Swedish-based online fashion retailer, Bootz AB, has recently made headlines by blocking 42,000 customers from its site due to what the company claims were excessive returns. The decision was driven by concerns over the financial impact on the company and the environmental implications of processing such high volumes of returns.
While implementing measures to deter excessive returns is not a new practice, the surge in return rates has become a cause for concern in the retail industry. Reports highlighted that customers are now making more returns than ever before. Processing these returns can be a costly endeavour for retailers, with online orders alone accounting for approximately 21 per cent of an order’s value, according to analyst Zak Stambor’s findings in a report.
In response to this trend, some retailers have adopted alternative approaches. Insider’s report indicated that certain companies are offering customers discounts or other incentives to encourage them to keep their purchases instead of returning them.
However, many customers have become accustomed to the convenience and affordability of returns, and retailers like Target and Nordstrom have capitalised on this by promoting generous return policies to foster customer loyalty. Breaking these ingrained customer habits may prove challenging for some consumers.