An unknown number of PrettyLittleThing (PLT) customers have been venting their anger on X after being advised that their accounts had been deactivated by the online fashion retailer for making an excessive number of returns. This follows PLT’s earlier move to put an end to free returns and implement a charge of £1.99 per item returned which had also been met with fury.
However, there are two sides to the story, as every online merchant knows. Processing returns is labour-intensive and many consumers do not take any care when packing up and returning items, meaning that the work involved preparing them for re-sale is not cost-effective. Instead some will blatantly return items that they have worn, stained, and damaged expecting a full no-quibble refund. This attitude of ‘entitlement’ is endemic, leaving low-end brands little choice other than to sell off job lots of unsorted/damaged returns, often at less than cost, to market traders and other resellers simply to clear them off their premises.
Amal Ahmed, director of financial services and EMEA marketing at Signifyd commented: “The recent complaints on social media from PrettyLittleThing customers who found their accounts blocked due to returns further highlights a significant issue in eCommerce: managing returns effectively without alienating loyal customers. Our recent research at Signifyd shows that 76 per cent of European consumers consider return policies critical when choosing a retailer, and 94 per cent value ease of returns for a positive shopping experience.
Our findings also indicate that return behaviours vary widely, from bracketing (buying multiple sizes to find the right fit) to changes driven by flexible payment methods like Buy Now Pay Later. The rise in online shopping during the pandemic has further complicated returns management, necessitating policies that are both flexible and customer centric.”
However, margins at the lower quality end of the market simply do not support the true cost of servicing returns and many would argue that online retailers are more fully aware than ever of the negative impact this has on their overall financial performance. Now faced with mounting (often unfair) competition from the likes of Shein and TEMU, as well as from high street competitors, PLT’s action to ban certain of their customers does not seem unreasonable.
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