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End of the free returns? PLT is latest retailer to charge for returning their unwanted clothes - as experts say 'ruthless' fees of up to £4.99 push shoppers back to the high street

5 months ago 23

Free returns for online shopping could become a thing of the past as more brands look to charge their customers 'ruthless' fees for sending back unwanted items.

PrettyLittleThing became the latest outlet to cause outrage last week announcing a new charge of £1.99 for any returned items and even banning customers who have 'unusual high returns activity'.

The move sparked fury with disgruntled customers who insisted that the fast fashion chain should improve the quality and the sizing of its clothes if they want to reduce the number of exchanges.

It marks the latest in a long-line of brands who have started making customers pay for any items they return, from Zara to H&M, Sports Direct and BooHoo some charging up to £4.99.

Experts told MailOnline that while online shopping boomed as a result of the Covid-19 pandemic, retailers are now grappling with 'spiralling costs' and an competitive market that makes 'standing out from the crowd difficult'.

PrettyLittleThing customers received this email over the weekend informing them that their accounts had been deactivated due to 'unusual high returns activity'

PrettyLittleThing became the latest outlet to cause outrage last week announcing a new charge of £1.99 for any returned item 

While the online shopping levies have infuriated some customers, it could be the final push shoppers need to return to Britain's deserted high streets in their droves, consumer champions have claimed. 

Retail expert Jonathan De Mello said: 'Given low margins online and the cost of processing returns, it is no surprise that – given rising cost of sales – even online pure plays have started to charge for returns. 

'This places high street retailers in an even better position, as they can offer free returns in-store that online pure plays can't.' 

Consumer specialist writer Michael Robert added: 'Charging for returns could bring some shoppers back to physical stores. 

'Shoppers can try on and return items easily in stores without extra costs. This could help regular stores as shoppers may want to see and try products before buying. They won't worry about paying to send returns back.

But online shopping still has perks for many shoppers. They like being able to browse many items, compare prices, and shop from home. Even with return fees, some will stick to online shopping but be pickier about what they buy.'

Last year H&M announced that it was axing free online returns and introduced a £1.99 fee to stop its customers buying clothes in bulk and sending them back

Online fashion site BooHoo was one of the first to start start charging its customers to return clothes in a bid to hold back the massive cost of handling items rejected by shoppers. Customers would have a £1.99 charge deducted from their refund.

H&M has become the latest fashion giant to axe free online returns introducing a £1.99 fee to stop shoppers buying clothes in bulk and sending them back

Online fashion site BooHoo was one of the first to start start charging its customers to return clothes in a bid to hold back the massive cost of handling items rejected by shoppers 

In 2022, Zara decided to take action charging customers £1.95 to return clothes, with once again it being deducted from their refund 

Similarly in 2022, Zara decided to take action charging customers £1.95 to return clothes, with once again it being deducted from their refund.

Next shoppers also have to pay a fee of £2.50 for courier returns while Uniqlo charges the most out of any retailer, with the return fee being fixed at £2.95 per order.

A number of brands under Mike Ashley's retail empire, such as Sports Direct, House of Fraser and Matches, have also brought in return fees between £4.99 and £10, with experts warning the brand 'will cease to exist' if the levies continue.

Chartered accountant and financial adviser Polly Arrowsmith said: 'House of Fraser is ruthless with their policies. Costs to deliver, and cost to return. I am less likely to use them in future, unless I am certain that I will keep the goods. I am not going to buy on spec.'

Customers shopping on ASOS can still enjoy free returns for their items but the financial adviser warned that the online brands could follow suit.

The online retailer already charges for returns in the United States and America, leaving consumers questioning whether the UK could be next.

'ASOS will have to start charging for returns as almost six per cent of its customers return almost all goods and created huge losses for ASOS in 2023' Ms Arrowsmith added.

Customers shopping on ASOS can still enjoy free returns for their items but the financial adviser warned that the online brands could follow suit 

'Without starting to charge for returns, their business model will likely fail.' 

In 2019, ASOS even warned customers that it would start deactivating accounts if it was picking up unusual patterns of returns or suspected people were wearing products. 

Many charges were introduced in attempt to crackdown on shoppers thought to have been abusing free returns.

Over the pandemic online shopping soared, with many customers buying in bulk. In turn this saw a rise in the number of people returning items because they did not fit or were not as they appeared on a website, with some clothes being returned worn. 

Catherine Shuttleworth, retail expert and founder of Savvy Marketing, said that many customers have become 'addicted' to free deliveries and free returns.

'Charging for returns is becoming increasingly common for online shoppers. We have become addicted to free delivery and free returns as that has been the incentive used by retailers to get us to spend more cash with them,' she said.

'But the rising costs to business of collecting returns and getting them back into supply chains has lead to charges being levied on the shopper.

Some retailers still offer free returns if you return to store like Zara - but online only retailers are now charging shoppers for returns on a regular basis. 

'The challenge for the retailers is will younger shoppers in particular decide to buy less from them and return to the high street.'

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