Predictive Returns Intelligence: Transforming Fashion E-Commerce Profitability in India

Smarter Returns Through Predictive Intelligence in Fashion Retail

In an ET Edge Insights feature, Sirish Mellacheruvu, Senior Leader – Product and Industry Practice at Altimetrik, explores how predictive intelligence is redefining returns management in global and Indian fashion e-commerce. As the Indian fashion e-commerce market accelerates toward nearly $100 billion by 2032, returns driven by behaviours such as bracketing are emerging as a major operational, financial, and sustainability challenge. The article highlights the limitations of reactive approaches like return fees and policy restrictions, which often reduce short-term costs but risk long-term customer loyalty and brand trust.

The coverage underscores how predictive returns intelligence powered by AI, machine learning, and behavioural analytics enables retailers to anticipate and prevent returns before they occur. By combining customer behaviour modelling, SKU-level anomaly detection, and real-time, personalised nudges such as fit recommendations and peer insights, retailers can reduce return rates, improve margins, and enhance customer experience. Sirish emphasizes that predictive-first strategies not only optimise inventory and reverse logistics but also support ESG goals and product innovation, positioning predictive intelligence as a strategic differentiator for the future of fashion retail in India and beyond.

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