Asos, which is attempting to stem its losses, has enraged its customers by implementing a £ 3.95 returns fee effective 8th October.
Asos consumers have reacted angrily after getting an email over the weekend informing them that they have been recognised as having a “frequently high return rate” and that if they return less than £ 40 worth of items, £ 3.95 will be taken from their refund. Customers who subscribe to Asos Premier will receive free returns if they keep at least £ 15 of their orders.
The business would not specify what constitutes a high return rate, but stated that nothing had changed for the majority of its consumers.
“For a small group of UK customers with a frequently high return rate whose shopping habits make offering them unconditional free returns unsustainable, they can still get free returns when they keep £ 40 or more of their order”, Asos told the BBC.
Asos has adopted this returns fee in an effort to reduce widening losses and rising return rates, but it is not the only online fashion retailer feeling the strain. PrettyLittleThing deleted client accounts earlier this year due to a high rate of returns. It occurred shortly after PLT announced a £1.99 return fee in June. Last year, H&M implemented a similar policy, but the retailer swiftly backtracked after receiving similar criticism.
This comes after Asos sold a 75 per cent stake in the Topshop and Topman brands for £ 135 million in a new joint venture transaction with Heartland A/S, an investment and holding company that represents the interests of Bestseller owner and Asos shareholder Anders Holch Povlsen.
Asos forecasts adjusted EBITDA to be at the high end of consensus estimates for FY ’24, with revenues slightly below guidance, but all other guidance from the FY ’23 year-end remains unchanged, subject to the impact of this latest deal. A comprehensive update on its strategy and financial guidance will be provided during its full-year results presentation in the coming months.
