H&M limits free delivery

H&M is the latest major fashion retailer that’s changing its free delivery policy. The Swedish clothing company is now asking for a delivery fee for loyalty club members. This only applies to small online orders, but still, it’s another sign of what’s to come in European ecommerce.

H&M has changed its customer loyalty scheme. The latest versions separates members into a base tier and a plus tier. In which category a customer belongs, depends on how many points they earned in the past year, Samuel Holst head of H&M Club tells Reuters. H&M is present in 71 countries across the globe and in 16 of them, the company has an H&M Club. The plan is to add seven more markets, including the US, by the end of the year.

Free delivery for orders over 25 euros

If a H&M customer is identified as a base member, they will need to spend at least 25 euros to still get free delivery. In its home market of Sweden though, the minimum order value to qualify for free delivery is at 200 Swedish crowns, or 19.16 euros.

Cut logistics costs and restore profitability

Reuters says H&M has reintroduced delivery fees for loyalty club members to cut logistics costs and help restore the group’s profitability. “H&M is investing heavily in adapting to rapidly changing consumer habits after seeing profits fall and inventories pile up in recent years.”

Zalando also reintroduced delivery fee

As said, H&M is the latest to ask for a delivery fee again. That other major European fashion company, Zalando, introduced a minimum order threshold in Italy back  in November last year.