Should Your Clothing Store Charge for Returns?

By Raheel Gul5 min read
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Quick answer

Return fees are now common in fashion, and several large retailers charge for mailed returns. The evidence that fees cost you customers is mixed and comes mostly from returns software vendors, not independent studies. A small clothing store should treat a fee as a last step: fix the size problems behind the returns first, then test a narrow fee on one group of returns.

A return costs you the shipping both ways, the handling, and often the resale value of a garment that comes back creased. So the idea of charging for it is not crazy. It is also how you find out which of your customers read the returns page.

How common are return fees in fashion?

More common each year. H&M and Zara both charge for some mailed returns, and Zara keeps in-store returns free. A UK benchmark from the returns vendor Ingrid says 35 percent of brands now charge, up from 23 percent in 2023. Published UK fees run from under two pounds to over twenty, with most at the low end.

Treat those figures as a direction of travel. They come from a vendor, and a large chain can absorb a customer backlash that a small store cannot.

Do return fees cost you customers?

Nobody has an independent answer. Two vendors read the same market differently, and both sell returns software.

  • Narvar reports that among retailers that started charging, 37 percent lost customers and 24 percent saw sales fall. It calls fees a last resort.
  • Ingrid's research says no brand it tracked has removed a fee after introducing one.
  • ASOS is reported to apply fees only to customers who return a very high share of what they buy, rather than everyone.

The reasonable reading is that a blanket fee is a gamble and a targeted one is safer. The data also suggests fees do not change why people return things. They change who pays for it.

Editorial illustration for Should Your Clothing Store Charge for Returns?
An editorial illustration for this article

What kinds of return fee can a small store use?

You have more choices than free or paid. Pick the mildest one that covers your real cost.

  1. Fee on mailed returns only: keep returns free for exchanges and in-person drop-offs, as Zara does for in-store returns.
  2. Fee deducted from the refund: a flat amount that roughly covers return postage, stated at checkout.
  3. Free exchange, paid refund: the swap costs nothing, the refund carries a small fee. This pairs well with an exchange-first returns flow.
  4. Fee for repeat returners only: the narrowest option, and the hardest to run without software.

Whatever you pick, put it on the product page and at checkout. A fee the customer finds out about during the return is not a policy, it is a complaint waiting to be written.

Fees apply to change of mind returns, not to faulty or misdescribed items, which you must cover. In the UK, consumers also have statutory cancellation rights for most online purchases, and rules on who pays return postage depend on what you told them up front. Our guide to UK returns law for online clothing stores sets out the details. US rules vary by state and by the policy you publish, so check each market you ship to.

What should you fix before you charge?

A fee moves the cost of a return from you to the customer. It does nothing about the reason the garment came back, which in clothing is usually fit. Cutting that reason shrinks the bill for both sides.

  • Give each product its own measurements, not one size chart for the whole shop.
  • Show the model's height and the size worn on every product page.
  • Add a fit preview: Corlen lets a shopper see the garment on their own photo before they pay, and the Shopify app has a free plan with 25 try-ons a month to test it.

Work out what returns cost you today with the return cost calculator, and read how to reduce size returns on a Shopify clothing store. Then decide on a fee with numbers in hand. To see what your shoppers would see, try Corlen on your own photo.

Frequently asked questions

Do return fees hurt sales for clothing stores?

The evidence is mixed and mostly comes from vendors. Narvar reports that some retailers that introduced fees lost customers, while Ingrid's research says no brand it tracked later removed a fee. Neither is an independent study, so test a narrow fee on your own store before rolling it out.

How much should a return fee be?

Published UK fee ranges are wide, from under two pounds to over twenty. Most fall at the low end. A fee should roughly cover your return shipping and handling, not punish the customer, and it should be stated clearly before checkout.

Can I charge for returns of faulty items?

No. Consumer law in the UK and most US states expects you to cover returns of faulty or misdescribed goods. Fees apply to change of mind returns only. Check the rules for each market you ship to, and see our guide to UK returns law.

What can I do instead of charging a return fee?

Cut the returns that cause the cost. Offer exchanges first, give item specific size guidance, and show shoppers the garment on their own photo before they buy. Fewer wrong-size orders means less to charge for.

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