The verdict in three sentences
For an established Manchester fashion brand with stores but a weak online channel, a properly scoped online store costs around GBP 28,000, launches in 10 weeks and can reach 160 orders a week by month 6 with a GBP 68 average order value. The numbers only work once returns are priced in: at a 25% return rate, returns handling cuts contribution per order by roughly a third. In this worked example, the investment pays back during month 6, and the brand then earns over GBP 11,000 of monthly contribution online.
This is a fictional but representative company, built from 2026 UK estimates. No real client is described, and the figures are there so you can test the logic of your own project.
Starting point and budget
The fictional brand, Northern Thread, sells womenswear and knitwear through two stores in Manchester and Leeds. Its old online shop runs on an outdated theme, converts poorly on mobile and handles returns by email. Online sales sit at about 40 orders a week.
| Budget line | Scope | Cost | Share |
|---|---|---|---|
| Design and build | Catalogue of 220 products, size guide, account area | GBP 17,500 | 63% |
| Returns portal and carrier integration | Self-service returns, labels, refund rules | GBP 3,200 | 11% |
| Payments and checkout | Cards, wallets, pay in three instalments | GBP 1,300 | 5% |
| Product photography | 220 products, flat lay and on model | GBP 3,500 | 12% |
| Launch campaign | Paid social and search for month 1 | GBP 2,500 | 9% |
| Total | GBP 28,000 | 100% |
The 10 week plan: 2 weeks of discovery and design, 5 weeks of build and catalogue migration, 2 weeks of testing with real orders and returns, 1 week of launch.
Returns: the cost line that decides profitability
UK consumers have a 14 day cancellation right on most online purchases under the Consumer Contracts Regulations, and fashion return rates online commonly run between 20% and 30% (2026 estimate). The brand chose a clear returns policy rather than hiding it.
| Returns policy option | Return rate (estimate) | Cost per return | Effect on conversion | Choice |
|---|---|---|---|---|
| Free returns, 30 days | 28% to 32% | GBP 8 to 10 | Highest | Rejected |
| Free returns, 14 days | 25% to 28% | GBP 8 | High | Rejected |
| GBP 2.95 return fee, refunds to card | 22% to 25% | GBP 5 net | Slightly lower | Retained |
| Free exchange, paid refund | 20% to 23% | GBP 6 | Neutral | Tested in month 4 |
| No self-service portal | Similar, more support tickets | GBP 12 with staff time | Low trust | Previous setup |
The returns portal paid for itself quickly: support time spent on returns dropped from 25 hours to 8 hours a week, and the fee kept the return rate around 25%.
Results before and after
| Metric | Before | Month 1 | Month 3 | Month 6 |
|---|---|---|---|---|
| Orders per week | 40 | 40 | 100 | 160 |
| Average order value (excl. VAT) | GBP 61 | GBP 64 | GBP 66 | GBP 68 |
| Mobile conversion rate | 0.9% | 1.3% | 1.7% | 2.1% |
| Return rate | 29% | 27% | 25% | 25% |
| Monthly online revenue (excl. VAT) | GBP 10,500 | GBP 11,000 | GBP 28,400 | GBP 46,800 |
| Support hours on orders and returns per week | 25 | 18 | 11 | 8 |
Mini case study
Here is the payback calculation for Northern Thread, an illustrative example. With a 60% gross margin on GBP 68, each order generates GBP 40.80, but 25% of orders are returned, so retained margin is about GBP 30.60. Subtract GBP 5.50 of fulfilment, about GBP 1.36 of payment fees and GBP 2 of average returns handling: contribution is about GBP 21.74 per order. Fixed monthly costs are GBP 3,350 (GBP 3,000 of ads and GBP 350 of support).
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- Month 1: 172 orders, net contribution GBP 389.
- Month 3: 430 orders, net contribution GBP 5,998.
- Month 5: 602 orders, net contribution GBP 9,737, cumulative GBP 27,186.
- Month 6: 688 orders, net contribution GBP 11,607, cumulative GBP 38,793, above the GBP 28,000 investment.
The project pays back during month 6, then adds around GBP 11,600 of monthly contribution.
FAQ
Is GBP 28,000 realistic for a 220 product fashion store?
Yes for a mid-complexity build with returns portal and carrier integration. A headless build or a wholesale portal would push the budget towards GBP 45,000 to 70,000.
What return rate should a UK fashion brand plan for?
Plan for 20% to 30% online, depending on fit consistency and policy. Each point of return rate removed adds roughly GBP 0.40 of contribution per order in this example.
Should returns be free?
Free returns lift conversion but raise returns. A small fee of about GBP 3, paired with free exchanges, often keeps conversion high while holding the rate near 25%.
How fast can orders grow after launch?
Here, from 40 to 160 orders a week in 6 months, with GBP 3,000 a month of ads and an existing store customer base. A brand without stores would usually need 9 to 12 months.
What does the store cost to run?
Budget support at GBP 300 to 500 a month, payment fees of about 2% and your ad spend. In this case, fixed running costs are GBP 3,350 a month.
Let's scope your project. Share your product count, current return rate and target launch date, and we will propose a scope, an indicative budget and a timeline. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.