Fits.me, the virtual fitting room, has announced it has raised “seven figures” from the Entrepreneurs’ Fund, a London-based venture capital fund. The investment will be used to accelerate the delivery of virtual fitting room services, as well as to provide additional sales and marketing resources to fuel Fits.me’s growth. Along with the investment, Fits.me is moving its management to London while engineering, operations, and production will remain in Tallinn and Tartu, Estonia.

While the service looks attractive to consumers, it looks even better for online clothing retailers. Without a virtual fitting room, customers are hesitant to buy online, as 1 in 4 items purchased need to be returned, mostly due to ordering the wrong size. And according to research by Morgan Stanley, not being able to assure fit is the #1 reason limiting online sales.

Heikki Haldre, co-founder & CEO, comments, “Fits.me’s technology provides two fundamental benefits to fashion e-retailers. We strengthen their business by increasing sales and reducing returns; and Fits.me enhances their brand value by increasing customer satisfaction. Simply put, the Fits.me Virtual Fitting Room is fundamental to providing superior customer service, and it increases margins.”

It is crazy to think how busy the fitting rooms are at brick-and-mortar clothing retailers while most online retailers offer no alternative. With online retailers offering free return policies, I know people who aren’t afraid to buy multiple sizes of clothing online and then return the size that doesn’t fit. It works out alright for the consumer, but I always think what a waste of time and resources it must be to ship clothing back and forth, properly re-package it, and get it inventoried so it can be sold again. Luckily, Fits.me is creating efficiency by providing a better service for shoppers.