Boohoo will charge customers £1.99 to return unwanted items

The retailer joins brands like Zara, Sports Direct and Next

(AFP via Getty Images)

Boohoo has become the latest fashion brand to introduce fees for customers wanting to return an item.

The fast fashion giant will charge customers £1.99 for each parcel that gets returned to its warehouse.

The company included the change to its policy on its information page on returns, and informed customers: “Please note a returns charge of £1.99 per parcel will be deducted from your refund amount. Returns are free for premier customers.”

Premier customers pay £12.99 a year for unlimited next-day delivery and free returns.

It comes after Boohoo reported in May that the rate of returns had soared so high that it led to sales falling in the three months to May 2022, compared with a year ago.

Boohoo told Retail Gazette that it had to look for ways to make up for the increase in the cost of shipping.

“This has meant that we will be applying a charge of £1.99 to returns, so that we can continue to offer great prices and products and do this in a more sustainable way,” it told the publication.

Earlier this year, Zara also began charging customers £1.95 to return items purchased online.

Similar policies are already in place at retailers such as Uniqlo, Sports Direct and Next.

Industry analysts believe more major online retailers will follow suit, as fashion brands struggle to keep up with increased costs elsewhere.

Al Gerrie, CEO of retail returns specialist ZigZag Global, said: “There’s no such thing as a free return, there’s always someone who has to pay for it and given the current levels of inflation, supply chain issues, increased labour shortages and fuel surcharges, it is understandable that retailers would need to find a way to recoup some of the cost.

“Especially as, post-pandemic, the number of online returns has increased significantly, as such, so has the cost to retailers.”

Gerrie pointed out that expecting free returns was unique to British shoppers and is a “luxury that is not offered in many other European countries”.

“Retailers are starting to see a significant impact on profits from the increased cost and frequency of returns,” he added.

“Having said that, there are other great options that retailers can offer their customers to encourage repeat purchase and loyalty.

“So, whilst I expect to see more retailers charging for online returns, we will also see an increase in choice, with more retailers exploring free exchanges or return to gift card to provide shoppers with different benefits and perks.”

Tara Flynn, co-founder of money saving website Choose Wisely, agreed that many clothing retailers will follow in Boohoo and Zara’s footsteps.

“With a recession looming on the horizon, many young consumers have fallen out of love with fast fashion and are turning to second-hand clothing as a way to help beat rising inflation,” she said.

“Boohoo only mention the change to their returns policy in small text on their product or help pages. Brands must be transparent with their customers when introducing changes that are likely to be unpopular to keep their customers loyal. There’s no point in pulling the wool over their customer’s eyes.”