Zalando, the German online fashion giant, has recently implemented a controversial policy that blocks over 10,000 customer accounts for excessive returns. This decision, which took effect in March 2025, has sparked outrage among affected customers, particularly in Switzerland, where online shoppers are known for their high return rates.
According to a spokesperson for Zalando, the measure targets customers who have placed numerous orders and returned the majority of these items within the last twelve months. This group represents approximately 0.02 percent of Zalando's vast customer base of over 52 million, but the impact is significant, especially considering that Swiss consumers are among the highest returners in Europe.
In fact, a study by logistics provider DPD revealed that 27.1 percent of all ordered items in Switzerland are returned, a staggering figure that highlights the challenges faced by online retailers. Zalando's own statistics show that nearly 50 percent of items ordered from their platform are sent back, a situation that has strained the company's operational efficiency and profitability.
This drastic step comes as Zalando grapples with increasing competition from low-cost Chinese retailers like Shein and Temu, which have been luring customers with aggressive pricing strategies. To combat this, Zalando has shifted its focus towards higher-priced segments and is implementing strategies to reduce return rates. The company has also announced the acquisition of competitor About You, although this move has led to a decline in Zalando's stock price, raising concerns among investors.
In light of these challenges, Zalando has shortened the return period for items from 100 to just 30 days in many countries, aligning with existing practices in Switzerland. Additionally, returns are now only free for orders exceeding a minimum value of 34.90 Swiss francs. This change reflects a broader trend in the retail industry, where companies like Zara and Uniqlo have already begun charging for returns.
Despite the backlash from customers, Zalando's spokesperson emphasized that the decision to block accounts is part of a broader strategy to manage costs and improve profitability. Darius Zumstein, a digital marketing professor at the FHNW, views this measure as a necessary response to the economic pressure exerted by competitors. He noted, "This is a de-investment in bad, unprofitable customers," suggesting that the company is focusing on cultivating a more sustainable customer base.
However, the implementation of this policy has not been without controversy. Many affected customers have taken to social media and platforms like Trustpilot to express their frustration over sudden account closures. One user described the experience as "a disgrace," while another criticized the lack of prior warning. Such sentiments are echoed by numerous others who feel that Zalando is punishing loyal customers for engaging in a shopping behavior that has been encouraged in the past.
Historically, Zalando has promoted its return policy with the slogan "Shout for joy or send it back," creating an expectation of hassle-free returns. Now, as the company pivots away from this approach, consumers are left questioning what constitutes excessive returns and how they can avoid being penalized.
Experts suggest that Zalando's move may reflect a growing trend in the online retail space, where the burden of returns is becoming increasingly unsustainable. A study from the University of St. Gallen found that when customers are made aware of the environmental impact of unnecessary returns, they tend to make more conscious purchasing decisions. This insight could inform future strategies for Zalando and other retailers aiming to reduce return rates.
In Switzerland, the issue of returns has reached a critical point, with many consumers expressing concern over the environmental implications of their shopping habits. The increase in package deliveries has led to traffic congestion in urban areas and heightened pollution levels. As the postal service reported processing 194.8 million packages in 2023—a 5.4 percent increase from the previous year—it's clear that the logistics of online shopping are becoming more complex.
As Zalando continues to navigate these challenges, the company is also focusing on enhancing its digital shopping experience. Improved size guidance, virtual fitting rooms, and personalized recommendations are all part of Zalando's strategy to ensure that customers are satisfied with their purchases and less likely to return items. However, as Zumstein points out, it may only be a matter of time before the company reconsiders its free return policy altogether.
The recent changes at Zalando are indicative of a broader shift in the online retail landscape, where the balance between customer satisfaction and operational viability is becoming increasingly delicate. As retailers adapt to changing market conditions, customers may need to adjust their shopping behaviors to align with new policies aimed at curbing excessive returns.
In conclusion, Zalando's decision to block accounts for excessive returns marks a significant turning point in the online shopping experience. While the company aims to foster a more sustainable retail environment, the backlash from customers underscores the complexities of managing consumer expectations in an era where convenience has often been prioritized over responsibility.
