Inditex owned fashion brand Zara is set to charge its customers who buy online with a £1.95 levy when making returns. The sum will be deducted from refunds and is on a per-item basis, not per parcel. A 30-day return period applies. Returns of items bought in-store and returned to the same store, or to one nearby, will not incur a levy.
Zara is making the move having reviewed the very high incurred costs of processing returns from online customers who are buying items in several sizes and/or colourways knowing they will be returning at least one item. Whilst Zara has not alluded to the poor condition of some returns that are being made, other retailers have identified a growing problem with customers returning items that have clearly been worn, which are not able to be returned to stock, and are effectively having to be written off.
Online retailers including boohoo and ASOS have seen margins severely impacted by the ongoing problem created by ‘serial’ returners and it is expected that many others will be watching Zara closely.
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