The UK online fashion retailer Asos is done with customers who turn out to be serial returners. The company does not want customers who purchase clothing, wear it and then return them. Next to this, they are threatening to deactivate the accounts of customers who order and return many more items than ‘the most loyal Asos customer would’ as well.

Wearing and returning is a popular thing among fashion shoppers all across Europe. Asos is not the first company in the fashion industry that is changing its return policy. Zalando started a trial earlier this year where they attached very big labels to their products. They did this to make it hard for customers to wear the product and then return it. Zalando's new labels contain a text, informing the customer. It says: “Dear customer, feel free to fit this article and try it, but if this label is removed, it will not be accepted as a return by Zalando” on them.

Asos aims for a sustainable return solution

Asos wants to do something similar. The company explained in an email sent to its customers that they want to keep their return process more sustainable, both for them and the environment. They mentioned that when noting any unusual return patterns, they will investigate and/or take actions based on this. One of the actions might include deactivation of the account.

The company says: “If we notice an unusual pattern of returns activity that doesn’t sit right we might take action. E.g.: we suspect someone is actually wearing their purchases and then returning them or ordering and returning loads – way, way more than even the most loyal ASOS customer would order – then we might have to deactivate the account and any associated accounts.”

The post Asos is done with serial returners appeared first on Cross-Border Magazine.

ASOS said it had 16% more active customers and that 4% more orders were placed. However, the average selling prices and basket sizes both decreased by 1%. The basket value also decrease and the value dropped with 2%. The Premier Delivery subscription, which provides customers with free next-day delivery and returns after they have paid an annual fee of £9.95, may be the cause of this.

Growth in US market

Sales in the United States were higher than expected, with sales growth as a result. ASOS CEO Nick Beighton said the following about this: “Our US performance was behind our plans during the period. As our Atlanta warehouse went fully online, demand far exceeded our expectations. Whilst very encouraging for the longer term, this caused a significant short-term despatch backlog which we have now cleared."

Unlike the US market, sales in the French and German markets continued to be challenging for ASOS.

Rising sales in UK and EU

Group revenue came in at £658.5m during December-February. The revenue has increased by 13% in comparison to the same period last year. Retail sales were up by 13% at £641.3m.

ASOS reported a 14% rise in sales in the UK and 12% in the EU in the latest quarter of its financial year. Sales increased 4% in the US, although they were down by 3% in the US market when currency fluctuations were discounted. ASOS' sales grew even faster in the rest of the world (+20%).

The retailer said that it expected to see full-year sales grow by 15%, while earnings before profits would be unchanged at around 2%.

The post Rising sales for international e-tailer ASOS appeared first on Cross-Border Magazine.