Revolutionizing Fast Fashion: Retailers Implement Return Fees to Combat Waste

Model approach: H&M has chosen to bring in a charge for returns

Three out of four unsellable clothing items that are returned end up in landfills or are incinerated as fast fashion retailers strive to reduce the cost of processing customer returns.

To discourage customers from returning online clothing orders, fast fashion companies like Zara and Asos are implementing measures such as reducing promotional items or implementing fees for returned items.

According to Statista, only 25% of unsellable returns are recycled, with 50% ending up in landfills and 25% being incinerated.

Many items are deemed “unsellable” due to the resources and expenses required for cleaning, repackaging, and redistributing them. Some retailers also choose not to resell them if a trend or season has passed.

This research was presented to fashion industry leaders at a recent meeting organized by the British Retail Consortium. Helen Dickinson, the Chief Executive of the BRC, stated that addressing unsustainable returns would not only benefit retailers financially, but also have a positive impact on the environment.

For many retailers, the cost of the reverse logistics process makes reselling the products an unviable option, according to Professor Natascha Radclyffe-Thomas from the British School of Fashion.

‘As consumers, we often imagine that when we return something, it magically reappears on a store shelf,’ she added. However, approximately £140 million worth of clothing is sent to landfills each year. The trend is also costly for fashion retailers, with the average return cost being £10-£12 for a £20 purchase.

Consumers have become accustomed to ordering multiple sizes and colors of the same product.

To address this, retailers like Boohoo, Zara, and H&M have started implementing small charges for returns. Archie Mason, a director at investment and advisory firm True, commented: ‘If a small charge for online returns can encourage a change in consumer behavior, it is likely a positive step.

‘The returns cycle in the apparel industry is unsustainable both environmentally and financially.’

Mason also suggested investing in “digital fits,” where customers can determine if a product fits them based on data from their shopping history and size, as a way to reduce high return rates.