Streamlining Style: Reducing Returns in Fast Fashion E-commerce with Lean Six Sigma

Abstract

The rise of fast fashion e-commerce, driven by consumer demand for trendy, affordable and quickly produced clothing, has led to high return rates, impacting customer satisfaction, profitability and sustainability. This study investigates the causes of 20% return rate of an online retailer, aiming to reduce to 12-15% within one month using Lean Six Sigma Techniques. Utilizing the DMAIC Cycle, the research combined qualitative surveys and quantitative return data analysis. Root Cause Analysis revealed that 75% of returns were due to quality and fit issues. In response, clearer product descriptions, enhanced sizing guides, and stricter supplier audits were implemented. As a result, return rates decreased to 15%, enhancing customer satisfaction, boosting sales, and achieving cost savings. The findings demonstrate that Lean Six Sigma effectively reduces return rates and boosts customer satisfaction, making it a valuable strategy for online retailers. Hypothesis testing confirmed significant improvements in both customer satisfaction and purchase frequency. Keywords - E-commerce, Fast Fashion, Lean Six Sigma, Return Rates.