H&M is now considering charging its customers for online returns, following in Zara’s footsteps.
The charge would help the retailer offset increased raw materials and freight prices it has incurred, leading to a disappointing quarterly report that sent its share prices to an 18-year low.
According to H&M’s Chief Executive Officer Helena Helmersson, the company plans to initially test out the new return policy in Norway and the U.K. in the coming days.
“We are testing it as a possible measure we could take, all depending on how the customers react,” said Helmersson.
Helmersson, however, hopes inflation on some raw materials, such as cotton and transport, has peaked.
“There’s still quite a lot of uncertainty, but it looks like it has peaked and is slowly but surely leveling out,” said Helmersson. “The biggest factor affecting us going forward is the U.S. dollar.”
H&M’s decision to start charging its customers for online returns comes nearly four months after Zara implemented a similar policy in the U.K.
Zara now deducts a £1.95 fee from the amount of the final return. However, the fee is waived if customers return the merchandise at one of the company’s physical stores. Any products returned at one of the company’s third-party drop-off points are also subject to the additional charge.
