Customers who want to return items bought online may face more charges, as some retailers have been adding up the costs Photo: NZ Post
The decision by retailer ASOS to start charging shoppers for returns when they frequently want large refunds makes sense in a changing retail environment, commentators say.
The large international clothing retailer announced it will charge UK shoppers £3.95 for returns unless they keep £40 of their order.
In New Zealand, returns cost $8.99.
Retail New Zealand chief executive Carolyn Young said the evolution of influencers had changed how people shopped, and many people now ordered large numbers of items online, only to return the majority.
"If the retailer is paying for the freight it will impact on margins and profitability, together with double handling of goods when they arrive back."
She said it was not a significant problem for New Zealand retailers at the moment but the way people shopped continued to evolve.
"Online retailers, like bricks and mortar stores, continue to review their offerings to ensure that they are attractive and relevant to customers as well as sustainable for their businesses," Young said.
Changing landscape for online shoppers in New Zealand
First Retail Group retail consultant Chris Wilkinson said ASOS's move was just one of a number of changes being brought in by big online retail players.
Many changes had affected New Zealand customers, he said.
Boohoo recently introduced a freight charge into New Zealand, Nike had stopped shipping here, and brands such as Photobox had exited due to the freight costs and complexities involved with serving smaller markets, he said.
"There's been a lot of things going on at the moment, it's a response to the fact that really over the last decade, these pure-play ecommerce retailers have been the darlings of the stockmarket and captured everyone's attention.
"They've been putting a lot of infrastructure in, a lot of investment in and now the cows are coming home, they aren't delivering the performance for their shareholders. The costs of freight have been going up immeasurably around the world."
He said a number of New Zealand shoppers had been stung by import taxes from buying through sites such as ASOS more recently: "It doesn't take long for that story to get around. People start to reprioritise back to local sources."
Young agreed there could be an impact.
"It depends on the price point of the goods, the broader offerings and cost of freight, in comparison to locally bought goods as to whether or not New Zealand consumers would prefer to buy local," she said.
"Certainly the hassle of sending goods internationally alongside the costs could be prohibitive for larger purchases."
