Fee returns… H&M shoppers in the UK now have to pay $2.50 to return their ribbed tanks and mock turtlenecks online and in stores. The Swedish retailer has plans to tighten its return policy in other markets too (it’s already started in other European countries). In the US, the fast-fashion giant (the second largest after Zara) charges $6 for online returns, but IRL is free. H&M loyalty members who spend $500/year can still make online returns at no cost.
Trending: A cascade of retailers have gone from free → fee returns in recent years, including Zara, Boohoo, TJ Maxx, Dillard’s, and Kohl’s, charging as much as $11 to send stuff back. At the same time, return windows have been shrinking.
Even Amazon added a $1 fee in April to drop packages off at UPS when there’s an Amazon-owned drop-off alt like Whole Foods nearby.
Ordering five white tees… with every intention of returning four. Last year US shoppers returned nearly 17% of the merch they bought — $816B worth. Retailers don’t just lose out on the revenue they’d earn if customers kept their purchases; they also take a hit on shipping costs, which are rising as gas prices and wages surge. And they have to maintain a bloated inventory to fulfill (likely to be returned) large orders, and to restock what gets sent back.
Freebies work till they don’t… Free returns were introduced to encourage online shopping. It worked… maybe too well. Over time, customers adapted their shopping habits to depend on returns, using their bedrooms as fitting rooms. Now retailers looking to tighten budgets may follow H&M’s lead in trying to discourage bulk buying. But those that keep free returns could win over customers who want to order three sizes of the same shirt.