I recently stumbled upon a Forbes Slovenia article detailing how Zalando has blocked thousands of users for returning too many orders. To be honest, the article grabbed my attention mostly because I had a similar experience myself. Some time ago, I ordered the same shirt in three different sizes and immediately returned two. At the time, it didn’t even cross my mind as an issue since Zalando has always promoted free returns as one of its major competitive advantages.
Today, though, I’m left wondering—is punishing your own customers really the best solution?
Zalando built its popularity precisely by offering free and easy returns, making shopping stress-free even when customers are uncertain about sizes or models. Recently, however, they temporarily suspended the accounts of their most “problematic” customers—around 0.02% of their users—for one year due to excessive returns. While I understand this measure, I can’t help but wonder if there’s a more positive way.
One alternative, which seems far more constructive, is rewarding responsible customer behavior. Rather than penalizing, Zalando could offer additional perks to those who rarely return items. Retailers like Stitch Fix have successfully demonstrated that customers appreciate rewards—like discounts on future purchases or double loyalty points for keeping their orders. Research from Blue Yonder shows that 62% of customers would keep an item if incentivized to do so.
Another path Zalando might take is better informing customers about sizing before the purchase. I’m personally impressed by approaches like Walmart’s augmented reality (AR) technology, enabling customers to virtually “try on” clothes through their smartphones. This drastically reduces incorrect selections and thus return rates. Zalando could integrate a similar technology as a standard feature in their customer experience.
However, that’s a long-term approach requiring significant time and investment. A simpler solution, already implemented by sellers on Amazon Marketplace, is providing precise measurements for each clothing item. Most customers don’t want to return what they buy; they merely want to confirm their correct size. Clearly providing that information upfront could practically eliminate size-related returns overnight, with minimal costs and no additional tech development required.
It’s also worth rethinking the return model itself. Why not offer an option for “home trials” as an additional premium service for a small fee? If the customer decides to keep at least one item, the fee could be deducted from the final price. This way, Zalando could transform returns from mere costs into opportunities for generating additional value.
To sum it up, Zalando and other retailers could effectively tackle the issue of frequent returns with a much more positive and beneficial approach by rewarding good behavior, improving product information, and viewing returns as a premium service rather than a burden. This isn’t just customer-friendly—it’s also a strategy that enhances long-term customer loyalty. At least that’s my take.