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AI virtual try-on tech helps retailers cut costly online returns and boost profits.

Market News
05 Apr 2026
CNBC
View Source
Bullish
pluang ai news

Retailers face billions in losses from online returns, driven by fit uncertainty. New AI virtual try-on technologies, like those from startup Catches, allow customers to see realistic clothing fits before buying, reducing returns and increasing sales. This tech is gaining traction among brands like Amiri, Zara, and ASOS, helping protect margins amid rising costs and consumer price sensitivity. While not perfect, AI tools are expected to significantly lower return rates and improve profitability in fashion retail.

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