Myntra is reducing return fee significantly which is currently between Rs. 199 and Rs. 299. The leading online fashion retailer is doing this experiment, ‘return-as-a-service’ and over the next few weeks will experiment with a fee of Rs. 15-30 per return after these high return-rate customers exhaust a set amount of free returns.
Just a few months back Myntra instituted a flat ‘convenience fee’ of between Rs. 199 and Rs. 299 on every order made by customers with a high rate of product returns. It is being said that these customers usually made twice as many or more product returns as the average customer.
As per industry observations, between 25 per cent and 30 per cent of apparel products purchased online are returned. Issues like fitting and size measures being different across brands, or differences in colour, texture, or design between online representations and actual products are a few of the major reasons for returns. And it has a very negative impact on e-commerce companies as logistics is the biggest cost for them.
Myntra feels that the high return charge per order may negatively impact user behaviour, not only among these users but also in their wider circle, although this is a small percentage of the overall cohort, it is still a sizable number of people.
The company said that “In our endeavour to enhance customers’ shopping experience, we are trying to solve how customers can choose to make more informed shopping decisions and minimise their returns.”
