This is sudden change in situation and restrained, has not gone unnoticed. ready-to-wear giant ZaraI decided issue invoices to your clients, return of orders placed on the Internet for 1.95 euros. The amount, of course, is small, but nevertheless it marks a decisive turning point in the fashion industry, since such a decision risks inducing competitors to do the same.
Does Zara charge a fee for returning items purchased online, how much does it cost?
You may not have noticed it yet, but the fashion giant has added a line to its website, mentioning that everyone ” refunds for orders placed from 04/28/2022 » now represents « the cost of 1.95 euros, deducted from the refund amount“. While other brands of the Inditex group (Massimo Dutti, Bershka, Pull and Bear, Stradivarius, Uterqüe, Oysho, etc.) are not yet affected by this new commercial strategy at the moment, the Zara brand has already changed course.
To put it mildly, an unexpected decision, since Zara turns label the most profitable of the group with over 2000 physical stores worldwide. As proof, the brand, founded in France since 1990, generated a turnover of more than 19.6 billion euros of the 27.7 billion euros received by Inditex in 2021. pay for the return of Zara goods buying online is therefore an amazing choice given the impressive profits generated by the brand fast fashion. And here they could be the main reasons.
Orders placed online, ecological disaster
To solve this seemingly incomprehensible equation, let’s assume that the rates can be either financial and economic. And it’s not for nothing that managing the returns of goods sold online is a real headache in terms of logistics, as well as the perpetrators of an environmental disaster.
Because if traditional shipments follow a simplified shipping path, they may ” be centralized to optimize distribution as noted MBM. And vice versa, web-based return management is often done on a case-by-case basisindicating ” pre-printed labels provided upon delivery “. The packages are then transported to the warehouse by trucks, resulting in additional kilometers and costs, as well as significant pollution. A system clearly aimed at the Iberian brand, which only charges for the return of their orders to the pick-up point, while the return of Zara goods to the store is always free. What’s more, ” Parcel volume exploded after the health crisis “In particular, due to the closure of physical points of sale.
Founders Amancio Ortega and his wife Rosalia Mera seem ready to take the risk that new billing systemin spite of a significant drop in purchasing power beforeinflationbut also despite the fact that the competition continues to offer the cost of returning goods purchased online.
Zara, the competition favors free returns
A new experiment that could cost Zara dearly if customers abandon online shopping and turn to competitors who continue to free returns for orders placed online, for most brands. This is especially the case for fast fashion giants Asos, Boohoo and Shein, who abide by the rule of having no physical stores. For its part, Zalando created a service that allows you to order and receive goods, and then try them on before making a bank transfer, in order to “ pay only for those you keep as evidenced by the ready-to-wear website. Will we see a generalization of return costs? Case to follow.