H&M becomes latest retailer to charge customers for online returns

H&M joins the likes of Zara, Boohoo and New Look in implementing a fee of £1.99 to return parcels either in-store or online and the cost will be deducted from the refund total.

Returns for H&M members will remain free and members will also continue to benefit from other perks including free delivery when they spend £30 or more, 25% off one item on their birthday and the option to pay in 30 days via Klarna.

An H&M spokesperson the BBC the shift to charging a returns fee was introduced in the summer.

Customers are not expected to be charged the £1.99 return fee if items are faulty or damaged, according to the retailer’s website.

Retail expert Jonathan De Mello told the BBC other retailers are likely to follow H&M in introducing a charge for returns if they do not already.

De Mello said: “It’s interesting that companies seem to be doing it by stealth, but it’s a sensible thing to be doing.

“It makes economic sense, as it discourages shoppers from bulk buying online products and then returning the majority of them. That’s been a real problem for companies.”

De Mello also said the move from H&M emphasised a wider trend of retailers attempting to build on customer loyalty via loyalty schemes.

He added: “Particularly in the cost-of-living crisis, retailers need to work harder to retain customers, as people are keen to shop around for the best deals.

“Loyalty is fickle, but if you can provide clear incentives, such as free returns, then you’re more likely to retain your customers.”

H&M posted a 6% increase in sales year on year to reach SEK60.9bn (£4.38bn) for the three months to August 31 and said it had prioritised profiability and inventory levels during its third quarter.