Asos’s New Returns Policy Targets Frequent Returners with Fees and Transparency

Asos, the online fashion retail giant, has significantly updated its UK returns policy, a move widely applauded as a serious effort to address the growing issue of excessive returns. The company anticipates handling over 700,000 returns following the seasonal shopping period, making this policy change particularly timely.

Launching on January 6th, Asos is introducing a new transparency tool for shoppers. This tool allows customers to view their individual return rate within the Asos app. Those with a return rate below 70% will continue to enjoy free returns as before. However, the new policy introduces tiered charges for frequent returners.

Customers whose historical return rate exceeds 70% of their total order value will still be exempt from the £3.95 returns charge if the value of the returned items from a single order is less than £40. However, shoppers with a return rate of 80% or higher will now face both a £3.95 returns charge *and* a £3.95 restocking fee, effectively doubling the cost of returning items.

Industry experts have praised the update. Fulfilmentcrowd, a global fulfilment provider, described the move as a “strong signal that retailers are getting serious about tackling the growing strain of excessive returns.” The policy aims to offer greater flexibility to customers who generally keep the majority of their purchases, while discouraging consistently high return rates.

This latest development builds upon a previous change implemented in October 2024, where Asos initially introduced a £3.95 return fee for customers with high return rates, unless they retained at least £40 worth of merchandise. The new transparency tool and tiered fee structure represent a further refinement of this approach.

Alongside the return rate visibility, Asos is providing resources to help customers make more informed purchasing decisions. These include enhanced product visuals like videos and 360-degree imagery of models, more detailed size information, and personalized recommendations through its ‘fit assistant’ feature.

Ben Blake, Asos’s Executive Vice-President of Customer and Commercial, emphasized the company’s commitment to maintaining free returns for all customers in core markets, while ensuring sustainability. He stated that providing customers with their return rate is a key step in helping them make more considered choices, and that initial results show the approach is already influencing purchasing behavior.

The move by Asos reflects a broader trend within the retail and e-commerce sectors. Many retailers are actively addressing the rising costs associated with processing and managing returns, which they attribute to the abuse of lenient returns policies. Lee Thompson, CEO of fulfilmentcrowd, noted the sharp increase in return processing costs and sees Asos’s decision as a proactive measure to protect profitability and operational efficiency.

Katie Shepherd, Head of Marketing at fulfilmentcrowd, highlighted the shift towards proactive transparency. Asos is moving away from simply penalizing high returners and instead offering them the opportunity to modify their behavior before incurring charges. This represents a move towards data-led, tiered policies rather than outright account bans.