In most cases, anyone who orders from online sellers can return products for free. Until now. Because the return revolution is brewing here. First companies are free!
For example, paid returns are no longer indispensable for Swedish clothing giant H&M. A test is currently underway in Norway and the United Kingdom. H&M boss Helena Helmersson (49) says in an interview with the US news agency Bloomberg, whether or not other countries are added depends on how customers react to it. It looks like the Swedish fashion giant is now testing in Switzerland. On the H&M website, customers are informed about the 4.90 francs return cost. “The amount will be deducted directly from the refund amount,” she says in the service section. However, returns are free for members of the H&M loyalty program.
Competitor Zara recently introduced fees for online returns in the UK, Ireland, Netherlands and Belgium. Something was happening in Switzerland, too. Since summer, Zara charges 2.95 francs per returned item if it is not returned at the branch but sent back through third-party providers such as the post office.
Zalando relies on free culture
Is the comeback revolution spinning around in Zalando too? The shoe and fashion giant has recently started working with a minimum order value of CHF 29.90. A Zalando spokesperson told Blick: “Free returns have been an important part of our service commitment since day one. At the same time, we work to reduce avoidable returns.” For example, that Zalando has improved size suggestions.
C&A customers may also return goods “free of charge and without reason” in the future. The same applies to orders for shoes and clothes from Digitec Galaxus, Switzerland’s largest online shopping store. Returns from other product areas are subject to a fee. For example, if a customer orders a selection of different children’s games but wants to keep only one, a spokesperson says so.
However, the majority of returns are made by fashion retailers, with returns as high as 60 percent. According to a study recently published by the Lucerne University of Applied Sciences and Arts (HSLU), on average one out of every five articles is returned here. To this end, 230 Swiss online retailers were surveyed. It also says: The simpler the return process, the more often the goods are returned.
Returns are cost drivers for companies
When it comes to returns, companies see savings potential. But as H&M executive Helmersson says, is it really just about recouping costs? Inspection and control of returns is definitely a cost factor. What is also expensive for companies: when returned goods can no longer be sold as new at the old price.
How well do the returns align with the sustainability that companies are increasingly committing to? Some online retailers are said to already exclude those who return frequently. The authors of the study at Lucerne University of Applied Sciences and Arts cannot find out who did it. In many places the idea of sustainability has to give way to competitive pressure.
Rethinking must come from the customer
Second, it still hinders large returns turnover in online retail. According to the e-commerce industry, customers will expect free service as long as the vast majority adhere to the free policy. The result of a DPD study agrees: Switzerland returns 27.1 percent of goods purchased and is therefore the clear leader in Europe.
Thomas Wozniak, 42, e-commerce expert and head of research at HSLU, does not see removing free returns as a solution to avoiding returns and shipping waste. Instead, it is important to implement measures such as better dimensional information to reduce returns.
However, according to previous research, about half of consumers plan to return the product when they place an order because they want to have different sizes and product options at home. Unless there is rethinking here, it will be difficult to change anything.