Customers returning items bought online might face new charges. Retailer ASOS will now charge UK shoppers £3.95 for returns unless they keep at least £40 worth of their order. In New Zealand, the return fee is $8.99.
Carolyn Young, the chief executive of Retail New Zealand, explained that many people now order lots of items online and return most of them. This trend puts pressure on retailers, impacting their profits due to shipping costs and handling returns.
Young noted that this issue isn’t a big problem for New Zealand retailers yet, but shopping habits are changing. Retailers are adjusting their services to remain attractive to customers while being sustainable.
Chris Wilkinson, a consultant at First Retail Group, mentioned that ASOS is not the only retailer making changes. Other companies have also introduced new fees or stopped shipping to New Zealand, like Boohoo and Nike, while some brands have left the market due to shipping costs.
Wilkinson stated that over the past decade, many online retailers became very popular, but now they struggle to show good results for investors, partly because shipping costs have increased significantly worldwide.
He added that New Zealand shoppers have faced extra charges, like import taxes when buying from sites such as ASOS, which can make local shopping more appealing. Young agreed, saying that the appeal of local goods depends on prices and shipping costs, and that returning goods internationally can be complicated and expensive for larger purchases.
