Daily Newsletter

22 September 2023

Daily Newsletter

22 September 2023

H&M to charge customers for return items purchased online

The retailer plans to introduce charges to more markets in the coming months.

Jangoulun Singsit September 20 2023

Sweden-based clothing retailer H&M has introduced a fee for every parcel returned by non-members either in-store or online.

According to a report by the BBC, the retailer, which is one of the leading clothing retailers across the globe, will charge £1.99 to take back items unless the items are being returned due to being faulty or incorrect.

The return fee will be subtracted from the customers’ refund and is still exempted for H&M’s free loyalty scheme members.

H&M has already introduced the return fee in a number of other countries in Europe.

The retailer plans to introduce charges to more markets in the coming months.

The Guardian quoted a spokesperson as saying: “We strive to help our customers to find the right size and fit from the outset, in order to reduce the returns rate.”

H&M is the latest retailer to charge customers for returns and follows rival retailers, including Zara, Uniqlo and Next.

In May last year, British online fashion retailer boohoo revealed plans to charge its UK customers a fee for returning merchandise.

The decision to charge customers came in response to a surge in the cost of delivering and processing returned items with increased use of the service.

Earlier this year, data provided by parcel delivery management software provider nShift revealed that 20% of items bought online are returned to retailers, costing retailers $642bn a year.

Luxury goods, digitalization, and personalization identified as key drivers of the duty-free retail market

Per GlobalData, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats.

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