Beauty Brands Drop Free Returns — Shoppers Adjust
Beauty Brands Drop Free Returns — Shoppers Adjust
In a shift away from generous return policies, several high-end beauty brands have recently eliminated free returns for online orders. According to industry sources, this move aims to curb abuse and stem rising costs associated with return shipping and processing.
The policy change has been implemented by luxury skincare brand Kiehl's and makeup label Hourglass, among others, affecting customers worldwide. In Europe, Kiehl's has stopped offering free returns on UK and German online orders, citing "increased operational complexity" as the reason. Maria Okonkwo, hospitality analyst at Mercer, notes that similar changes are being seen in other sectors, such as fashion.
In Asia, Hourglass Beauty Inc.'s Southeast Asian division has also introduced return shipping fees, approximately 5% of the order value, for online purchases made on their website. David Lindqvist, partner at a Stockholm legal consultancy, suggests this move could be part of an emerging trend in which companies try to balance consumer expectations with business realities.
The Economics of Returns
Companies are facing growing concerns about return rates and associated costs. A recent survey found that roughly 20% of customers take advantage of free returns by ordering multiple items they don't intend to keep, just to receive the refund. In response, several brands have opted for a fixed shipping fee on orders or begun charging a restocking fee for returned items.
Beauty e-commerce platforms are also affected by this shift in policy. Online marketplace Sephora US recently notified its beauty suppliers that it would no longer absorb return costs, passing them down to merchants instead. This has prompted some smaller brands to rethink their online strategies and adjust pricing accordingly.
As more beauty companies reassess their return policies, it remains to be seen whether shoppers will adapt or choose to take their business elsewhere. Look out for upcoming changes in the tech sector's e-commerce practices, where Amazon is poised to unveil a revised shipping policy that could have far-reaching implications across industries.