What: Three-quarters of major UK fashion retailers now charge for returns, reflecting a fundamental shift in industry policy.

Why it is important: The move to charge for returns highlights the industry’s search for sustainable solutions to the financial and environmental impact of high return rates.

Fashion retailers are fundamentally rethinking their approach to returns, with three-quarters of the UK’s largest brands now charging for this service. This shift is driven by the escalating costs associated with returns, which reached $890 billion in the US by the end of 2024, as reported by the Financial Times. The surge in returns is closely linked to changing consumer behavior, particularly among Gen Z, whose “haul culture” and social media-driven shopping habits have normalised over-ordering and frequent returns. As a result, retailers are introducing return fees not only to recoup operational expenses but also to encourage more deliberate purchasing decisions. The industry’s response extends beyond simple policy changes; many brands are investing in AI-driven solutions to personalise return experiences, reduce fraud, and maintain customer loyalty. Innovative approaches such as “returnless returns” are also gaining traction, transforming returns from a cost center into a tool for building trust and long-term relationships. These developments underscore a broader industry trend toward balancing profitability, customer satisfaction, and sustainability, as retailers adapt to the realities of modern e-commerce and shifting consumer expectations.

IADS Notes: In December 2024, the Financial Times highlighted the $890 billion returns problem, with two-thirds of US retailers implementing return fees. Vogue Business in November 2024 detailed how Gen Z’s haul culture is fueling high return rates, while Inside Retail’s December 2024 report confirmed the widespread adoption of return charges. By February 2025, Journal du Net noted the rise of AI-driven return management, and Forbes in July 2025 documented the growing use of “returnless returns” as a loyalty strategy.

Majority of UK fashion retailers now charging for returns