Many Unhappy Returns

18th August 2021

One escalating problem facing shoppers and sellers is that of returning items to the EU - particularly if they are being rejected because of unexpected taxes and duties.

Strictly speaking, the cost of returns for unwanted goods purchased online from the EU should be paid for by the receiver. However, many shoppers are simply refusing to .pay these unexpected fees and refusing to take delivery. If the item is rejected at the doorstep, it is left to the courier to take them away and store them

It's a problem that also applies to UK-based sellers shipping to EU buyers, of course.When rejected goods arrive back at depots on the Continent, they face significant new customs paperwork and potentially new fees. "Lots of large businesses don't have a handle on it, never mind smaller ones," says Adam Mansell, boss of the UK Fashion & Textile Association (UKFT).

For UK exporters receiving back items from the EU this is a costly exercise. Mr Mansell told the BBC it's "cheaper for retailers to write off the cost of the goods than dealing with it all, either abandoning or potentially burning them."

Currently at least four major UK High Street fashion retailers are stockpiling returns in Belgium, Ireland and Germany. One brand will reportedly incur charges of almost £20,000 to get the returns back.

Source - Parcel Hero - https://www.parcelhero.com/research/brexit-study