Boxed-Retail Frenzy

Last week we published a blog about retail disruptors and included two boxed-apparel e-commerce success stories.  On June 20, Amazon announced that Prime Wardrobe, a boxed apparel product, is now available to all domestic Prime customers.  Users can order three fashion items or more with no upfront fee, send it  back after a week or pay for those they like.  Of course, there is no shipping fee for returns.

We are seeing the lights go on at online retail.  Women need to try things on, feel the material, look in a mirror before they decide to buy, and that hasn’t changed with e-commerce. It is predicted that 25% of e-commerce  retailers will offer this service by next year.

One huge issue with this type of service is  returns, which may greatly increase operating expense.  According to a new survey from Brightpearl, more than 85% of customers expect free returns.

Another huge cost to online retailers is the Supreme Court ruling on June 22 that states and localities may require the collection of sales taxes on all internet purchases.  This cost will be passed on the consumer, making goods purchased on the internet more expensive.  Price for an online item  is often critical for a purchase decision.

As I often say about these kinds of innovations, we shall see…………… For me and many of the women I know, shopping in a store fulfills the need for immediacy and the need to use all our senses,  our touch and sight  and smell before buying.

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