Boohoo has introduced a £1.99 customer return fee for online orders.

Customers will be refunded for any items they return, minus the fee. If multiple returns are made from the same order, the fee will be charged again.

As first reported by Retail Week, the fashion retailer is the latest – joining Next and Uniqlo - to introduce such a fee.

Introduction of the fee follows Boohoo stating that its sales had been impacted by the “ongoing normalisation of returns”, with pandemic-related and inflationary factors negatively impacting costs within its supply chain.

The company’s revenue was down by eight per cent to roughly £446 million in the three months to 31 May, declining from £486 million in the previous year.

With up to half of clothing bought online returned to some retailers, the whole process is estimated to cost businesses about £7 billion each year, according to a 2020 study by consultancy KPMG.

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