ASOS is making big changes by introducing a return fee in the UK, which will affect those who frequently send items back.
From October, the British online fast-fashion and cosmetic retailer will attempt to reduce its high return rates. However, this is not an uncommon challenge for online retailers.
Return fees target frequent shoppers
It can be seen as a risky move; instead of incentivizing frequent shoppers, it may come across as a punishment. However, it aims to end “frequent returns.”
Customers who keep less than $52 worth of items from their order will be charged $5 when processing their return. This strategy could make customers more conscious about what they load into their basket.
However, returns are free if they keep goods valued over $52. This policy also applies to loyalty members, though they have a lower threshold of $19 to avoid fees.
How ASOS navigates the impact
ASOS says most shoppers will continue to enjoy complimentary returns as this will only impact a small group of customers.
Ecommerce News claims that the retailer insisted on making this “necessary” move to continue offering free returns across the board. However, this is also a strategic move to manage the growing issue of high return rates, which can hurt any company’s profitability.
Return rate in the UK
The UK’s return rate is notoriously high. Studies show that up to 44% of returned clothing never gets resold.
ASOS is one of many retailers battling with returns. Many online retailers are now looking for ways to reduce the costs.
However, the BBC reports that ASOS customers have angrily reacted to the new rules.
One frequent customer told the media house that the change would make her less inclined to buy from ASOS. “The point of online shopping is that it is a risk, but you can claim all your money back if you’re unsatisfied.”
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Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
