The luxury of free returns could soon be a thing of the past. Even though many online shoppers are familiar with free shipping and free returns as a standard practice, some retailers are reviewing their policies.

At Miik our goal is to offer low cost returns — we ask customers to pay for their own return labels because as a small business this is not a cost we’re currently able to carry. But we do not charge any additional restocking fees (with the exception of the rare case when an item is returned in poor condition). We also offer in-store returns at our Etobicoke studio! We hope this article will illuminate why it’s not possible for our returns to be entirely free. You can learn more about Miik’s return policy here.

According to a study by Pitney Bowes, returns cost retailers up to 21% of the item’s original value. Initially planned as a marketing tool to make online shopping more attractive to people who prefer shopping in-store, free returns have cost millions to the fashion industry as well as to the environment. So now companies are looking for new solutions and creative options to recoup some of the costs and their impacts.

 

Why are retailers ending free returns?

Did you know that during the 2022 holiday season in the US, the return rate was around 17%? This means a loss of $816 billion in retail sales. In the first week of January, US consumers returned roughly $30 billion worth of products. By January 5th, this adds up to roughly 5.8 million returned packages.

Companies are looking for more feasible and realistic alternatives around free returns to not only protect their business, but also the environment. While shipping prices continue to rise, the extra carbon emissions from transportation, packaging waste and the labour cost to resell those clothes make a huge impact on the environment.

Many Canadian retailers are adding a fee to their online returns as an attempt to compensate for their costs. Big names like Aritizia, UNIQLO, and Abercrombie & Fitch are some examples that started charging a return service fee or a return postage fee to all online purchases.

What is bracketing and its impacts on the retail industry

Bracketing is the act of buying products with the intention of sending them back. Imagine you want to buy a blouse. You're sure about your size, but you order a larger one too, just to be safe. Then, another colour tempts you, so you get that too. In the end, you've ordered 4 blouses in two sizes and colours, planning to return at least 2. Think about the financial hit that especially small businesses are absorbing due to these returns, not to mention the environmental consequences!

The “buy now, think later” mindset can be a dangerous shopping behaviour. These types of buying habits were encouraged during the pandemic, which increased the number of shoppers who practiced bracketing by 5% in just 2022 alone. Retailers are now rethinking these movements and re-visiting the drawing board in order to make the process greener, from both a business and sustainability perspective.

Unfortunately, not all returned items will have a second life. It is estimated that only 50% of returns go back into inventory. The other thousands of pounds of returned goods end up in landfills. Not only because of the condition of the garment when it is returned, but also because it is more cost-effective for some retailers. For many fast fashion brands, it is cheaper to throw it away instead of deal with the process of cleaning the garment, washing, repairing, relabeling, repackaging and putting it back on the shelf. These are just some examples that show how free returns are not a sustainable practice for the environment or the fashion industry.

At Miik, we are dedicated to keeping our clothes out of landfills. We recover and resell our products as much as possible. We ask that any items be returned to be in their original or similar condition. We take care to launder or repair damaged items that can still be worn and loved. However, when items aren’t returned to us in their original condition and need to be laundered, we charge a $10 restocking fee as a way to balance our costs. Online retailers have an opportunity to educate their customers that there is no such thing as a free return and that all of our choices have impacts.

Environmental impacts of free returns

It is not only businesses paying the high prices of free returns — the climate is also getting impacted! Free returns impact the environment in 3 stages:

Logistics (transportation)

Couriers are responsible for a significant part of greenhouse gas emissions, especially carbon dioxide (CO2). The daily back-and-forth of trucks filled with packages to be returned to businesses due to impulsive purchases has big impacts on the environment. Did you know a single item using a courier emits 181g of CO2 when being returned?

Intentional returns

The consequences of bracketing have also been impacting the environment. Making a purchase knowing that it will be returned means that the CO2 emissions will double from transportation. This shopping practice creates an inflated production model where manufacturers produce more clothes than what is actually needed, generating more greenhouse gas emissions that contribute to global warming and climate change.

Post-production

Not every returned item gets a second chance to be re-sold. When it comes to fast fashion brands, the staffing and time it would take to restock an item costs more money than they originally paid to make the garment! When clothing is cheaply made, it can be more cost-effective for brands to throw them away. In other instances, items are returned in bad conditions and cannot be laundered or repaired.

How to reduce costs to you and the environment

To help you make more environmentally conscious decisions, here are some tips that can help you save time, money and carbon emissions when shopping online.

Consider your purchases more carefully: Reading the product description and any additional information on a product page can really help you make a decision on what you want to buy, and what colour and size will work best. You can find information such as fabric details, fit measurements of community models, care instructions, and other information that may be important to you. These details can give you a better idea of what to expect from your online purchases.

Store’s policies: Be sure to check the return policy before hitting the “buy” button. It’s easy to make the mistake of buying things online without understanding the company’s return policies. Returns/exchanges can have a different range of dates and rules. Some companies only offer store credit for specific styles, while others may not even accept returns. Make sure that your expectations match the company’s return policy — and if you don’t see one on their website, be sure to reach out and ask for one before making a purchase!

Double-check your cart: Especially when you’re in a frenzy to grab that new style you LOVE, it can be easy to accidentally order incorrect sizes, colours or even duplicates…it's more common than you might think! To avoid future headaches and inconveniences, always make sure to double-check the items in your cart.

Rethink your shopping behaviour: Shopping for clothes online can be challenging at times. However, buying multiple sizes or similar products just for the curiosity of fit with no real intentions of keeping them is not considered a sustainable practice for you, the business or planet earth!

Nowadays there are many tools available to customers to make online shopping easier. Measurement charts, virtual fitting rooms, and sizing calculators like the Size & Fit Calculator at Miik can be helpful in making a decision. You can also find the garment’s measurements and use the info to your advantage. Things like garment or sleeve length, inseam and side slit measurements may be important to you. Be sure to check out our fit and size tab as well, where we share all our community model measurements including height, bust, waist, hip and what size they wear in that particular piece!

Reach out to customer service: Have concerns, comments or questions about any product? Don’t be afraid to contact the company by calling or sending an email. They are the best people to give you insight and advice on the perfect fit. At Miik, our priority is to make sure our customers are satisfied with every purchase.

 

Real-life models: Hoping to see someone a little bit more like you, with a similar body shape or size to visualize how the clothes will fit? Buying clothes online can be challenging and even disappointing when we can’t try them on first. That’s why it’s important to look for brands that are diverse and show “real-life” models to display their garments. At Miik, we host virtual fashion shows regularly so you can see styles modelled on different body types and ask any questions. This is one of the ways we do our part to help reduce our returns and their impact on the environment. All body shapes are beautiful! Support brands that want you to feel confident about the skin you’re in.

Read reviews: What can be more honest than a customer opinion? Reading what people have to say about something you are interested in can be very helpful. Should you size up? Does the fit really match the description? Do they regret or recommend the purchase? Is there something that they would change? People's experience can give you tips, insights and help you make a more assertive decision.

Following these steps not only help the businesses you love to support, but can also make a change in your shopping practices and their impact on the planet.

Not offering free returns is a starting place for retailers to reduce their footprint and help protect the environment. While the shift could be a difficult change for many online shoppers, it’s necessary if we want to create a more sustainable future for all. Retailers are choosing earth over ease. Are you in?

With much love,
Your Miik team ❤️️