H&M to increase UK return fees

Swedish fashion giant H&M is joining the widening group of retailers increasing their return fees in a bid to tackle alleged abuse of the policy.

From February 3, 2025, the company will be increasing its fee on returned items from 1.99 pound to 2.95 pounds, which will be deducted from refunds made by all UK customers. The fee will not be applied to faulty items or returns made to H&M stores.

It joins the likes of Asos and Boohoo in implementing stricter measures on returns to help sway what many are reporting as “abuse” towards more lenient policies.

Speaking to FashionUnited, Nikhita Hyett, general manager EMEA at e-commerce fraud protection platform Signifyd, said managing returns without alienating loyal customers has become a significant issue in e-commerce, particularly with ease of returns being a deciding factor in certain purchases.

Hyett stated: “We’re seeing real variance in returns behaviour, from bracketing and wardrobing to taking advantage of flexible payment methods like Buy Now Pay Later. The rise in online shopping over the last few years has further complicated returns management, necessitating policies that are both flexible and customer-centric.

“Yet, among serial returners, there are genuine customers who simply want to return or exchange a product without penalisation (like being charged to do so). Retailers need a more nuanced, data-driven approach to ensure that good customers are not unfairly targeted.”

Reactions to the implementation of stricter returns policies have been mixed among consumers, however. Boohoo-owned PrettyLittleThing, for example, opted to reverse its stricter returns policies just months after implementing them due to backlash from its customer base.