Online Retailer Boozt Blocks 42,000 Customers Over Excessive Returns, Citing Environmental and Business Concerns

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Sweden-based online fashion retailer Boozt AB has made headlines by blocking 42,000 customers from its platform due to excessive returns, emphasizing both financial and environmental consequences. Boozt, which offers a diverse range of clothing and beauty products through its multi-brand online store, took this step to address the rising costs of excessive returns and their negative impact on the environment.

Customers who were indefinitely blocked were frequently returning items due to sizing issues or buyer’s remorse. Despite constituting less than 2% of Boozt’s customer base of over 3 million, these customers accounted for a substantial 25% of the total return volume. This trend prompted the company to address the issue, asserting that these customers were exploiting the generous free shipping and returns policy, affecting the company’s profitability and other customers’ experiences.

Boozt’s decision has proven beneficial not only for the business but also for the environment. By curbing unnecessary returns, the retailer managed to save approximately 791 tons of CO2 emissions in 2022, equivalent to eliminating the need for around 600 delivery trucks in a year.

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This move highlights the broader concern within the e-commerce industry regarding the environmental impact of online shopping returns. With the inability to try items before purchasing and the prevalence of free returns, online shopping leads to an increased number of exchanges and returns compared to in-store purchases. Retailers like Boozt are recognizing the need to balance business sustainability with environmental responsibility, taking steps to address excessive returns and their implications.