In a surprising move, direct sales leader LuLaRoe has altered its return policy, leaving many of its consultants feeling anxious and uncertain about their futures. Renowned for its soft leggings and vibrant clothing collections, LuLaRoe’s recent decision has stirred up a storm among its sellers.
Back in April 2017, the company had introduced a more lenient return policy, allowing consultants who were exiting the business (referred to as GOOB in LuLaRoe lingo) to return unsold items for a full refund, including shipping costs—a significant relief for those with surplus inventory. This was aimed at discouraging GOOB sales that could flood the market with discounted items, making it challenging for active consultants to maintain their retail prices.
However, as of last Wednesday, LuLaRoe announced a shift back to a more rigid policy: refunds will now only be 90% of the merchandise value, and return shipping costs will no longer be covered. This change could result in significant financial losses for many consultants.
What’s more, a petition has emerged urging LuLaRoe to honor the original 100% refund for those who had already initiated the GOOB process before the recent policy shift. According to a statement from LuLaRoe obtained by Inc., this adjustment is not a new policy but a reversion to previous guidelines, claiming that the April provisions were merely a temporary measure.
The updated policy stipulates that returns will only be accepted for items purchased directly from LuLaRoe, thus excluding many items traded among consultants—a common practice within the LuLaRoe community. Additionally, only items bought within the last year are eligible for returns. The conditions for returns are also more stringent, requiring items to be unworn, unwashed, folded with hang tags, and in their original packaging. Given that consultants often display merchandise at home or during sales events, this could create complications, making returns nearly impossible for many.
To add to the challenges, LuLaRoe will no longer accept returns on seasonal or discontinued items. This is particularly concerning for consultants stuck with unsold holiday-themed merchandise. Since consultants cannot order specific patterns, they often end up with unsellable items, such as unique shamrock leggings that might not appeal to customers post-St. Patrick’s Day.
Starting a LuLaRoe business requires a significant financial investment, with starter packages ranging from $4,812 to $6,784. Consultants are encouraged to continually reinvest their earnings into restocking inventory, leading to a buildup of unsold items when they decide to exit. The new return policy complicates matters for those looking to downsize their inventory.
In their statement to Inc., LuLaRoe emphasized that they provide a fair and generous exit strategy for Independent Fashion Retailers. They claim the updated policy is simply a reaffirmation of the long-standing rules that each consultant agrees to upon signing up. For more insights into navigating such changes, you can explore our privacy policy here.
In summary, LuLaRoe’s recent policy alterations have left many consultants in a precarious situation, struggling with potential financial losses and inventory challenges. As these changes unfold, it’s essential for consultants to seek support and resources to navigate their options effectively, like those offered by the Center for Reproductive Health at UCSF.