Fashion giant H&M has joined the ranks of retailers charging customers for returning items purchased online. Shoppers will now incur a £1.99 fee for returning
parcels, whether in-store or online, with the amount deducted from their refund. However, H&M members will still enjoy free returns.
Other competitors like Zara, Boohoo, Uniqlo, and Next have already implemented charges for online returns.
An H&M spokesperson confirmed that the change was introduced during the summer.
During the pandemic, online shopping experienced significant growth, resulting in a surge in returned items due to issues such as fit or unmet expectations.
For retailers, processing returns can be an expensive affair. Analysts predict that other retailers may follow H&M's lead in charging for returns.
"It's interesting that companies seem to be doing it quietly, but it's a sensible thing to be doing," noted retail analyst Jonathan De Mello. He explained that it makes economic sense as it discourages bulk online purchases with high return rates, which have posed a challenge for companies.
De Mello also emphasized the environmental impact, as fewer postal returns translate to reduced delivery vehicle traffic.
While some customers might react negatively, he believes most will understand the necessity for this decision. However, he cautioned that it could provoke backlash from certain groups, such as people with disabilities who rely on online shopping. He suggested that H&M could offer complimentary membership to registered disabled individuals.
H&M's website specifies that the £1.99 fee will not apply to faulty or incorrect items. The company encourages customers to take note of this when registering returns. H&M members will continue to enjoy free returns.
De Mello pointed out that this aligns with the broader trend in retail towards loyalty programs. Given the current cost of living crisis, retailers need to make greater efforts to retain customers, as people actively seek the best deals. By providing clear incentives like free returns, retailers can enhance customer loyalty. Photo by Loudrocksurfer at en.wikipedia.