Shopaholics, avert your eyes: the era of free and easy returns could be coming to a close.
Driving the news: Amazon is officially ending its Try Before You Buy program this week, a policy that had let Prime members try clothes for seven days and return unwanted items for free. It’s the latest company to tighten its return policies amid a surge in return fraud.
- Big apparel retailers like H&M, J. Crew, and Zara have all started charging customers return fees in recent years.
- Returns company Narvar reportedly saw a 25% increase in businesses charging for return shipping in 2024, with many other retailers cutting their return windows.
Why it’s happening: Almost 70% of shoppers admitted to intentionally buying, wearing, and returning items last year — a practice known as wardrobing. That’s up nearly 40% from 2023.
Why it matters: Last year, 17% of online apparel orders were returned, costing businesses US$890 billion. While some companies have targeted individual culprits, many have turned to broader measures that affect everyone, like hiking prices on products.
What’s next: Sylvia Ng, CEO of Canadian return logistics firm ReturnBear, told the Globe and Mail that more brands will likely start tacking on free returns as a perk of reward programs, a move that brands like Nike and Skims have already made.—LA
