AI try-ons promise fewer returns — can startups like Catches actually fix fashion’s “silent killer”?

The problem: returns are bleeding retailers

Online shoppers know the drill: it looks great in the photo, then it pinches, sags or simply hangs wrong. Retailers call returns a “silent killer.” The U.S. National Retail Federation estimated that 15.8% of retail sales were returned in 2025 — about $849.9 billion — and online returns jumped to 19.3%. Gen Z is a big part of the story: shoppers aged 18 to 30 averaged nearly eight online returns per person last year. Returns aren’t just an annoyance; they eat margins, create operational headaches and pile on environmental costs. Who wouldn’t want a fix?

Startups bringing virtual try-on to the front lines

A growing crop of AI startups says they can help. It has been reported that these apps let shoppers create digital twins and preview garments with realistic draping and motion, cutting uncertainty before checkout. Catches is one high-profile entrant. Founder Ed Voyce told CNBC the platform offers “mirror-like realism” and models fabric physics rather than just rendering pretty pictures; the app went live last month on luxury brand Amiri’s site for a limited range. Voyce — whose startup is backed by LVMH’s Antoine Arnault and built on Nvidia’s CUDA platform — argues the recent leap in generative AI and cloud rendering finally makes virtual try-on commercially viable.

Why retailers are paying attention

This isn’t just cool tech. Returns are expensive: most returned goods don’t make it back to shelves and processing can cost more than the refund. “Figuring out how to proactively use returns and then how to minimize them can be a meaningful driver of business and profitability,” Guggenheim’s Simeon Siegel told CNBC. Retailers are testing a mix of solutions — tech like virtual try-on, more granular sizing, charging for return shipping, or new incentives — because consumers now expect free returns even as the economics behind them fray. Can an app replace trying things on in-store? Not yet. But if it nudges behavior and lowers uncertainty, that nudge could add up to real savings.

The catch (pun intended) and the bigger picture

The emotional center of this story is simple: shoppers want confidence; retailers want margins. Virtual try-on promises to connect those dots, and startups from Catches onward are sprinting to prove ROI. Expect a messy rollout — integration costs, accuracy debates, and user trust to win — but also the kind of rapid iteration that has upended other retail tech trends in recent years. If these tools work the way founders promise, returns might finally stop being the industry’s quiet money pit. If not? Well, fashion’s notoriously unforgiving.

Sources: cnbc.com