mini FAQ right next to sizing. If it is still 16% after that, then I would change policy.
You can keep the first exchange free without making every return free in all cases. The message changes a lot: one thing is helping someone get the size right, another is funding unlimited try-at-home purchases.
I would look at returns by product. If two references generate half the problem, it may not be policy: it may be pattern, photo or description. Penalizing the whole shop for two bad garments usually becomes expensive.