In a bold move to curb high return rates, UK-based online fashion retailer, Asos, introduces a return fee for non-subscription customers who frequently return large quantities of goods.
A Strategic Shift in Return Policies
In an attempt to manage the high rate of returns, Asos, a leading UK online fast-fashion and cosmetic retailer, has decided to charge non-subscription customers who frequently return large amounts of goods. The company will impose a fee of £3.95 ($5.19) for returns, unless customers retain at least £40 worth of their order. This marks a significant shift from the company’s previous policy of offering free returns of unused items within 14 days.
The Impact on Subscription and Non-Subscription Shoppers
The new policy impacts both subscription and non-subscription shoppers. Customers enrolled in the company’s Premier subscription service, who frequently return items, will now have to keep at least £15 of their original order to avoid a fee. Non-subscription shoppers who regularly return large quantities will have to retain at least £40 of their orders. The company has not yet clarified the definition of a ‘frequent’ returner, but industry standards suggest it could apply to customers who return more than 90% of the items they order over an extended period.
The Battle Against High Return Rates
Asos’s decision to impose return fees comes as part of its broader strategy to reduce costs and increase profits. In November 2023, the company identified high return rates as a significant challenge in its cost-cutting efforts. The new policy is a strategic move to mitigate the financial impact of returns, but it remains to be seen how it will affect customer loyalty and overall sales.
