Free returns: Is this goodbye?

Last week, Zara shook things up a bit when they announced plans to scrap free returns but in reality charging for returns was always on the cards for brands who don’t already, especially those in the fashion sector.

To the relief of the other retailers planning to charge for returns, Zara have made the first move. The question is, how quickly will other fashion retailers do the same and will it really impact a consumers buying decision?

Many shops and marketplaces already require consumers to pay for returns unless they are returning a damaged or faulty product. For businesses free returns can be problematic when consumers abuse the free services. It’s not only costing brands excess time and money but also negitively impacting the environment.

“One challenge merchants have recently faced, while scaling so aggressively, is how to balance the desire and competitive pressure to deliver a customer experience that includes fast shipping and free returns, with the risk of eCommerce fraud or the abuse of digital benefits such as free returns. 

“The growing volume of returns and associated abuse, including practices such as wardrobing or purchasing multiple items and returning the majority, is negatively hitting margins to the extent that merchants feel the only choice is to charge for returns and bear the high cost to the customer experience, and brand loyalty and reputation.

“In reality, there is a way to deliver both, but it requires the ability to know and trust every good user at the start of every interaction. Using technology to enable this trust, you can enable a digital journey that provides high value, competitive benefits to good customers like free shipping, and simultaneously apply policy mechanisms that combat fraudulent and abusive buyers in real time.

“In doing so, merchants can deliver a differentiated digital journey, and maintain a high customer lifetime value while eliminating risk.”

– Aaron Begner, EMEA GM at Forter, comments on Zara returns