How Cuts Clothing skyrocketed its exchange rate to 50% higher than the industry average

Cuts Clothing is a direct-to-consumer men’s brand selling exclusively online through cutsclothing.com. The company offers classy, comfortable, customizable clothing for the professional by accessorizing the T-shirt for the modern man.

The Challenge

While shoppers love the brand’s custom t-shirt cuts, they’re unable to try the shirts on before purchasing online. The brand says 80% of its returns are due to size issues from consumers seeking the perfect fit. 

While this is a common challenge for all online apparel companies, it provided an extra layer of difficulty for Cuts, which currently operates with a team of just 12 employees. The brand knew it needed to streamline its process for dealing with exchanges and returns – and fast. 

The Solution 

Cuts views exchanges and returns not as an obstacle, but rather as an opportunity with enormous upside potential to drive revenue and profitability. The online retailer implemented Happy Returns’ returns software and reverse logistics solutions to increase its exchange rate, cut shipping and logistics costs, and reduce the workload for its employees. 

How does it work?

1. Initiating exchanges and returns: The new software optimizes exchanges by recommending similar items and making them available to shoppers in just one click. 
2. Accepting items: Shoppers are then given the choice to return the shirt by mail or to exchange it in-person at one of over 700 Happy Returns Return Bars nationwide. Shoppers find the latter option convenient because they don’t have to worry about repackaging the shirts or printing a return label. 
3. Processing items: After being dropped off at a Return Bar, items are then aggregated and shipped to the nearest Return Hub in reusable boxes, drastically cutting down on cardboard waste. Happy Returns then inspects, refolds, and repackages the shirts to prepare them for resale—aggregating and shipping items in eco-friendly, reusable containers back to Cuts.

The Impact 

A higher exchange rate

Since implementing Happy Returns’ online returns and exchange software, Cuts’ exchange rate has doubled, and is now more than 50% higher than the industry average for ecommerce. Cuts’ repeat customer rate is also rising, which means increased revenue for the company.  

Reduced costs 

Approximately 60% of Cuts’ customers now choose to return in-person at the Return Bars, instead of utilizing the company’s by-mail option. The shift has significantly reduced costs and improved the company’s bottom line. Director of Finance Carter Shae also says outsourcing the inspection and sorting process also saved Cuts a lot of time and effort. 

An enhanced customer experience

It was important for Cuts to not only reduce the exchange burden for its employees, but for its customers, too. Luckily, Cuts’ comprehensive returns solution also improved the overall customer experience. 

“Most customers consider exchanges and returns a headache,” says Carter. “We’ve had so many positive comments from customers, such as, ‘love the experience,’ ‘the service was amazing,’ and ‘wish all returns could be this fast and easy.’ It’s very rewarding.”

Want more details about Cuts’ new end-to-end returns solution? Check out the Cuts customer story, featuring more insights about how the retailer doubled its exchange rate—while retaining revenue and enhancing customer satisfaction.

This blog originally appeared on Happy Returns' blog, where you can subscribe for future content.