Online fashion retailer Asos recently introduced additional fees for customers who return lots of items, marking a significant shift in the fast fashion model that has relied on free, frictionless return policies as a key competitive advantage.

And now the fashion retailer has introduced a new tool to show shoppers exactly what their return rate is, and if they are about to incur a fee. The new policy is aimed at encouraging shoppers with the highest return rates to cut back.

It’s not clear yet if other fast fashion brands such as H&M, Shein, Zara and Primark might follow Asos’s lead on returns, and whether it will change shopping habits.

There are two common fast fashion shopping scenarios. The first is where customers buy three or four versions of the same item in different sizes, then return the ones that they don’t want. The second is where a shopper will buy three or four completely different dresses, for example.

The first approach, called “bracketing” in the retail industry, may be affected more by the new cost of returns. So it may encourage some shoppers to cut down on the sizes they order, perhaps from four to two, if they continue to use Asos. This may have somewhat of a positive environmental effect, if it reduces the size of orders.

The second scenario, impulse buying, generates almost the 40% of all online spending globally, with clothing being the most frequently purchased category. But when faced with return fees, impulse buyers are significantly more likely to avoid the return process entirely, if it is seen as complicated or pricey.

A study in the US found 75% of online consumers have kept unwanted items due to complicated or expensive return processes, rather than initiating a return. This means instead of items going back to the online shop (where they can potentially be refurbished and resold), they remain in consumers’ homes or end up in local landfills.

Rather than reducing overall consumption, the return fee merely shifts the waste burden from the retail supply chain to individual households and council waste systems.

However, Asos says it is committed to sustainability. Its corporate strategy states that: “We recognise our responsibility for reducing our impact on the environment and protecting the people in our supply chain.” Meanwhile, Shein says: “We are working hard to drive continued progress toward our sustainability and social commitments.”

The environmental implications of Asos’s new policy, and fast fashion generally, reveal a complex picture. To understand what they are, we need to examine what happens to unwanted clothing in our fashion system, and what incentives genuinely drive more sustainable outcomes.

The returns problem

The textile sector is a significant contributor to global carbon emissions, accounting for 8-10% of worldwide emissions – surpassing the combined carbon footprint of aviation and maritime shipping. Within this broader impact, product returns create additional environmental damage through a cascade of effects: extra transportation, packaging waste, energy-intensive inspection and sorting processes, and ultimately disposal.

The costs of fast fashion to the environment are high.

When an item is returned, it enters a reverse logistics system (sending goods back from the customer to the retailer) that is far less efficient than the original chain from manufacturer to supplier. Returns often require individual courier pickups, adding transportation costs and emissions.

So on the surface, return fees appear to offer a straightforward solution: discourage returns, reduce transportation emissions, ease the burden on waste systems. But this logic fails to account for consumer behaviour when faced with financial penalties.

Garments languishing unworn in closets represent entirely wasted resources: all the water, chemicals, energy and labour invested in their production yield no value. Discarding an item of clothing locally just shifts the burden to council waste systems that are often unprepared to handle textiles.

Return fees, in other words, don’t necessarily solve the waste problem. They simply reduce consumers’ options, sometimes forcing them towards worse alternatives.

This reveals a deeper truth: the environmental problem isn’t returns but rather fast fashion itself. The system generates excess production by design. Retailers prefer inventory buffers to avoid being out of stock. This excess is fundamental to how fast fashion operates.

What would make a big difference

Charging for returns is unlikely to improve environmental outcomes that much. The following measures could be more effective:

Extended producer responsibility: In France, retailers are required to finance their collection and sorting systems, creating incentives to design more durable products and manage end-of-life properly. This shifts responsibility from consumers to producers, where it belongs.

Taxation on hazardous materials: Sweden’s proposed tax on clothing containing harmful chemicals targets the production phase, where most environmental damage occurs.

Investment in recycling infrastructure: Research clearly shows that viable textile-to-textile recycling at scale is the bottleneck. Without it, reuse becomes the only circular option.

Design standards: Polyester blends complicate recycling. Requiring higher recycled content percentages or limiting fibre blends would address some root causes of waste.

Transparency in returns data: Multiple studies show that retailers lack basic data on where returned items end up. Mandatory disclosure of what they do with returned items would expose the destruction problem and increase their accountability.

The path to greater sustainability in fashion probably isn’t through discouraging returns. It’s more closely tied to changing how clothing is designed, manufactured and valued. The real question isn’t whether returns should cost money – it’s why we’re producing products no one wants to keep in the first place.