Chris Wilkinson: First Retail Group managing director on the rise in online shopping outlets charging for returns

Experts believe a changing retail market and the evolution of influencers have forced online companies to make some changes. 

British e-retailer ASOS has confirmed it plans to charge shoppers to return items unless they keep £40 of their order.

Meanwhile, Boohoo recently introduced a freight charge into New Zealand, Nike has stopped shipping here altogether and other brands have reduced their availability for Kiwi customers. 

Chris Wilkinson from First Retail Group says consumers need to accept that this is the way of the future.

"Abuse is certainly causing most of these retailers in the UK big challenges."

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Episode Transcript

Speaker 1 (00:00):
Now it looks like online shopping is and for a
bit of a shake up, a UK retailer Asos is
going to start charging UK shops about four pounds to
return items unless they keep forty pounds worth of their order,
and in New Zealand returns will cost us about nine
bucks New Zealand dollars. It's one of a number of
changes being brought in by a big online retailers. Boohoo

(00:20):
recently introduced a freight charge into New Zealand, and Nike
has pulled out of shipping here altogether. First Retail Group
Managing director Chris Wilkinson.

Speaker 2 (00:27):
Is with us.

Speaker 1 (00:27):
Now, Hey Chris, hey, how are you heav I'm very
well thank you know? Is this because people are taking
the mickey with what they're ordering and how much they're ordering.

Speaker 2 (00:35):
There's been there, it has been that situation in the UK.
Around six percent of asos as customers make up a
very large portion of those returns.

Speaker 1 (00:46):
What are people doing? Are they? I mean, is it
true that you've got some people who are buying clothing,
trying it on, wearing it out and then sending it back.

Speaker 2 (00:56):
Absolutely, it is a bit of that. You'll if anyone
follows vloggers. You'll often set people promoting the halls that
they've done trying the stuff on, showing it online and
then sending it back.

Speaker 1 (01:08):
How prevalent do you think that is?

Speaker 2 (01:11):
Well, it is growing in prevalence, and the ab abuses
are certainly causing most of those retailers in the UK
big challenges.

Speaker 1 (01:21):
I imagine this is quite a pricey part of their business,
right because it'll be quite labor intens of having to
unpack all the staff, make sure it's all there, presumably
refresh it or whatever, and then put it back out.

Speaker 2 (01:31):
We've just come back from working in the UK. It's
an industry in itself, these returns. There are factories dedicated
to taking the product back, checking it, refreshing it and
then either putting it back into stock or in some
cases it has to go to land on.

Speaker 1 (01:47):
Chris, is it going to impact how we buy from
these places? Because I'll be honest with you, I really
struggle buying stuff online because of the uncertainty of sizing
and the quality of the stuff, and so knowing that
you can send it back without any added cost is
kind of reassuring.

Speaker 2 (02:02):
It's true. It's interesting because these retailers are encouraging Obviously
Asos doesn't have stores, but for the other big retailers,
they are encouraging people to bring those returns back into
store and we're seeing store traffic is starting to rise
back in the UK.

Speaker 1 (02:18):
Interesting, that's a very smart move. Okay, So is this
just something we need to get used to? This is
just the way it's going to be from here on in.

Speaker 2 (02:24):
I think so people will just have to realize this
is going to be the way of the future. All
the big retailers are doing it.

Speaker 1 (02:30):
Yeah, Chris, thank you. Always got to talk to you. Appreciated.
Chris Wilkinson, First Retail Group Managing Director.

Speaker 2 (02:35):
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