Is PrettyLittleThing at the point of no return?
The last time online fashion brand, PrettyLittleThing, opted to change its return policy, there was a backlash and a reversal, but the company has announced it has made changes yet again. The reaction from customers is a lesson to all businesses.
The fast-fashion brand had a 28-day return policy – in line with competitors including H&M and ASOS – but has now halved this. The decision to change policy is the retailer’s bid to fight a wider problem. Online retailers are facing mounting costs as customers often buy multiple items – including a range of sizes in clothes – as they do not have a physical store to visit. However, for this same reason, customers want free returns and time to consider what they have bought.
Returns a thorny issue for the brand
The change of policy at PrettyLittleThing isn’t a complete surprise. Returns have been in the company’s sights for nearly a year now.
In June, some PrettyLittleThing customers reported that their accounts had been deactivated due to “unusual high returns activity”. The company argued that it was not preventing these customers from returning items, but exercising its right to refuse service to customers who were “bracketing” – placing a large order, wearing clothes once then returning them – a huge financial burden as the clothes can’t be resold.
At the same time, the company also rolled back on free returns, introducing a £1.99 fee for all customers,although later scrapped this for members of its loyalty programme. It is not alone in introducing a fee. Zara started charging shoppers for online returns in May 2022 and has stuck to this policy.
Is the move legally sound?
PrettyLittleThing is actually playing by the book with its change of policy. On its website, the company stipulates that: “any product(s) returned must be sent to us within 14 days from the date you notify us of your intention to return the product(s).” Customers have 14 days from the date that they receive a product to let the retailer know that they intend to return it. This means that customers still, technically, have 28 days in total from the day of receipt to return an item.
This policy is in line with rules set by the Government. These state: “You must offer a refund to customers if they’ve told you within 14 days of receiving their goods that they want to cancel. They have another 14 days to return the goods once they’ve told you”. These are the rules that all businesses must abide by.
Standard returns policies
The decision to change from a 28-day to 14-day returns policy shows how challenging this area of business is for all ecommerce ventures. According to CBRE, one in three items are currently returned and this costs the retailer, on average, £20 per parcel. This equates to an approximate cost of £7 billion a year for British retailers. For SMEs with smaller margins, this is a huge issue.
However the backlash that PrettyLittleThing has experienced shows ease of return is incredibly important to customers and can make or break a business. Creating a clear policy which gets the balance right can feel like a minefield, but is possible and can help build customer relationships.
Time of turbulence
As an online only retailer, PrettyLittleThing will continue to face the issue that customers cannot try on products and so want to know they can return items easily. For other businesses, it is a stark warning to create a sound returns policy that fits both the customers’ and business’ needs; and stick to it.
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The last time online fashion brand, PrettyLittleThing, opted to change its return policy, there was a backlash and a reversal, but the company has announced it has made changes yet again. The reaction from customers is a lesson to all businesses. The fast-fashion brand had a 28-day return policy – in line with competitors including…