Customers who return 'too many' items can have their shopping accounts blocked
Return too many items in your online shop? You could have your account blocked, say experts.
This follows news that popular online retailers ASOS has begun deleting customers' accounts due to high levels of return activity. This is an update with their 'Fair Use Policy', which offers free returns to the vast majority of customers.
"For the small group of customers who consistently take actions that make providing them with free returns unsustainable, we deduct and retain £3.95 per returned parcel from their refund to help cover the cost of getting the goods back to us," says the policy.
"When deciding whether to make this deduction from your future refunds, we apply an objective formula based on your shopping behaviour, taking into account whether you have made particularly excessive returns well beyond the average ASOS customer's returns, as well as the number and value of orders made by you."
There's also a clause for 'suspicious activity', which can mean accounts are deleted altogether.
The policy explains that it includes: "ordering and returning large quantities - much, much more than even the most loyal ASOS customer would order - as well as the number and value of orders made by you; unusual patterns of returns activity; if we suspect that someone is not just trying on their items, but wearing them for an extended period of time and then returning them."
Customers have taken to social media to share the news, with LinkedIn and TikTok Posts about the issue.
Mumsnet posters gave their view on the issue, with one saying: "I think it's mainly to stop influencers buying stuff to do try ons and returning it all."
Another added: "People ordering 6 things when they have either no intention of keeping anything (just to make tictocs unpacking or whatever) or only keeping one thing as they had no intention of keeping 6 dresses or whatever has meant they had to clamp down on it."
Many mentioned the phenomenon of serial refunding. This is where consumers buy 'hauls' of clothes to try on, or wear clothes once, keeping the tags in, only to return them.
Experts also suggest the reason more companies deciding to penalise consumers for excessive returns is due to the cost of returning orders. The process of returning items contributes to the environmental costs and impacts of delivering items, due to packaging and courier vans.
There has been an increase in online ordering, with 85% of Brits ordering online in the past year as consumers are more likely to order multiple sizes and buy items in bulk, and as a result of this, the majority of consumers are returning their orders. The most frequent item bought online is clothing, with over half of Brits buying clothes online in the last year.
The introduction of buy now, pay later functions like Klarna has also contributed to a rise in multiple orders, as consumers can order multiple products and send others back without any money leaving their bank account.
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Retail payment experts at Dojo say: 'High amounts of returns can prove very expensive for businesses, so it's no surprise that fashion retailer ASOS is trying to ban customers who frequently return.
"Buy now, pay later has contributed significantly to customers buying more than they usually would to try different sizes and colours without any money leaving their bank account.
"This causes mass returns, costing brands money for the returns process. Therefore, discouraging excessive orders can combat potential return abuse.
"This is likely a move to help decrease the number of unnecessary returns customers are making and help offset the business costs incurred during the returns process.'
ASOS were approached for comment.
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