H&M starts charging shoppers for online returns

Customers must now pay £1.99 to return goods they have bought online from H&M. Returns can be a headache for retailers as it takes a long time for warehouse employees to process stock.

The rise of online shopping occurred during the pandemic but it has also resulted in a rise in customers trying to return goods that don’t fit or not what they want.

Analysts say other retailers are likely to follow H&M in charging for returns.

“It’s interesting that companies seem to be doing it by stealth, but it’s a sensible thing to be doing. It makes economic sense, as it discourages shoppers from bulk buying online products then returning the majority of them. That’s been a real problem for companies,” said retail expert and analyst Jonathan De Mello.

He does however feel that there might be a backlash from some segments notably those with disabilities who rely on online shopping.

The H&M website clearly states that shoppers will not be charged the £1.99 fee if items are faulty. In addition members can return items for free which encourages loyalty schemes.

“Particularly in the cost of living crisis, retailers need to work harder to retain customers, as people are keen to shop around for the best deals. Loyalty is fickle, but if you can provide clear incentives, such as free returns, then you’re more likely to retain your customers,” said De Mello.

Another big brand that also started charging customers is Zara which started this last year. Customers of the popular outlet must pay £1.95 to return clothes while other brands like Uniqlo and Next are already charging for the same.

Zara spokesperson told the BBC that this only applies to products being returned at third party drop off points. Customers can return online purchases at any Zara store in the UK free of charge which is the common method most customers choose.

Mintel associate director of retail research Nick Carroll says free in store returns helps drive people back into the shops. Carroll says it is more effective cost wise and then there are higher chance of impulse purchases once people start browsing in store.

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