The fashion and apparel industry has witnessed a significant shift towards eCommerce, a trend that accelerated markedly during the COVID-19 pandemic. Projections indicate that by 2027, the global fashion eCommerce market is projected to reach an impressive $1.2 trillion, with online transactions now accounting for one-fifth of all fashion retail sales.

This digital transformation is driven by several consumer-friendly factors, including the ability to easily compare prices, access customer reviews, and browse a much larger product catalog than typically available in physical stores, all without leaving our homes.

While eCommerce offers numerous opportunities in the fashion industry, it also presents significant challenges for business owners. These challenges must be effectively managed to reach customers and maintain operational efficiency.

In today’s blog, we will explore the key challenges faced by the eCommerce fashion industry and outline effective solutions. We’ll also highlight the benefits of online retail in fashion and examine a case study of Mytheresa – a leading luxury fashion eCommerce platform.

Quick jump

Challenges of eCommerce in Fashion 

As mentioned above, let’s start by listing the challenges that business owners may face when entering the fashion eCommerce industry.

Product fit

A major challenge in online selling clothes, shoes, and accessories is that online shoppers can’t try them before buying. This often leads to abandoned purchases and uncertainty about whether the product will be a good fit. 

Product search 

Another challenge for fashion eCommerce brands is creating a search system that quickly and accurately helps customers find what they’re looking for. This is particularly tricky when dealing with products that have many variations in size, color, style, or length.

Establishing trust and loyalty with customers 

In today’s digital world, where shoppers can easily access countless online stores and online fashion brands, a major challenge for eCommerce businesses is establishing trust and keeping customers coming back. This is crucial for long-term success but may not be an easy task.

Returns management 

High return rates pose a significant challenge in the fashion eCommerce sector. However, efficiently handling returns and quickly processing them can significantly boost customer satisfaction and improve the overall shopping experience.

Strong competition

The fashion eCommerce landscape is crowded, making it challenging for new online retailers to carve out their niche. This saturation means that emerging fashion retailers must work harder to differentiate themselves and attract potential customers.

Finalizing the order 

Meeting customer expectations for a quick and easy purchasing process is essential in the fashion industry. Modern shoppers want a smooth, hassle-free experience when finalizing their orders. This includes access to their preferred delivery and payment options and an easy way to use coupons and discount codes.

Effective and innovative solutions for the online fashion industry 

Now, as we describe the common challenges, let’s go through the examples of solutions to the mentioned issues.

Product fit solution: AR and VR create virtual fitting room experiences

New technologies such as virtual and augmented reality allow customers to try on clothes and accessories digitally, addressing product fit concerns. These solutions provide a more accurate representation of how the desirable clothes and accessories will look and fit, reducing returns and increasing customer satisfaction.

Example: ASOS’s “See My Fit” feature uses augmented reality to show how clothing looks on different body types.

Establishing trust and loyalty with customers solutions:

Live Chat and Support

Real-time communication channels help establish trust and loyalty with customers. They often allow for instant problem-solving, personalized advice, and a human touch in the digital shopping experience, enhancing customer relationships and confidence in the brand.

Example: Chat functionality in Agro-Efekt’s store

Loyalty Systems

Rewards programs and personalized perks incentivize repeat purchases and foster customer loyalty. These systems can include points, exclusive discounts, early access to sales, or VIP experiences, encouraging long-term engagement with the brand.

Example: Loyalty points system in J-LIST/J-BOX store & Wishlist plugin in Folkstar’s store

Marketing automation

Automated, personalized marketing campaigns target abandoned carts and re-engage potential customers. This solution uses data-driven insights to send timely reminders, product recommendations, and incentives, effectively recovering lost online sales and improving conversion rates.

Example: Zalando uses sophisticated marketing automation for abandoned carts. They send personalized emails with product reminders, often including limited-time discounts or free shipping offers to encourage purchase completion.

Product search solution: Advanced search engine

Choosing a dedicated tool for product search significantly improves the shopping experience by browsing large amounts of data in a split second. While doing so, online shoppers can select desired parameters, such as variants, attributes, taxes, channels, and product names.

Example: Elasticsearch search engine in Planeta Huerto’s store

Returns management solution: Quick returns

A streamlined return and refund process benefits both customers and fashion companies by saving time. One effective approach is to add a feature that lets customers request refunds directly from their online accounts. This allows customers to choose which items they want to return. Store administrators can then manage these requests through an admin panel, where they have easy access to all the necessary customer and product information.

Example: Customized returns system in JAST-USA’s store

Order finalization solution: Integration with popular payment gateways and shipping providers

Offering popular payment methods and shipping choices, along with a fast, single-page checkout, makes it easier for customers to complete their purchases on eCommerce sites. While choosing payment methods and shipping options, research the popular solutions in the countries your eCommerce website operates in, for instance, BLIK in Poland and iDeal in the Netherlands.

Example: Mollie, Paypal, and Stripe integration in Artnight’s store & OnePageCheckout plugin in Clickable Automotive’s store

Benefits of having a fashion eCommerce platform

Entering the online fashion and apparel industry can be challenging, especially for the businesses that operated via physical stores so far. Nonetheless, the eCommerce sphere brings many benefits that encourage many entrepreneurs to take the first step. Let’s take a look:

Increased reach to customers

First of all, eCommerce allows fashion brands to extend their market beyond the geographical boundaries of brick-and-mortar stores. Online stores are accessible 24/7 from anywhere in the world, enabling brands to reach a global audience without the need for physical stores in every location. Additionally, businesses can leverage social media platforms like Instagram or TikTok or work with influencers who often promote various products to expand the customer base.

Lower cost of operating a business

Online retail typically involves lower overhead costs compared to traditional brick-and-mortar stores. Online operations eliminate expenses related to physical store rentals, in-store staff, and maintenance. It also allows for more efficient inventory management, reducing storage costs. These cost savings can be passed on to customers or reinvested in the eCommerce business for growth and innovation.

Ability to track customer behavior

Many eCommerce platforms provide powerful analytics tools that allow fashion brands to gather and analyze detailed data on consumer behavior. This includes information on browsing patterns, purchase history, abandoned carts, and more. Such insights enable brands to make data-driven decisions about product development, marketing strategies, and inventory management, leading to improved business performance.

Personalization of customer experience

Last but not least, online fashion retail offers perfect opportunities for personalization. By leveraging customer data and innovative AI technologies, brands can provide tailored product recommendations, personalized marketing messages, and customized shopping experiences. By doing so, customers can feel taken care of and frequently return to do more shopping.

eCommerce fashion case Study: Mytheresa

Mytheresa, a global luxury fashion retailer, began as a physical boutique in Munich in 1987 and launched its online presence in 2006. In 2022, Mytheresa broadened its high-end product range to include home furnishings and lifestyle items by introducing the “Life” category. This carefully selected collection features over 200 premium brands, showcasing renowned luxury labels like Bottega Veneta, Burberry, Dolce&Gabbana, Gucci, Loewe, Loro Piana, Moncler, Prada, Saint Laurent, Valentino, and many others.

As it grew, the company faced operational challenges with its Magento-based eCommerce platform, which struggled with scalability, slow development processes, and inefficient data management. These issues hindered their ability to meet increasing customer demands and expand effectively. To address these problems, MyTheresa transitioned to a Sylius-based solution.

This migration enabled the company to adopt a more modular architecture that vastly improved scalability, flexibility, and performance. The new system allowed for faster development, better data handling, and enhanced user experience, significantly boosting operational efficiency by quickly processing large amounts of data.

In addition, BitBag implemented many valuable functionalities, including product sale events, express checkout, multiple carts handling, advanced searching, and more.

As a result, Mytheresa was able to maintain its luxury market leadership while achieving higher growth and smoother technical operations without disrupting its revenue streams. From the technical perspective, the new platform is much more flexible, allowing for better customization and scaling according to the needs.

Mytheresa

Summary

The fashion eCommerce presents both challenges and exciting opportunities. However, the benefits often outweigh the possible issues, and the aforementioned challenges can be effectively addressed by innovative solutions available on the market.

As demonstrated by Mytheresa’s growth over the years, the eCommerce market offers many opportunities for expansion and increased profitability. The ability to reach a global audience, provide personalized shopping experiences, and keep up with fashion eCommerce trends can significantly boost a fashion brand’s success.

Interested in a personalized eCommerce strategy for your fashion brand? Check our dedicated solutions for fashion eCommerce industry.