Whether you’re a dedicated follower of fashion, doing a runway walk, or just lounging around the house in sweats and slippers, apparel is about as basic a staple as you can imagine. That’s why it’s a stalwart eCommerce category. Americans, it seems, have a voracious appetite for the latest trends and styles, and brands are always racing to keep up. The U.S. leads the world in per capita spending on apparel, at $1,460 per year, and more than a third of Gen Z (36%) buys clothing at least monthly.
Because it’s such a competitive industry, apparel fulfillment in eCommerce matters a great deal to the consumer experience and brand loyalty. The huge variety of sizes, colors, and styles make fulfillment a highly complex process and prone to picking/packing errors. Partly for this reason, the average return rate for online apparel in the U.S. was 24.4% in 2023, representing $38 billion in merchandise value and $25.1 billion in processing costs. Many consumers practice “bracketing”: purchasing multiples of a clothing item, keeping one and sending the rest back.
Seasonality is another challenge with apparel – and not just for the end-of-year holidays. Inventory management and forecasting become critical so seasonal windows aren’t missed, leaving you with a bunch of dead stock for markdown or liquidation.
Depending on the types and variety of SKUs, and what kind of process is set up, apparel orders in a fulfillment center can either follow a batch or wave picking methodology, each with pluses and minuses.
Batch picking uses WMS and/or OMS systems, directing a single associate to pick multiple orders at a time, reducing repeat trips to the same bin location. In wave picking, an associate picks for a single order, one SKU at a time, leveraging the software to set up multiple waves through the course of a shift. Scheduling is optimized in order to reduce interference with other operational functions, making more efficient use of labor.
There are many high-tech tools available to improve the fulfillment process, such as goods-to-person systems that bring items to the associate for packing, and robots that either direct workers to bin locations or retrieve items themselves. Having a well-thought-out inventory positioning approach within the warehouse will also make the process more efficient.
All of the above is focused on a single goal: getting completed orders out on time, with a high level of accuracy, fueling customer satisfaction, loyalty and increased sales. Here are some practical ways to boost performance and make your operations more efficient.
This involves strategically locating fulfillment nodes near major markets, based on an analysis of customer data, to shorten shipping times. Analytics, including AI and BI tools, also helps sharpen inventory forecasting and delivery route optimization.
Regular review and adjustment of network configuration helps you adapt to demand shifts, and keep order processing, warehousing, and last-mile delivery efficient. If you’re going the 3PL route, as many SMB brands do, look for a partner with a strong track record in handling eCommerce apparel fulfillment.
It’s important to offer a range of options for customers, from standard shipping to two-day and even same-day delivery, if possible. Many studies have shown that offering faster shipping times increases conversion rates and customer lifetime value.
A qualified 3PL partner has the logistics experience and broad carrier network to enable you to provide cost-effective expedited shipping by offering customers volume discounts through order consolidation.
As noted above, eCommerce apparel is infamous for its high returns rate. Part of the problem has been years of very generous policies, which many retailers are belatedly rolling back. Make your policy hassle-free – but not too easy, as LL Bean was for years with its unlimited no questions asked approach.
Having an efficient returns process that’s fast and easy for customers is a must in apparel. Offer prepaid shipping labels with easy-to-follow instructions. If possible, take advantage of services that leverage a network of local drop-off points. Returns software provides instant processing and fast refunds or exchanges, and efficient tracking and processing, for a great customer experience.
The importance of visually appealing packaging, creating a great unboxing experience, is key in apparel eCommerce. Invest in great packaging design and high-quality materials, and see how it impacts customer satisfaction and brand loyalty. Also take full advantage of all the branding potential of your packaging, which is really an ambassador in transit.
Consider adding personalized touches like notes and targeted promotional coupons based on order history, interactions and other customer data.
It’s a highly competitive world of fashion, so any edge you can get should be utilized to the fullest. Having a great apparel fulfillment process, from order arrival in the OMS to the customer doorstep, can go a long way toward setting your brand apart.
ShipBots, a 3PL based in Los Angeles, offers end-to-end eCommerce solutions, including a strong focus in apparel. This includes highly efficient inventory management, fast order processing, specialized handling, branded packaging and a customizable returns portal. There’s a reason why major apparel brands like Chico’s, Levi Strauss, Wrangler and Rent the Runway trust ShipBots to handle their order fulfillment. Get a free quote today.
