Zalando maintains free returns to compete with H&M and Zara

German e-commerce giant Zalando is maintaining its policy of free returns, distinguishing itself from competitors like Zara and H&M that have recently implemented stricter return policies.

Sebastian Becker, Zalando’s head for the Nordic region, stated that free returns serve as a competitive advantage, especially since the company operates exclusively online without physical fitting rooms. The company aims to “move the fitting room into the customer's home.”

While return rates can reach up to 50 percent, Zalando is utilizing artificial intelligence to reduce the number of “unnecessary returns.” The company noted that while global return rates have historically been high, customers in the Nordic region generally return items at a lower rate.