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How Gina Tricot reduced return rates by 14% while scaling revenue
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The Brand
Founded in Sweden, Gina Tricot is a leading fashion retailer offering trend-led clothing and accessories to women in more than 30 countries. With a strong omnichannel presence across e-commerce and physical stores, the brand focuses on delivering an inspiring and accessible shopping experience.
Driven by a passion for innovation and sustainability, Gina Tricot continuously looks for smarter ways to improve its marketing performance, inventory efficiency, and profitability.
Challenge
Scaling Meta performance without increasing returns or promoting slow-moving inventory.
Gina Tricot was already using ROI Hunter to promote Best Sellers and New Arrivals while limiting spend on Poor Performers and products with low availability. By 2023, these strategies powered 95% of the brand’s dynamic ad spend.
As Gina Tricot prepared to scale investment during peak season, the team wanted to protect profit margins by reducing product returns and avoiding excessive promotion of inventory that was taking too long to sell.
Solution
Using product-level business data to prioritize more profitable inventory.
Gina Tricot connected Return Rate and Days in Stock data to its product catalog through ROI Hunter. The brand then segmented products based on their likelihood of being returned and the amount of time they had remained in inventory.
Products with very high return rates or Days in Stock were limited from promotion, allowing Meta to redirect budget toward products with stronger profitability and sell-through potential. An A/B test compared the existing product strategy against campaigns enhanced with these additional exclusions.
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“After 2.5 years of partnership with ROI Hunter, we aimed to advance further in data-driven strategies. Working together with the ROI Hunter team, we successfully reduced return rates, boosted transactions, and increased revenue across channels. We are looking forward to continuing our success together!”
Lower returns, stronger revenue, and more profitable growth.
By shifting investment away from highly returned and slow-moving products, Gina Tricot improved both marketing efficiency and overall business outcomes.
The strategy delivered:
- -14% Return Rate
- +11% ROAS
- +17% Revenue
Transactions also increased by 52% as Meta redistributed budget toward more popular and profitable products. Gina Tricot later applied the strategy to Google Performance Max campaigns, where it achieved a similar reduction in return rates.
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