Patagonia faces criticism for ‘earth usage fee’ on online orders to curb excessive returns
Return rates in China’s online clothing sector, particularly for women’s apparel, can reach as high as 50 to 60 per cent
American outdoor apparel brand Patagonia is facing significant backlash online after implementing an “earth usage fee” for online orders, aimed at curbing excessive returns.
Announced on March 30, the fee applies exclusively to purchases made through its Tmall store, a premium online shopping platform operated by Alibaba, which also owns the South China Morning Post.
During last year’s Double 11 shopping festival, Patagonia’s Tmall store shipped 16,179 packages, leading to a staggering return rate of 69.7 per cent, with 11,277 packages sent back. The brand reported that this resulted in nearly 200 tonnes of carbon emissions from shipping and an additional 40 tonnes from the returns.
In April, celebrated as Earth Month, the store has launched an initiative to implement a shipping fee, referred to as the “earth usage fee.” This fee includes a charge of 15 yuan (US$2) for the first item purchased and 5 yuan for each additional item.
If customers keep their purchases, they will receive a refund for the shipping fee. However, if items are returned for reasons unrelated to product quality, the fee will not be refunded based on the number of items returned, and customers will also need to cover return postage.