Myntra to introduce changes to its return policy, lower convenience fee

Online fashion retail company Myntra is going to make changes to its fee structure on product returns for customers with high return rates, The Economic Times (ET) has reported.

The experiment is being introduced under a project called "return-as-a-service" and it comes a few months after Myntra applied a flat "convenience fee" ranging from Rs 199 to Rs 299 on every order made by customers with a high rate of product returns, the report said. These customers usually made twice as many or more product returns as the average customers, people aware of the subject told ET.

The company is now expected to levy a lower fee on returns over the next few weeks with a fee of Rs 15-30 per return after these high return-rate customers exhaust a set amount of free returns.

Myntra is of the view that the flat charge of Rs 199 to Rs 299 per order may impact user behaviour that is adverse to Myntra's business and is likely to affect not just high-return users but also their wider circle. The company said that although is a small cohort of the overall customer base, it is still a significant number, the ET report said.

The above-mentioned "convenience fee" was imposed on 2 to 5 per cent of the platform's total customer base, which is said to be approximately 50 million active users. The ET report said that fashion products experience a higher rate of return than the e-commerce industry in general.