Case Study: How Warby Parker Used Data to Reduce Returns Warby Parker is a U.S. eyewear company known for affordable glasses with a direct-to-consumer model. Their problem? • High returns. • Unsold stock. • Mismatch between what customers wanted and what was being produced. Here’s how they fixed it: They began by collecting customer behavior data like browsing patterns, abandoned carts, past purchases, style preferences and even social media mentions. All this data was centralized into a warehouse and connected to BI dashboards for the team. Machine learning models were then used to cluster customers into groups and spot which styles and colors were trending. Using these insights, they could forecast which stock keeping units (SKUs) were most likely to sell before committing to large-scale production. Finally, they tested small product batches first and only scaled up the designs that performed well. Results: • Stockouts decreased by 30% • Overstock was reduced by 25% • Returns dropped significantly For founders: You can start small by tracking what people look at but don’t buy. Even with Google Analytics and Excel, you can find hidden demand signals that guide smarter inventory decisions. #DataAnalytics #DTC #Ecommerce #RetailInnovation #ProductStrategy #Founders #StartupGrowth #BusinessInsights
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🔎 From Discounts to Data-Driven Decisions in Fashion Retail When I worked on markdown optimization for fashion brands like Max and Splash, I realized something important: Markdowns aren’t just about clearing stock — they’re about finding the right balance between margins, customer value, and demand shifts. In fashion, inventory moves fast. Unsold stock can quickly turn into a sunk cost. But a well-planned markdown strategy can: 👕 Boost sell-through 📉 Cut down excess inventory 💰 Protect margins 📈 Free up space for new season launches What made this project exciting was building a data-driven engine that could: ✔ Separate natural sales from markdown-driven sales ✔ Understand price elasticity and cross-category effects ✔ Recommend the best price points (while removing ineligible markdowns) ✔ Help planners balance sales targets and profitability ✨ Biggest takeaway for me: When data meets retail intuition, markdowns stop being reactive discounts and start becoming a smart growth lever. Curious to know — how does your team handle markdowns in retail? #Retail #FashionTech #Pricing #Optimization #DataScience #AI
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Precision in Motion: Forecasting Demand, Not Just Stock A global contemporary fashion brand comes to us with a familiar challenge: Inventory planning still leans on Excel sheets, gut instinct, retail staff feedback, and fragmented data - systems that falter under today’s volatile demand and sustainability pressures. Buyers are being asked to do more with less: 🔹 Reduce terminal stock 🔹 Avoid missed sales 🔹 Grow revenue without discounting or profit erosion All without the luxury of long lead times or perfect information. What if inventory could be responsive by design? That’s where Future Fashion Assembly comes in. We assemble the brand, a predictive inventory AI innovator, and a buying & merchandising expert. Together, we align tech capability with fashion realities - mapping inventory pain points, managing data onboarding, and co-designing success metrics that matter. The Prototype: A real-time inventory forecasting layer integrated seamlessly with existing systems. Focused on e-commerce and retail outlets, the pilot introduces predictive replenishment and regionalised buying triggers. The Result? 🔹 From reactive to responsive 🔹 Greater visibility and leaner buys 🔹 Teams empowered to move with demand—not against it What began as a pilot became a scalable function – embedded across regions and teams as a new standard for decision-making. This is what Future Fashion Assembly enables: not just forecasting stock, but unlocking profitable opportunities. 📩 For more insights at the intersection of fashion and innovation, sign up for our newsletter: https://lnkd.in/dbM3-qJV ➡️ Plus, don’t miss your chance to learn how smarter forecasting is reshaping retail. https://lu.ma/4353i583 📅 Wed 22nd October 🕚 6:00pm CET #InventoryInnovation #FashionTech #DemandForecasting #SustainableFashion #FutureFashionAssembly
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He is the new eCom director of 1B USD revenue fashion brand. As soon as he joined, he noticed they are dependent on excel reporting The tech team is focussed on maintaining the platforms but there is no intelligence There are 10+ tools in the stack but all have different purpose Data is in silos Every team is running their own process No one knows the bigger picture Just 2 months in to the new job, the management team started looking for better ways to manage brand. His solution was to bring clarity to the process We started working with him Eventually they realized they need observability to track what is impacting revenue So we built one for them Data from 20+ sources ML algorithm that detects pattern All data flows to one place and organized The solution now tracks all the platform Tells what impacts revenue positively and negatively Tells where are orders coming from Which campaign is driving revenue offline and online Which tech update is causing problem At Optiblack we have pioneered building real time decision systems that tells what impacts revenue
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𝗧𝗼𝗼 𝗺𝗮𝗻𝘆 𝗦𝗞𝗨𝘀 𝗶𝘀𝗻’𝘁 𝗼𝗽𝘁𝗶𝗼𝗻𝗮𝗹 𝘃𝗮𝗿𝗶𝗲𝘁𝘆. 𝗜𝘁’𝘀 𝗺𝗮𝗿𝗴𝗶𝗻 𝗹𝗲𝗮𝗸𝗮𝗴𝗲 𝗶𝗻 𝗱𝗶𝘀𝗴𝘂𝗶𝘀𝗲. In most apparel assortments: — 30–50% 𝗼𝗳 𝗦𝗞𝗨𝘀 sell less than one unit per store per month — 𝗧𝗵𝗲 𝗯𝗼𝘁𝘁𝗼𝗺 30% 𝗰𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗲 𝘂𝗻𝗱𝗲𝗿 5% 𝗼𝗳 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 but drive nearly 40% of markdowns — With 20–30% 𝗮𝗻𝗻𝘂𝗮𝗹 𝗰𝗮𝗿𝗿𝘆𝗶𝗻𝗴 𝗰𝗼𝘀𝘁𝘀, low-velocity SKUs don’t just sit idle, they actively eat margin The 𝘰𝘭𝘥 𝘱𝘭𝘢𝘺𝘣𝘰𝘰𝘬 thought more SKUs meant more choice. The 𝘯𝘦𝘸 𝘱𝘭𝘢𝘺𝘣𝘰𝘰𝘬 recognizes the long tail for what it is: a tax on profitability, agility, and storytelling. 𝗧𝗵𝗲 𝗦𝗞𝗨 𝗥𝗮𝘁𝗶𝗼𝗻𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗣𝗹𝗮𝘆𝗯𝗼𝗼𝗸 𝗶𝘀 𝘀𝘂𝗯𝘁𝗿𝗮𝗰𝘁𝗶𝗼𝗻 𝗮𝘀 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆: — Cut the clutter of consistently low performers — Consolidate overlaps that differ in form, not function — Reinvest in high-velocity core products and trend-right bets — Use POS and returns data to separate true customer preference from costly noise And the brands that execute this well are proving the payoff: • Levi Strauss trimmed less-popular styles and lifted operating margin from 1.5% to 7.5% (Reuters) • Hanesbrands cut 50% of its SKUs vs. 2019, lowering inventory 28% and boosting gross margin to nearly 40% (WSJ) • Ralph Lauren refocused on core hero products, now 70% of its line, driving margins above 68% (Vogue Business) • Faherty cuts 50–100 SKUs each season based on consumer sentiment, doubling sell-through rates (MakerSights) We’ve seen it firsthand too: designing less, with more intent, unlocks margin, accelerates response, and reduces waste. 𝗦𝗼𝗺𝗲𝘁𝗶𝗺𝗲𝘀 𝘁𝗵𝗲 𝗯𝗼𝗹𝗱𝗲𝘀𝘁 𝗴𝗿𝗼𝘄𝘁𝗵 𝗺𝗼𝘃𝗲 𝗶𝘀 𝘀𝘂𝗯𝘁𝗿𝗮𝗰𝘁𝗶𝗼𝗻. 📘 𝘞𝘦𝘦𝘬 5 𝘰𝘧 𝘵𝘩𝘦 8-𝘱𝘢𝘳𝘵 𝘔𝘢𝘳𝘨𝘪𝘯 𝘜𝘯𝘭𝘰𝘤𝘬𝘦𝘳𝘴 𝘴𝘦𝘳𝘪𝘦𝘴: 𝘱𝘳𝘢𝘤𝘵𝘪𝘤𝘢𝘭 𝘭𝘦𝘷𝘦𝘳𝘴 𝘵𝘰 𝘥𝘳𝘪𝘷𝘦 𝘱𝘳𝘰𝘧𝘪𝘵 𝘸𝘪𝘵𝘩𝘰𝘶𝘵 𝘢𝘥𝘥𝘪𝘯𝘨 𝘱𝘳𝘦𝘴𝘴𝘶𝘳𝘦. Next week: 𝘛𝘩𝘦 𝘋𝘢𝘵𝘢 𝘊𝘰𝘮𝘱𝘢𝘴𝘴. 𝘞𝘩𝘺 𝘪𝘯𝘵𝘦𝘨𝘳𝘢𝘵𝘦𝘥 𝘥𝘢𝘵𝘢 𝘣𝘦𝘢𝘵𝘴 𝘴𝘪𝘭𝘰𝘦𝘥 𝘥𝘢𝘴𝘩𝘣𝘰𝘢𝘳𝘥𝘴 𝘦𝘷𝘦𝘳𝘺 𝘵𝘪𝘮𝘦. Where do you see hidden SKU bloat in your business, and what would it free up if you cut it?
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They had momentum. Revenue doubled. A national retailer signed on. But behind the scenes? Returns were surging—and no one knew why. The team was buried in spreadsheets trying to piece together product-level return data. The fix? 📊 A unified, SKU-level dashboard. 🧵 A pattern emerged: plus-size shoppers returning multiple sizes. 🛠 A new fit guide + targeted product page updates. ✅ Result: 12% drop in returns in one quarter. That’s the power of analytics—when it’s connected to action. Want to see the full strategy that saved her margins? 👉 https://lnkd.in/gWaDXTpH #DataWins #ApparelAnalytics #AmericanMade #DTCFounder
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Resale pricing is moving from guesswork to science. Retailers are using AI and predictive tools to forecast recovery, set fair prices, and bundle stock for maximum return. The aim is no longer just clearing inventory but extracting value. Data shows which factors drive recovery: handbags outperform general apparel, while outdoor furniture achieves higher returns when sold in tighter SKU groups. Returns are shifting from a cost centre to a revenue stream. But there’s a catch. If discounted stock leaks into the wrong channels, it damages brand equity and undercuts primary market pricing. The challenge is balancing recovery with protection. For pricing teams: Apply predictive models, run controlled tests, and measure resale outcomes with the same rigour as core sales. Treat secondary markets as part of your pricing architecture, not an afterthought. For executives: Reframe returns as an asset. Invest in data-driven resale platforms, but embed guardrails that protect brand strength while improving profitability. Sources: https://lnkd.in/gXutue6p https://lnkd.in/g5MewVqM https://lnkd.in/gv2F73cS #pricingnews #taylorwellspricing #resalepricing
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Resale pricing is moving from guesswork to science. Retailers are using AI and predictive tools to forecast recovery, set fair prices, and bundle stock for maximum return. The aim is no longer just clearing inventory but extracting value. Data shows which factors drive recovery: handbags outperform general apparel, while outdoor furniture achieves higher returns when sold in tighter SKU groups. Returns are shifting from a cost centre to a revenue stream. But there’s a catch. If discounted stock leaks into the wrong channels, it damages brand equity and undercuts primary market pricing. The challenge is balancing recovery with protection. For pricing teams: Apply predictive models, run controlled tests, and measure resale outcomes with the same rigour as core sales. Treat secondary markets as part of your pricing architecture, not an afterthought. For executives: Reframe returns as an asset. Invest in data-driven resale platforms, but embed guardrails that protect brand strength while improving profitability.
Resale pricing is moving from guesswork to science. Retailers are using AI and predictive tools to forecast recovery, set fair prices, and bundle stock for maximum return. The aim is no longer just clearing inventory but extracting value. Data shows which factors drive recovery: handbags outperform general apparel, while outdoor furniture achieves higher returns when sold in tighter SKU groups. Returns are shifting from a cost centre to a revenue stream. But there’s a catch. If discounted stock leaks into the wrong channels, it damages brand equity and undercuts primary market pricing. The challenge is balancing recovery with protection. For pricing teams: Apply predictive models, run controlled tests, and measure resale outcomes with the same rigour as core sales. Treat secondary markets as part of your pricing architecture, not an afterthought. For executives: Reframe returns as an asset. Invest in data-driven resale platforms, but embed guardrails that protect brand strength while improving profitability. Sources: https://lnkd.in/gXutue6p https://lnkd.in/g5MewVqM https://lnkd.in/gv2F73cS #pricingnews #taylorwellspricing #resalepricing
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Turning Data Into Design Decisions Great collections aren’t built on guesswork — they’re built on insight. At Annel Apparels, we use data to guide every sourcing choice: 📊 Trend analysis for EU market preferences 🧵 A/B tested samples to refine fit and finish 🚀 Agile production cycles to respond to buyer feedback We don’t just make garments — we make informed, market-ready products. #DataDrivenFashion #TrendInsights #EUReady #SmartSourcing #AnnelApparels
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Fashion retailers often overlook the connection between sales and inventory! 📉✨ A solid auto replenishment system is essential—without it, it’s like navigating the seas without a compass. 🧭 Plus, managing open-to-buy (OTB) can be a challenge if not handled properly. However, implementing streamlined processes and leveraging real-time insights can revolutionize operations. 📊💡 This leads to smarter markdowns and improved profit margins. Let’s embrace smarter inventory management for a thriving retail experience! 👗💰 #RetailTips #InventoryManagement #FashionBusiness #retail #planning #fashion #ml #ai #demandforecasts #forecast #retailplanning #inventorymanagement #unifeiddata
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Holiday sales bring excitement and major stock challenges. From demand unpredictability to size & colour mismatches, poor planning can cost retailers millions. ✅ Learn how AI-powered tools like StyleMatrix™ solve Christmas stock planning, enhance stock visibility, and ensure profitability. 👉 Read the full blog here: https://lnkd.in/gBANvmAk #RetailTech #AIinRetail #InventoryManagement #HolidaySales #StyleMatrix
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