US company faces backlash for charging ‘earth usage fee’ on online orders: 'If they really care, they should shut down'

The fee, announced on March 30, applies only to purchases made through Patagonia’s store on Tmall in China.

American outdoor apparel brand Patagonia is facing backlash online after introducing an “earth usage fee” on online orders in China.

Patagonia said the funds collected will be donated to 1% for the Planet. (Unsplash/Representational image)

According to a report by South China Morning Post, the fee, announced on March 30, applies only to purchases made through Patagonia’s store on Tmall, a premium online marketplace operated by Alibaba. The initiative comes amid concerns about high return rates and the carbon footprint of shipping.

According to the company, during last year’s Double 11 shopping festival, its Tmall store shipped 16,179 packages, of which 11,277 were returned. Patagonia said this resulted in nearly 200 tonnes of carbon emissions from deliveries and an additional 40 tonnes from returns.

As part of its Earth Month campaign in April, the brand introduced the “earth usage fee,” charging 15 yuan (around $2) for the first item and 5 yuan for each additional product in an order. Customers who keep their purchases will receive a refund of the fee. However, if items are returned for reasons unrelated to quality, the fee will not be refunded, and customers will also have to bear return shipping costs.

Patagonia said the funds collected will be donated to 1% for the Planet, a global environmental initiative it has been associated with since 1985. “Each carton used to be a tree. Each shipment emits carbon,” the company said, adding that the fee is “not a punishment, but an invitation to collectively mitigate the environmental impact of online shopping.”

Despite its intention, the move has sparked criticism on Chinese social media platforms. Many users argued that brands should focus on improving product representation instead of passing responsibility to customers.

“Rather than shifting responsibility to consumers, the brand should reflect on why the return rate is so high. People would return fewer items if model photos accurately represented the clothing,” one user wrote. “If they really care about the Earth, they should shut down their business for good,” commented another.

High return rates are common in China’s online fashion industry, particularly in women’s apparel, where they can reach 50–60 per cent, according to reports. Social media users also noted that some shoppers take advantage of the country’s seven-day return policy, sometimes using items briefly before returning them.

Patagonia's response

In response to the backlash, Patagonia’s Tmall customer service said the fee marks a shift away from free shipping and reflects the real environmental cost of deliveries. “Although many brands provide free shipping, we choose to be transparent with ourselves and our customers; each shipment has actual carbon emissions,” a staff member said.