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Will Zara’s Return Fee Push Other Retailers to Adopt a Return Policy?



Zara is defining the parameters of e-commerce returns for the clothing industry. In May, the company announced that the U.K. customers will now be charged 1.95 pounds ($2.45) for returns at third-party drop-off points. Customers can still return online purchases at any Zara store in the U.K., free of charge. As Zara offers free in-store returns, the company has an opportunity to connect with customers by offering them a physical retail experience apart from the digital encounter. The real game-changing aspect of the return policy is the way retailers decide to market to their shoppers. Instead of promoting it as a penalty, brands can encourage the trend by offering a small discount to the consumers opting to return parcels. The fashion brand decided to charge for returns at third-party drop-off points to boost sustainable practices because it is better for products to be returned at stores than for delivery drivers to pick up small parcels from drop-off points. Due to Zara’s return policy, a number of business models might emerge centring on returns, redefining logistics for many companies.

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