H&M’s revised return policy, effective February 3rd, 2024, has sparked considerable customer dissatisfaction. The clothing retailer is increasing its online return fee from £1.99 to £2.95 per parcel. This change impacts all customers, including those previously exempt from fees due to membership in H&M’s loyalty program. The move has been met with criticism on social media platforms, with many customers questioning the normalization of return fees and expressing concerns about the impact on online shopping behavior. The core argument against the fee centers around the inability to try on clothes purchased online before delivery, making returns a necessary part of the online shopping experience. Some customers have threatened to cease online purchases from H&M altogether due to the increased cost of returns.
This decision by H&M follows a broader trend amongst retailers grappling with the increased costs associated with online returns. The surge in online shopping during the pandemic led to a significant rise in returns, as customers purchased multiple items with the intention of returning those that didn’t fit or meet their expectations. Retailers like ASOS have already implemented stricter return policies, deducting fees from refunds if the value of kept items falls below a certain threshold. Zara, Boohoo, and Next are among other retailers who have introduced or increased return fees in recent times. H&M itself introduced its initial return fee in September 2023.
The company justifies the fee increase by citing the need to align with “local market fee levels” and emphasizes its efforts to reduce return rates through tools like size recommendation features. H&M also highlights the environmental benefits of fewer returns, pointing to decreased transportation needs. They point to the initial introduction of return fees for non-loyalty members as having successfully reduced return rates, leading to the decision to extend the fee to all customers. H&M maintains that returns to physical stores remain free of charge, offering an alternative for those seeking to avoid the fee. Additionally, returns of faulty items are not subject to the fee.
This trend of charging for returns reflects a wider shift in the retail landscape. The cost of processing and handling returns, including shipping, logistics, and restocking, has become a significant burden for retailers. The increased volume of returns exacerbates these costs, prompting companies to seek ways to mitigate the financial impact. This shift also reflects a growing awareness of the environmental impact of returns, with the transportation and processing of returned goods contributing to carbon emissions. By introducing or increasing return fees, retailers aim to encourage more mindful purchasing decisions, reducing the overall volume of returns.
Beyond H&M, other retailers are adopting similar strategies. Nobody’s Child, a bohemian clothing brand, has announced it will start charging for online returns, deducting the fee directly from the refund amount. They also implement a per-item return fee structure, discouraging bulk returns. Debenhams has also implemented return charges, citing increased delivery and processing costs as well as higher return rates. These examples further illustrate the growing prevalence of return fees in the retail sector.
Consumer rights regarding returns are determined by the location of purchase and the reason for the return. For online purchases, the Consumer Contracts Regulations provide a 14-day cancellation period from the date of receipt, followed by another 14 days to return the item after notifying the retailer. Faulty items, regardless of where they were purchased, can be returned for a full refund within 30 days of receipt. While retailers are not legally obligated to offer specific return policies beyond these legal requirements, many do so to enhance customer service and build brand loyalty. However, once a retailer establishes a return policy, they are bound to uphold it. It remains crucial for consumers to understand their rights and the specific return policies of individual retailers to avoid unexpected charges and ensure a smooth return process.