LuLaRoe, the direct sales behemoth famous for its comfy leggings and vibrant apparel, has just made a significant change to its return policy that has left many consultants feeling anxious. This update has stirred quite a commotion among sellers who are already struggling to keep their businesses afloat.
Back in April 2017, LuLaRoe had introduced a generous return policy for consultants going out of business (known in LuLaRoe lingo as GOOB). Under this policy, consultants could return unsold inventory for a full refund, and the company would even cover shipping costs. This was a welcome relief for those looking to exit the business while minimizing losses, especially considering the volume of inventory many had accumulated.
However, in a recent announcement, LuLaRoe revealed it would revert to a policy where only 90 percent of the returned goods’ value would be refunded, and consultants would now have to pay for return shipping. This change is likely to result in significant financial losses for those looking to close their operations. Additionally, a petition is circulating, urging the company to honor the previous 100 percent refund policy for those who had already begun the GOOB process before the update.
LuLaRoe clarified that this isn’t a new policy but a return to their previous guidelines, stating that the April rules were merely a temporary measure. They now require that returns only be accepted on items purchased directly from LuLaRoe, excluding many goods traded among consultants—a common practice within the company. Furthermore, items must be unworn, unwashed, and returned in their original packaging, which could pose a challenge for many sellers who display and allow customers to try on products during sales events.
Another significant drawback is that seasonal and discontinued items can no longer be returned. This is particularly troubling for consultants left with unsold holiday-themed clothing, as they cannot even recoup costs for items like Valentine’s Day leggings or Christmas sweaters. Since consultants cannot select specific patterns when ordering—receiving an assortment instead—this leaves many stuck with inventory they can’t sell.
Starting a LuLaRoe business requires a hefty investment, with initial packages costing between $4,812 and $6,784, plus ongoing restocking expenses. This leaves many consultants with a mountain of unsold inventory as they attempt to wind down their businesses, and the new policy complicates an already challenging situation.
LuLaRoe stands by their policy, claiming it provides a fair exit strategy for independent retailers. For those exploring options beyond LuLaRoe, consider checking out this insightful article on treating infertility for more information.
In summary, LuLaRoe’s recent policy changes have left many consultants feeling frustrated and uncertain about their futures, as the company’s shift from a more lenient return system to stricter guidelines makes it harder for sellers to clear out unsold merchandise.