Customers of popular online fashion brand ASOS have been left confused after the retail giant recently began deleting customers’ accounts due to high levels of return activity.
This is an update with the company’s ‘Fair Use Policy’ but has nonetheless angered a portion of its customer base.
Rhea Sangha, a marketing manager at John Lewis, took to LinkedIn to comment on the matter.
She wrote: “I was pretty gobsmacked as I am die hard, loyal ASOS fan and have been a regular customer for years. It’s my go to for holidays, weddings, parties and I bloody love Topshop!!…
“I spend hundreds of pounds [a] year with ASOS, in the last month alone I’ve purchased 12 items and spent £350+… Is this really how retailers should be treating their best customers? Is this what loyalty should feel like?
“Very disappointing… Working in fashion retail myself I know how important it is to protect and reward your most frequent, loyal shoppers so I’m pretty disappointed (hence the post!)”
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According to retail payment experts at London-based FinTech Dojo, this move could be an attempt by the brand to mitigate the phenomenon of serial refunding.
This is where consumers buy ‘hauls’ of clothes to try on, or wear clothes once, keeping the tags in, only to return them.
The reason more companies are deciding to penalise consumers for returns is due to the cost of returning orders. The process of returning items contributes to the environmental costs and impacts of delivering items, due to packaging and courier vans.
The experts explained: “High amounts of returns can prove very expensive for businesses, so it’s no surprise that fashion retailer ASOS is trying to ban customers who frequently return.
“Buy now, pay later has contributed significantly to customers buying more than they usually would to try different sizes and colours without any money leaving their bank account.
“This causes mass returns, costing brands money for the returns process. Therefore, discouraging excessive orders can combat potential return abuse.
“This is likely a move to help decrease the number of unnecessary returns customers are making and help offset the business costs incurred during the returns process.”
BusinessCloud has contacted ASOS for comment.