Zara begins charging ‘online’ clothing returns in some countries

This fee for returns opens a new phase for online trading in the industry fashion. Inditex, with its brand Zara He decided to set limits before him. indentation turns. Fashion distribution group established One price for take-home or collection point in 30 markets. Inditex fees 1.95 € per turnis deducted from the amount paid. In the context of international inflation, this figure is considered manageable by Inditex, although the company’s posters announce overall price increases that are suspected to exceed the 7% average announced in the company’s latest presentation of its results. Galician multinational. Spain is currently excluded from this decision, although consumers are increasingly inclined to hoard the product, sometimes with the idea of ​​returning more than half of what is purchased. Most experts believe this trend is not slowing down and will force collection.

One of the countries where the refund fee was most recently applied on Inditex is the UK, which has the highest online penetration rate in Europe. Also where in Germany high response rates. In-store returns, which are already the majority, are exempt. The phenomenon appears to be exacerbated during colder months, when the return plague is more pronounced in countries with bad weather conditions and the average purchase receipt is higher. The competition of textile, which is derived from digital domestic companies such as Shein, increases the need to take precautions against a consumption habit that may affect the cost structure of internet sales.

Free returns have always been a major selling point for businesses. El Corte Inglés is an obligatory reference in traditional commerce, but when it comes to electronic commerce, it has been a key element in stimulating activities. and differentiation of the business from the competition.

reverse logistics

so called reverse logistics It is a headache for all companies. ambitious multi-channel approach. They know the difference between getting benefits or red maintenance numbers. In addition, any strategy embellished with the adjective of the environment can be neutralized with a high number of returns. The decision to buy recycled fabric is worthless as the return weight increases. And if the returns increase, it is because the product does not satisfy the customer.

Inditex isn’t the only one making the decision to start charging for returns. As an aggregator of textile brands, Zalando pioneered in offering free returns in a limited time in 2019. Other related firms, such as Mango, recognize returns as a tough challenge, but calibrate the risks of curbing online expansion that is strategic. Uniqlo also started charging a fee for returns last March, which is currently not valid in Spain. In some countries, returning an item by post may cost eight euros.

In 2021, Inditex realized 25.5% of its turnover through the online channel in line with its target. Mango has announced a commercial attack targeting online sales to account for 70% of total sales in the US. While profits from online sales tend to be much lower than in physical stores, 30% is most common in the fashion industry. Street stores continue to be the main stronghold of the chains.

Source: Informacion

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