The eCommerce industry is evolving rapidly, adapting to current market conditions and consumer needs. Asos is introducing return fees for selected users, while Klarna is enhancing its virtual shopping assistant to streamline the buying process. Check out the latest summary of key news and stay up to date! You’ll find it all in the latest, 80th edition of the Advox Press Release. Read it now!
Asos introduces return fees for selected users
The fashion industry is tackling the problem of excessive returns in online stores through various strategies. Some companies are improving product presentation on their websites and implementing tools to help customers better estimate their size. Others are opting to introduce return fees, a strategy also adopted by the British marketplace Asos. However, the new return policy has sparked backlash from customers. Why?
Asos has decided to charge return fees only for selected users, those with a "high return rate." Customers identified as part of this group were notified via email, which led to widespread dissatisfaction, particularly due to the lack of transparency in how the return rate was calculated.
Customers in this group will now face an additional return fee of £3.95 (about 20 PLN). To avoid this fee, a customer must keep items worth at least £40 from their order. For those with a Premium status (costing £9.95 per year), this threshold drops to £15.
In addition to concerns over the lack of clarity in the criteria for being assigned to this group, customers point out that frequent returns are often not their fault. They argue that clothing sizes on Asos are frequently inaccurate, and the quality of materials leaves much to be desired.
Asos is not the only company in the UK to introduce return fees. Brands such as H&M and ZARA also charge for returns, and a similar approach - imposing fees on a select group of customers—has been adopted by the online boutique Prettylittlething. Will Asos’ policy effectively reduce the number of returns, or will it deter customers? We’ll find out by observing the company’s actions in the coming months.
Will the Klarna app change the way we shop online?
Klarna, a company best known for offering deferred payment options, is significantly expanding its scope. Its goal is no longer just to provide flexible payment options but to revolutionise the way customers shop online. In its mobile app, Klarna is focusing on developing a virtual assistant, whose capabilities are continuously enhanced through AI algorithms (developed in collaboration with OpenAI). These algorithms analyse user preferences to deliver the most relevant shopping recommendations in real time.
Within a single interface, users have access to a variety of functions, such as:
- comparing offers from different brands,
- browsing reviews from other buyers,
- checking product price history.
Additionally, the Klarna app allows users to manage orders and returns, as well as store digital versions of loyalty cards. Klarna’s virtual assistant is now available in 23 markets and supports 35 languages. Thanks to this assistant, the time needed to complete purchases is reduced from an average of 11 minutes to just 2 minutes.
EY Future Consumer Index – who will be the consumers of the future?
The way consumers shop changes year by year, and each year EY examines new trends, presenting its findings in the "EY Future Consumer Index" report. In 2024, consumers are both open to innovation and increasingly cautious about online threats, while becoming more conscious in their evaluation of brands. What does the report reveal?
- 72% of shoppers declare that they will focus more on value for money when making purchases.
- 63% of respondents feel less pressure to follow the latest fashion trends.
- Over half of consumers (61%) admit to making a purchase based on recommendations from online creators, showing significant trust in their content.
In particular, the profiles of so-called micro-influencers – creators with a smaller following – are gaining popularity. Their content is perceived as more authentic and valuable than ads from online celebrities.
On the other hand, many consumers still approach shopping with caution. Concerns about rising living costs, climate change, and geopolitical tensions lead to more thoughtful purchasing decisions. Additionally, 61% of consumers express concerns about identity theft and improper data storage, marking a 5 percentage point increase compared to the previous year. This rise may be attributed to the recent wave of cyberattacks and data breaches.
EY’s study is one of the largest of its kind globally, analyzing consumer behavior over time and across continents. The research included over 23,000 consumers from the Americas, Europe, Asia, Africa, Australia, and Oceania.
Want to learn more? Check here:
Asos paid returns
AI Assistant in the Klarna App
EY Study: "EY Future Consumer Index"
