Zalando no longer wants to worry about the large number of returns it has to deal with. At a number of German locations, the online giant is going to outsource returns processing.
Zalando has a high return rate; half of the products it sells are returned. In distribution centres in Erfurt, Lahr and Mönchengladbach, Germany, it will outsource that returns handling. 'Specialised external suppliers' will take on the task in future, Zalando reports to Wirtschaftswoche. Which suppliers this will involve is not yet clear.
With the move, Zalando says it wants to simplify processes at its distribution centre. Internally, however, there is talk of a cost-cutting measure, with the 570 employees who deal with returns at the logistics centres possibly being reassigned to other positions within Zalando.
'Zalando adapts the rules of the game'
The online giant appears to be overhauling its logistics processes in more areas. Previously, Zalando prided itself on free shipping, for example, but since April it has been charging shipping costs in several countries anyway, with Britons, Irish and Spaniards who spend for less than 24.90 euros paying around 3 euros for delivery. Italy has been paying for delivery for some time.
Zalando says it has no plans yet to also charge shipping costs in the Netherlands. "There is a turnaround in terms of free shipping," Els Breugelmans, e-commerce expert at KU Leuven told De Tijd. "It is telling that Zalando, the company that changed the rules of the game in the sector, is changing the rules again."