End of free returns? What to know as some Canadian retailers offer eco-friendly options

Online shopping and ensuing returns produce a lot of waste as some returned items end up in the landfill because of the costs involved with inspecting and re-stocking items.

Looking to return a dress that you bought online, or a home décor item that doesn’t quite match with the rest of your room? Returning them may not come free as retailers struggle with financial and logistical squeeze. While some are introducing charges, others are on the hunt for alternatives.

Some companies like Abercombie & Finch, Uniqlo and H&M have already started charging for online returns. Uniqlo, for instance is currently charging $9.9 plus taxes while H&M that accepts return-in-store, has a rate of $4.99 for non-members returning items via mail. Abercrombie and Finch accepts in-store returns too, but will deduct $7 from your refund for online returns.

A recent U.S. survey of online retailers show that more that 40 per cent of online merchants found shipping prices to be their biggest challenge in 2022. More than a third expect that this year as well.

According to Sylvia Ng, CEO of online returns service provider ReturnBear, a lot of retailers get more that 20 to 30 per cent of their inventory and sales returned. “And, so that’s really what the crux of the problem,” Ng told Global News.

Coming out of the pandemic lockdown, consumers have gravitated towards bracket buying, said Ng. They buy multiple sizes or variations of the same item just to see what fits. Once they find the right fit, they return the rest.

“Everyone’s been used to buying online and we all have these expectations of how easy it should be to return something,” said Ng.

This practice not only makes it hard for retailers to manage online returns, but the burden of shipping costs also falls onto their shoulders, she added.

“We as Canadians are very geographically dispersed, so it does mean that our shipping cost generally is high,” said Ng. “For an average item to be going across the country, (the) cost (is) somewhere between 9 to $14.”