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Boohoo is latest company to introduce online returns charge

By Huw Hughes

13 Jul 2022

Business

Image: Boohoo image gallery

Customers of fast fashion giant Boohoo will now have to pay to return online orders.

The company now charges shoppers 1.99 pounds per parcel which will be deducted from their refund amount.

Free returns have been a cornerstone of the fast fashion industry, with customers often buying multiple items to try on at home before sending back those they don’t want.

According to payment provider Paymentsense, 78 percent of customers are more likely to purchase from a brand if they offer free returns.

But the time consuming and expensive process of accepting free returns can be a headache for fashion companies.

That has been further compounded since the outbreak of the pandemic, which accelerated consumers’ shift to online channels.

Consequently, an increasing number of companies have announced they will be introducing return fees to cut costs.

In May, Inditex announced it was introducing a charge of 1.95 pounds for customers to return online orders at its Zara brand. Next and Uniqlo have also recently made similar announcements.

Boohoo said in June that returns rates “increased significantly” in the second half of the year and were ahead of both expectations and pre-pandemic levels.

Boohoo