Many people have turned to online shopping due to more variety online compared to in-store. And due to the pandemic, many others did the same due to non-essential shops closing.
Retailers Boohoo were one of the many online shops that saw an influx of people ordering clothing and beauty essentials online during lockdown. And thanks to their free returns and next day delivery options, it wasn't a surprise many people went this route.
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However, despite many shoppers knowing them for their stunning outfits and free returns, according an an exclusive by The Mirror, the online retail giant has "quietly introduced" a £1.99 charge for returns putting an end to their popular long-running free returns policy.
Shocked customers were met with an "updated returns policy" in the small print of the shop's app and website stating that the charge will be taken off any refund issued. In their FQA section under 'returns and refunds' the retail has written in their app: "Please note a returns charge of £1.99 per parcel will be deducted from your refund amount. Returns are FREE for premier customer; you have 28 days, from the day you receive it, to send something back."
The free returns policy made it handy for shoppers to be able to try on a variety of sizes and send them back without any worry if one size didn't fit them.
And according to The Mirror, those who have paid using by now, pay later firm's like Klarna are left with the charge to pay on their accounts. Boohoo's website states: "As per our policy, returns are chargeable therefore the outstanding £1.99 charge on your BNPL [buy now pay later] invoice would need to be covered by you."
Because of the news, shoppers have now criticised Boohoo for scrapping its free returns by introducing a £1.99 charge to send back unwanted goods. The Mirror reports Boohoo are urging people to return their items all at once given they will be charged per parcel adding ""if multiple returns are made on the same order, additional fees will apply. To save on returns cost, it's best to return your items in one parcel."
Taking to social media one said: "The difference between Boohoo and Zara with this returns fee for online orders is Zara has actual shops where there’s still no fee for returns. Boohoo is exclusively online so there’s no choice but to pay which is very regressive."
Another added: "No more shopping from @boohoo now they’ve started charging £1.99 for refunds."
"Boohoo thinking they are going to make money back by making us pay £1.99 to return stuff , when people will just not buy from them anymore and they will be loosing sales even more" wrote a third.
Boohoo Chief Financial Officer Neil Catto added: “In the UK, the returns rate is a big factor and in international it’s taking us a lot longer to get parcels to customers. Those factors still continue and we’re not expecting those to improve this year.”
Fellow online only retailer Asos' chief executive Jose Antonio Ramos Calamonte said his company currently does not charge for returns and isn’t thinking of charging "right now".
ASOS chief operating officer Mat Dunn said free returns was a "no regret" decision taken to optimise its customer proposition.
"We still believe that free returns are a core part of our offer."
A Boohoo group spokesman told The Mirror: “As the cost of shipping has increased, we’ve had to look at where we can adapt without compromising what our customers love most, the convenience of shopping with us and the great value that our brands offer.
"This has meant that we will be applying a charge of £1.99 to returns so that we can continue to offer great prices and products and do this in a more sustainable way."
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