Background: ASOS - which FYI is short for As Seen On Screen - is an online retailer from the UK. They launched back in 2000 as a fashion knock-off retailer (they even had a product called 'black leather jacket as seen on Mission Impossible).

What happened: Fast-forward to now, ASOS sells over 850 brands, ships to 196 countries and is worth a huge US$2.4 billion. It's long been seen as a stock market darling 'cos it was always reporting increasing sales and profits...but that's about to change.

What else: Despite ASOS customers shopping more during the pandemic (what else was there to do?!), the company has warned of lower profits ahead due to supply chain issues. And, they say sales growth is slowing because customers are returning more frequently.

So what's the key learning? 

💡Despite the glitz and glam of online retailers, there is a hidden cost that can really hurt their profit. Customer returns. 

💡Data shows that 20% of online-bought products are returned, compared to just 9% of items bought in-store. That's largely because customers can't actually try on the item, or see it in the flesh.

💡Returns represent around US$310 billion in lost sales per year. No wonder companies are creating augmented reality alternatives to try and reduce returns. 

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