‘Shut down the business’: US company faces backlash over ‘earth usage fee’ on online orders

US-based outdoor apparel company Patagonia has come under fire after rolling out a new “earth usage fee” for online shoppers in China.

The fee applies only to purchases made via the brand’s store on Tmall, a premium e-commerce platform operated by Alibaba.

According to a report by the South China Morning Post, the initiative was introduced on March 30 as part of Patagonia’s Earth Month campaign in April, aimed at addressing the environmental impact of e-commerce deliveries and returns.

The company said it shipped 16,179 packages from its Tmall store, out of which 11,277 were returned. This, it claimed, led to nearly 200 tonnes of carbon emissions from deliveries and an additional 40 tonnes from returns.

To tackle this, Patagonia introduced a fee of 15 yuan (around $2) for the first item in an order, and 5 yuan for each additional item.

Customers who keep their purchases will receive a refund of the fee. However, if products are returned for reasons unrelated to quality, the fee will not be refunded, and return shipping costs will also be borne by the customer.

‘Not a punishment’: Patagonia defends the decision

The company has positioned the fee as a sustainability-driven step rather than a penalty.

“Each carton used to be a tree. Each shipment emits carbon,” Patagonia said, adding that the charge is “not a punishment, but an invitation to collectively mitigate the environmental impact of online shopping.”

The funds collected will be donated to “1% for the Planet,” a global environmental initiative the company has supported since 1985.

Internet reacts: ‘Fix your product, not charge customers’

Despite its stated intent, the move has triggered strong reactions on Chinese social media.

Many users criticised the brand for what they see as shifting responsibility onto consumers instead of addressing internal issues.

“Rather than shifting responsibility to consumers, the brand should reflect on why the return rate is so high,” one user wrote, pointing to inaccurate product images and sizing as key reasons behind returns.

Another comment took a harsher tone: “If they really care about the Earth, they should shut down their business for good.”

The backlash highlights a broader sentiment — that sustainability initiatives should begin with companies improving operations, rather than adding costs for customers.

The bigger issue: High return rates in online fashion

High return rates are a known challenge in China’s online retail space, particularly in fashion.

Reports suggest return rates in women’s apparel can reach 50–60%, driven by factors such as:

“Although many brands provide free shipping, we choose to be transparent with ourselves and our customers; each shipment has actual carbon emissions,” a representative said.

The company also indicated that the fee reflects a shift away from the idea of “free shipping,” which often hides the true environmental cost of deliveries.