Fast fashion juggernaut H&M has taken a significant step by discontinuing free returns for online purchases in the United Kingdom. Starting now, customers will be required to pay a £1.99 fee for both parcel and in-store returns. However, members of H&M’s customer platform can breathe a sigh of relief as they are exempt from this fee, and it remains free to register online.
This strategic move comes after H&M’s CEO, Helena Helmersson, hinted at the possibility of introducing returns charges last autumn as part of the company’s ongoing efforts to cut operational costs.
H&M now joins the ranks of retail giants such as Zara and Uniqlo who have also reconsidered their return policies. The surge in shipping costs since the pandemic has put substantial pressure on online retailers to reevaluate their approach to returns. Logistics experts have observed that, on average, online fashion purchases experience a return rate of approximately 20 to 30 percent, a significantly higher figure compared to in-store transactions.
To mitigate the escalating expenses associated with reverse logistics, retailers have explored various strategies. These include partnering with return aggregation services like Happy Returns and Narvar, increasing the free shipping threshold to discourage impulse purchases, and adopting fit technology to enhance the accuracy of online sizing.
However, the growing consensus appears to favor the direct implementation of return fees as the most effective means of offsetting costs.
The introduction of a returns fee by H&M marks a potential turning point in the retail industry. For nearly two decades, online retailers have vied to provide increasingly affordable and convenient shopping experiences. H&M’s decision signals a shift away from this trend and prompts us to contemplate the future of return policies in the world of fashion e-commerce.
As the retail landscape continues to evolve, it remains to be seen whether other industry leaders will follow suit in introducing similar return charges and how consumers will respond to this changing paradigm in online shopping.