With brick-and-mortar stores closed and communities dealing with shelter-in-place guidelines, brands are opting to extend return windows. Adore Me temporarily changed its policy from 30 days to 90. Direct-to-consumer bridesmaids dress company Birdy Grey updated its two-week exchange and return policy for all orders placed after March 20; shoppers can sent items back through May 31. Cuts, a premium men’s T-shirt brand, expanded its return and exchange window from 20 days to 60.
Returns are already a big challenge for e-commerce companies, known to have higher return rates than brick-and-mortar. Statista predicted returns would cost brands $550 billion by 2020. And, 41 per cent of shoppers buy things online with the intention of returning certain items, according to Shopify.
Christi Campbell, Head of the fashion, retail and consumer branded products team at national law firm Duane Morris, says companies that will win the most respect from customers are ones that aren’t setting hard deadlines for customers to return products. While building customer loyalty is key over the next few months, there are clear challenges for companies that decide to extend their return window — mainly the financial strain that could be put on the company.
Companies that do make the choice to opt for a return window on the longer side, 90 days or more — will have to deal with unsold inventory that will likely be out of season. Fast fashion companies will likely struggle the most here, as they operate under a quick turnaround to keep up with the latest trends, week-to-wee, Campbell said.