Asos’s newly-updated UK returns policy has been praised for “getting serious about excessive returns”, as the digital retail giant is expected to be handling a reported 700,000-plus seasonal returns.

Launching its new transparency tool for shoppers from tomorrow (6 January), customers with a return rate below 70% will continue to benefit from free returns.

It said shoppers whose historical returns surpass 70% of the total value of their past orders will also be exempt from paying the fashion retailer’s £3.95 charge if they return less than £40 worth of products from an order. But customers with a return rate of 80% or higher will be subject to an additional restocking fee of £3.95, on top of the £3.95 returns charge.

The policy, which intends to give more flexibility to frequent returners who keep most of the products they purchase, has been praised by global fulfilment provider fulfilmentcrowd that has called the move a “strong signal that retailers are getting serious about tackling the growing strain of excessive returns”.

The update comes after Asos rolled out a £3.95 return fee for customers with a high return rate in October 2024, unless they kept at least £40 worth of the items.

Under the new development, customers will be able to view their personal return rate in the company’s app, along with guidance and tips designed to help them make more informed purchasing decisions. 

Shoppers who successfully improve their return rate will no longer be charged return fees, Asos confirmed.

New tools designed to help customers make better purchases, include videos and 360-degree imagery of models wearing the items, clearer size information and personalised recommendations via its ‘fit assistant’.

Asos executive vice-president of customer and commercial Ben Blake said: “We’re committed to keeping free returns available for all customers in all core markets, while ensuring we do so sustainably. 

“To support this, we’re helping customers make informed choices by showing their return rate.

“For the small group with the highest return rates, we provide helpful hints and tips for shopping with confidence, and we’ve already seen this approach help customers make more informed decisions”.

Wider industry analysis has revealed that many retailers are cracking down on mass customer returns due to what they see as the abuse of returns policies. According to fulfilmentcrowd CEO Lee Thompson, “the cost of processing and managing returns has risen sharply in recent years, and this [Asos] decision is a clear attempt to protect both profitability and operational efficiency.

“It also reflects a wider shift across the fashion and e-commerce sectors towards creating a more sustainable and manageable returns culture. We expect to see more retailers adopting similar measures as the industry grapples with this challenge.”

Katie Shepherd, head of Marketing at fulfilmentcrowd, added: “Asos is moving from behind-the-scenes enforcement to proactive transparency — putting a shopper’s returns rate in-app and giving people the chance to change behaviour before they’re penalised. This is a shift towards tiered, data-led policies rather than blanket account bans”.