Zalando changes the rules of the game: starting today 30-day returns in Italy as well

In the world of e-commerce, especially in the fashion industry, the phenomenon of returns is one of the most complex challenges to manage.

This is not just a logistical issue, but a key element that affects brand perception, customer loyalty, and operating costs.

For consumers, the ability to return an item without difficulty means being able to buy without risk and is the most relevant factor in converting visits into purchases; for businesses, however, it is a significant cost that must be managed with targeted strategies.

Among the market leaders setting the standard in returns, Zalando stands out for its revolutionary vision.

Since its inception, the German platform has made free and up to 100-day returns a cornerstone of its business model, earning it a leading position in the industry.

However, the balance between economic sustainability and customer satisfaction is delicate, and it is on this balance that Zalando’s recent change in its returns policy is placed.

In October 2024, Zalando reduced the return window from 100 days to 30 days in four key markets-France, Spain, Austria, and Switzerland-and now in Germany, Italy, and the Netherlands.

What will this change entail, what will be the repercussions and what will be the benefits for brands? Yocabé’s Marketplace Observatory took an in-depth look at this transformation to assess the impact on purchase and return behaviors. Here’s what we found out.

In the fashion industry, returns are an integral part of the shopping experience.

Online shopping involves a level of uncertainty that does not exist in physical stores: sizes, colors and materials may not meet customer expectations. Industry studies show that:

• About 30-40% of fashion items purchased online are returned, a significantly higher percentage than in other sectors.
• 94% of European users would buy again from a site if the process of returning products is simple and hassle-free
• For a 86% of users, free returns increase their loyalty to a Brand, encouraging repeat purchases
• Top reasons for returns include errors in size selection (60 percent), defective items (25 percent) and discrepancies in expectations (15 percent).

These numbers underscore how crucial it is for fashion companies to ensure a clear and frictionless return policy.

However, this need generates significant costs, including reverse logistics, quality control, and reimbursements.

Zalando realized early on that a generous return policy could be a competitive advantage.

The 100-day window was not just a business strategy, but a statement of trust to customers.

This choice led to:

• An exponential increase in the customer base.
• An increase in consumer loyalty, thanks to the security of being able to easily return an item.

However, recent economic pressures and sustainability challenges have led Zalando to revise this policy in some markets.

But how will consumers react? Our analysis delves into this question.

But how will consumers react? Our analysis delves into this question.

We analyzed the totality of returns, which we manage on behalf of our partners, made by their customers across Europe on Zalando between January and October 2024, before the new regulations came into effect:

• In Europe, the 91% of returns are made within the first 30 days. In particular, 62 percent of returns are concentrated between days 3 and 13, showing that the new time window covers the vast majority of cases. The day with the highest peak of returns is the fourth, at 7%.
• In Italy86% of returns occur in the first 30 days with a peak of 7% on days 7 and 10.
• What is happening in other countries where change has already happened or will happen soon?
  • France: 89% of returns occur within the first 30 days, with a peak of 6% recorded on day 7.
  • Spain: 82% of returns are completed within the first month, peaking at 8% on day 10.
  • Austria: 95% of returns are made within 30 days, with the highest peak on the third day at 10%.
  • Switzerland: 81% of returns are concentrated in the first 30 days, with a peak of 5% on the third day.
  • Germany: 95% of returns occur within the 30-day window, with a significant peak of 10% on day 10.
  • Netherlands.: 93% of returns occur in the first 30 days, with a peak of 11% recorded on day 4.

These results reflect a common element: most consumers in the affected markets are able to complete the return quickly.

However, the perception of change is not only a matter of numbers, but also of ingrained expectations and habits.

In Italy, Spain, and Switzerland, where a significant portion of customers used the extended window, the risk of dissatisfaction may be higher.

In France, Germany and the Netherlands, however, the shift to 30 days seems almost natural.

• Zalando with the reduction in return days will improve the availability of inventory to go on sale
• Brands will have the ability to replenish returned items in their inventory more quickly, reducing temporary out-of-stock situations, ensuring that the most in-demand items remain available throughout the season, and reducing the likelihood of end-of-season surpluses. A shorter window could lead to a modest reduction in the return rate.
• Consumers will be affected but to a small extent, given the rates and what has already happened in other countries where the program has already been active for a few months, the 30-day return is already a long time, plus on the other hand Zalando always leaves you with the assurance that handling refunds will be easy.

The change in Zalando’s returns policy, with the reduction of the window from 100 to 30 days, represents a breakthrough for the fashion e-Commerce industry . This change improves logistics efficiency, allows brands to replenish products quickly, and reduces end-of-season surplus. For consumers, the impact will be limited as most returns already occur within the first 30 days.

Yocabé supports its partners in this transition with advanced dashboards to monitor returns and optimized processes that integrate data analytics and logistics solutions. We are working on developing an artificial intelligence project to reduce returns through predictive models, improving customer satisfaction and brand operating margins.