H&M is no longer offering unlimited free delivery to members of its loyalty program. The global retailer offers loyalty clubs in 16 of its 71 markets to offer incentives such as free delivery. However, it is now re-introducing delivery fees for small online orders to minimize logistics costs and restore profitability.

Under the new plan, loyalty members will be classified into two tiers depending on how many points they've earned through shopping from H&M. Those in the higher tier, or the plus level, will receive free deliveries for all purchases.

Members who haven't made enough H&M purchases to fall into the higher tier will remain in the "base" level. These members will have a cap on how many free deliveries they receive. Base members will need to meet a spending minimum per order to receive free delivery. For example, in Germany, base member shoppers must spend at least 25 euros for free delivery, and Swedish members at least 200 Swedish crowns.

“We have a lot of logistics around the customers that shop online,” Samuel Holst, head of the H&M Club told Reuters. While he did not share how much H&M expects to save from this change, he commented, "We want to keep up the growth pace we've had so far, and increase it this year."

 

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