Free Returns Aren’t So “Free” Anymore: Why that’s good for customers
For decades, “free returns” has been treated like a hygiene factor in online retail: a frictionless promise that keeps conversion rates healthy. But that model is now under increasing pressure from rising operational costs and could even become an historical anomaly.
Retailers are paying closer attention to returns behaviour, and customers who consistently push the system too far are beginning to feel the consequences. ASOS, H&M and Pretty Little Thing have all reviewed their returns policies or have actively closed accounts of serial returners.
The uncomfortable truth: the cost-of-living crisis is changing shopper ethics
Let’s call it what it is. Financial pressure is nudging some consumers into behaviour they wouldn’t previously justify. Wardrobing, buying clothing, wearing it (sometimes with the label still attached), then returning it for free with a full refund, has risen as consumers feel the strain from the cost-of-living crisis.
And it’s not marginal. In our latest research, 32% of shoppers admit to wardrobing, rising to 43% among under-34s. A third say they’re doing it more often because of cost-of-living pressures.
For brands, this is the key strategic shift: returns are no longer just a logistics problem. They are a behavioural economics problem and increasingly a brand trust and fairness challenge.
Customers still demand free returns, but they also want fairness
There’s a paradox at the heart of this moment. Free returns remain a major driver of brand choice and purchasing: 69% believe returns should always be available, and 62% say returns policies influence purchase decisions.
However, at the same time, most customers will accept limits on free returns if those limits are framed as protecting the majority. In fact, 72% agree with restrictions when positioned that way.
The key insight from this research is that the social licence is already there. 87% believe ‘serial returners’ exploit the system. This creates an opportunity to position returns policies as fairness and sustainability measures, supported by strong communication and transparency.
This is not a “CX versus cost” trade-off. It’s about framing the returns policy as a fairness and sustainability issue and letting communication do the heavy lifting.
ASOS is testing the playbook: target the outliers, while protecting the mainstream
Our research testing the ASOS free-returns policy and app feature among 1,000 UK adults offers a clear signal on what ‘good’ looks like in practice.
Customers with a return rate below 70% retain free returns
Customers returning more than 70% of items may face a £3.95 fee if they keep less than £40 worth of goods
At 80% or higher, an additional £3.95 restocking fee applies
Customers can track their return rate via a new in-app feature, with guidance on avoiding charges
The headline data is compelling. 84% consider the approach “fair”, including 51% who say it is “very fair”.
There is a potential commercial downside. 10% of ASOS shoppers say they would shop less, though this drops to 5% among loyal ASOS customers, suggesting the biggest impact is likely among less-committed shoppers.
But the more important strategic insight is about calibration. With average return rates around 20%, and only around 3% of surveyed shoppers likely to hit the ASOS 70% returns threshold, the policy design appears aimed at outlier serial returners, not everyday customers.
The real risk isn’t the policy, it’s poor communication and transparency
Many brands introduce return restrictions as operational changes, but customers perceive them as value statements. Without transparency and a clear narrative, limits can appear profit-driven and trigger backlash. Handled well, they can instead build trust by showing consumers the brand is protecting the majority.
This is segmentation in policy form. Reducing subsidy for extreme behaviour while keeping the free returns promise intact for most customers.
Done transparently, limits can also strengthen brand reputation by signalling that the brand is willing to act against a minority that abuses the system.
Major customer policy changes must be driven by communications teams, not treated as operational updates and left to customer-facing staff to explain.
In practice, that means a returns strategy should be accompanied by a clear corporate narrative:
A fairness narrative: protecting free returns for the majority
A transparency narrative: clear thresholds, clear consequences, clear rationale
A trust narrative: addressing misuse that most customers already perceive
Key take-out: Don’t just announce enforcement rules, explain the social contract.
AI will make this unavoidable and more enforceable
There’s another accelerant here. Behavioural data and AI will increase visibility, making it easier to identify patterns, outliers and boundary-pushing behaviour.
For customers, this means gaming the system becomes harder to hide. As long as you stick to the rules, the majority will continue enjoying free returns at their current rates, even occasional wardrobing during the cost-of-living squeeze. But retailers are monitoring behaviour, and if you don’t play by their rules, you risk paying a fee or having your account closed.
For brands, it means moving beyond blunt instruments. The future is precision policy: detecting, deterring and de-escalating the small cohort that creates disproportionate cost, without punishing everyone else.
The bigger trend: ‘unlimited’ policies are going to keep shrinking
With companies facing rising cost pressures from inflation, taxes and global competition, the days of unlimited-use policies may be numbered.
In that context, ASOS may be setting a benchmark that others will follow: a blueprint for balancing customer expectations with sustainable operational costs, without eroding brand reputation.
The winning brands won’t be those that simply tighten the rules. They’ll be the ones that set clear boundaries and communicate them transparently, with a clear narrative that protects and enhances the experience of the majority.
If you want to understand how customers perceive fairness, value and boundaries as expectations shift, robust research matters. At The Harris Poll UK, we help brands uncover not just what customers say they want, but where social licence exists and how policy changes will be received. We work with organisations to test decisions, stress-test reactions and build credible narratives that protect trust. If you’re rethinking customer policies, evidence-led insight can help ensure those changes are understood, accepted and supported. Get in touch to find out more.