ASOS, the UK online fashion retailer, has announced a change to its returns policy in the UK, the Guardian reported.

From 8 October 2024, customers who frequently return large amounts of goods will be charged a ￡3.95 ($5.15) fee unless they keep a minimum of ￡40 worth of their order.

This update applies to Asos's fair use policy and aims to address the high return rates that have impacted the company's profits.

The policy change affects both regular customers and those subscribed to ASOS' Premier service.

Premier subscribers will need to retain at least ￡15 worth of items to avoid the return fee.

ASOS has not specified a precise threshold for what constitutes a 'frequent returner', but industry standards suggest it could be someone who sends back more than 90% of their purchases over time.

In a message to affected customers, ASOS stated: "As part of a small group of customers with a frequently high returns rate, you’ll now only get free returns when you keep ￡15 or more from your order. If you keep less than ￡15 from your order, we’ll deduct ￡3.95 from your refund."

The decision comes after ASOS reported a significant financial impact from the behaviour of a small percentage of its customer base.

Last year, approximately 6% of shoppers were identified by the company as frequently ordering discounted items and returning most of them.

The trend of charging for returns is growing among online retailers as they grapple with the logistical and environmental costs of handling and disposing of returned items.

In September last year, Sweden-based clothing retailer H&M also introduced a return fee of ￡1.99 for nonmembers, unless the items are being returned due to being faulty or incorrect.

"ASOS to introduce new fee for frequent returners " was originally created and published by Retail Insight Network, a GlobalData owned brand.

 

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