In a significant shift that has left many LuLaRoe consultants anxious, the direct sales powerhouse has announced changes to its return policy. Known for its soft leggings and vibrant apparel, LuLaRoe has stirred up concern among its sellers, many of whom are facing the tough decision to exit their businesses.
Back in April 2017, LuLaRoe introduced a favorable policy allowing consultants who were going out of business (GOOB, in LuLa lingo) to return unsold inventory for a full refund, including shipping costs. This was a huge relief for many sellers burdened with excess merchandise. The intention behind this policy was to prevent consultants from holding GOOB sales, which could potentially flood the market with discounted items and affect the retail prices for those still actively selling.
However, as of the recent announcement, LuLaRoe has reverted to a more stringent policy, now offering only a 90% refund on returned items. Furthermore, consultants are now responsible for their return shipping, which could lead to significant financial losses for numerous sellers. This abrupt change has prompted some consultants to create a petition urging the company to honor the previous full refund offer for those who began the GOOB process before the new policy was introduced.
In a statement to industry publication, LuLaRoe clarified that this was not a new policy but rather a return to their original terms, asserting that the April changes were merely a temporary measure. The updated guidelines specify that returns will only be accepted for merchandise bought directly from LuLaRoe, excluding many items traded or sold between consultants, a common practice in the community. Additionally, returns will only be honored for items purchased within the last year.
Consultants must also ensure that any returned items are unworn, unwashed, and still in their original packaging with tags intact. Given that many sellers display their inventory during sales, this requirement could be especially challenging, as it may prevent them from returning items that have been taken out of packaging for demonstration purposes.
Perhaps most concerning is the new restriction on seasonal and discontinued items. Consultants who find themselves with unsold holiday-themed inventory or discontinued pieces may now struggle to recoup losses on items they couldn’t sell during peak seasons. With LuLaRoe’s policy dictating that consultants cannot order specific patterns—leaving them at the mercy of chance—consultants may end up with unsellable merchandise.
Starting a LuLaRoe business often requires a significant financial commitment, with initial buy-in packages ranging from $4,812 to nearly $6,800. As consultants are encouraged to continually restock their inventory, many find themselves with large amounts of leftover stock when they decide to close their businesses. The revised return policy complicates this process further, making it even more difficult for them to clear out their remaining inventory.
In their communication, LuLaRoe professed to provide a fair exit strategy for independent fashion retailers, reiterating that the terms were part of the agreement signed by each consultant at the onset of their business journey.
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In summary, LuLaRoe’s recent policy changes have created a challenging landscape for consultants, particularly those looking to exit the business. The new restrictions on returns, especially concerning seasonal and traded items, coupled with the financial implications of reduced refunds and shipping costs, leave many sellers feeling frustrated and unsupported.