Dive Brief:
- Apparel retailer South Moon Under changed its return policy through the launch of its KeepIt program, according to a company email.
- Online shoppers receive 15% off full-priced items when they use the code “KEEPIT.” Using the code makes the entire purchase final and ineligible for returns both in store and online.
- The code can be used on most full-priced items, but can’t be combined with other promotions, offers or discount codes, according to the company.
Dive Insight:
Like many other retailers, South Moon Under has been rethinking its returns policy.
“Returns are expensive and time consuming for both you and us,” the retailer wrote in an email to customers announcing the KeepIt program. “If you know you love it and are sure you want to keep it, we want to pass on the love!”
Consumers are expected to return over $816 billion in merchandise purchased in 2022, according to a report by the National Retail Federation released at the end of last year. Additionally, for every $1 billion in sales, the average retailer incurs $165 million in merchandise returns.
“While oftentimes returns represent a lost sale for a retail establishment, returns can also provide recourse through positive customer engagement and, potentially, another purchase,” Mark Mathews, NRF’s vice president of research development and industry analysis, said at the time.
Companies have responded to online returns in number of ways. Last year, Zara announced that U.K. customers would be charged 1.95 pounds, or about $2.45 at the time, for customers to return online purchases to third-party drop-off points. Customers are, however, still able to return online purchases at any Zara store in the U.K free of charge.
Additionally, Amazon recently started charging customers for some returns made to The UPS Store locations. Customers may be charged when selecting The UPS Store for a return if a free option — Amazon Fresh, Whole Foods or Kohl’s — is within the same distance or closer to the customer’s delivery address.
