ASOS shoppers have been left with a bad taste after a recent crackdown on excessive returns.
Last year, the retailer updated its Fair Use policy to discourage customers from over-ordering. Now, a “small group” of customers have had their accounts banned for breaching the new guidelines. And they aren’t happy.
A ban might sound harsh, but it’s becoming a go-to move for online retailers trying to cut down on rising logistics costs and return fraud.
So, how do online sellers create a fair returns policy that protects their margins, without alienating customers?
Why is ASOS banning customers for returns?
In October 2024, ASOS reviewed its Fair Use policy to clamp down on high return rates and suspicious return behaviour, also known as refund abuse.
The fashion ecommerce giant swapped free returns for paid returns and introduced a fee for customers who return a high volume of items, unless items are faulty or incorrect. For ‘regular’ returners, a fee is now deducted if the value of kept items is below a certain threshold: £40 for regular customers and £15 for premium subscribers.
Following the changes, ASOS sent emails out to “a small group of customers whose shopping behaviour continues to breach our Fair Use policy,” stating that their accounts would be closed within 30 days.
The introduction of paid returns reflects wider industry trends, as retail companies struggle to keep up in the face of rising production and logistics costs.
Lee Thompson, CEO at fulfilmentcrowd, commented, “ASOS’ move to close accounts in relation to its Fair Use Policy is a strong signal that retailers are getting serious about tackling the growing strain of excessive returns.
The cost of processing and managing returns has risen sharply in recent years, and this decision is a clear attempt to protect both profitability and operational efficiency. It also reflects a wider [shift] towards creating a more sustainable and manageable returns culture.”
That said, loyal ASOS customers have been left feeling alienated by the move, taking to social media to vent their frustrations.
One customer wrote on X, “Account closed for consistent breaches of their [ASOS] Fair Use policy when I haven’t returned anything since October.”
Another baffled shopper said, “I haven’t shopped with ASOS in over a year and I still get an email telling me my account is being closed.”
Others were left upset by the ban, with one customer writing, “ASOS have really hurt me today closing my account what did I do?”
H2: Why are ecommerce returns a concern for sellers?
Recent research from fulfilmentcrowd suggests that high volumes of returns aren’t just an ASOS issue, but an industry-wide trend. On average, UK shoppers buy 22 fashion items online per year, nearly one every two weeks. Of these, six are returned, meaning around 30% of online fashion orders go back to retailers.
Thompson also shared that, “According to Retail Economics, serial returners send back £6.6bn of online purchases per year.”
One key factor behind this surge in returns is the rise of BNPL (Buy Now, Pay Later) and ‘haul’ culture. These trends encourage customers to order large quantities of clothing to try on, often just for a video, with no intention of keeping them. Some retailers have even dubbed this the ‘Try Now, Pay Never’ phenomenon, according to Thompson.
In response, ecommerce giants like Pretty Little Thing have taken steps similar to ASOS to address the problem. Clearly, brands are keen to crack down on excessive returns due to the operational pressure they create.
Austin Waddecar, CPO at fulfilmentcrowd, explains, “Many retailers are cracking down on mass customer returns due to operational costs, inventory management, environmental impact, and fraud prevention.”
Retailers can deny a customer’s return for many reasons. One may be non-compliance with return policies (such as being unused with tags and in original packaging) and being past the return window. However, retailers might also deny returns for stickier reasons, such as high return frequency, mismatch with original condition, or suspicious return patterns.
One such suspicious return pattern is “bracketing”, when customers order multiple sizes, colours, or styles with the intention of keeping only one. Fulfilmentcrowd’s data reveals that 62% of online shoppers bracket to some extent due to uncertainty around sizing or fit.
How to protect your brand from return abuse
Cracking down on refund abuse is necessary for online stores to thrive. But as the reaction to ASOS’ latest action shows, it can cause backlash. And while the marketplace might be big enough to absorb the impact, small firms need a more delicate approach.
To reduce the frequency of bracketing, for example, retailers can check their stock to ensure product sizing is accurate, perhaps using detailed customer reviews with photos, suggests Thompson. This should be the first step before considering more extreme action like banning certain accounts.
By encouraging responsible shopping habits and making resources like detailed sizing guides and genuine customer reviews more readily available, retailers can help customers make better selections first time around.
At the same time, returns shouldn’t be treated purely as a cost centre. As Taylor also points out, they’re a window into customer behaviour that can alert brands to genuine issues that can increase your return rate.
When done correctly, thoughtful return policies can support stronger customer relationships, smart inventory management, and more sustainable shopping.
