Test Blog

Free returns feel very much like a free lunch. Not sure if you are a size M? Order an S and L as well and return the ones that don’t fit. Not sure if that shade of taupe works with that bag? Order the black as well and do an Instagram poll to see what your mates think and return the loser. We feel bad about the delivery trucks zooming to and fro, but justify it saying we’ve got to be able to try things on. Besides, if we are careful with them, the clothes we return will be back on the website in no time, right? The sad truth is that managing returns is a nightmare for retailers and 10% of returns ends of in landfill, with less than 50% being offered for resale.

“Free lunch” was coined back in the mid-1800’s in the US when taverns started giving away free lunches with the purchase of a drink. The deal made people visit the tavern at lunchtime. The food was usually high in salt which meant that people would end up buying more drinks. So, the lunch was not “free”. It was paid for by the money spent on drinks. But the idea gained popularity quickly and soon taverns found they were running at a loss and the lunches were reduced to cheaper options like bread and cheese, until the numbers added up. There ain’t so such thing as a free lunch.

Free returns were introduced by online sellers with deep pockets, such as Amazon, in much the same vein. Competing with bricks-and-mortar stores, free online returns levelled the playing field for purely online retailers in the fashion market. But most companies that followed suit did so, not because the numbers added up, but because not doing so would lose them their consumer base. Even though they felt the pain of free returns, it felt like there was no other option. It is hard to make the returns process financially viable. Today, the massive increase in online returns has created a logistical and financial nightmare for retailers.