Cettire Ltd (ASX: CTT) shares are continuing their rebound on Tuesday.
In morning trade, the online luxury products retailer's shares are up 2% to $4.23.
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Why are Cettire shares rising?
The catalyst for this rise has been the release of an announcement this morning.
According to the release, Cettire continues to experience significant customer momentum across its global footprint.
It also highlights that it is always seeking to improve its offering, with a view to continuously enhancing the experience for its customers and suppliers.
So, with the company's returns policy and treatment of estimated duties recently receiving significant negative attention recently, it has decided to act.
What's happening?
Cettire revealed that it has conducted a review of its policies and is making updates to its customer proposition in the USA and Australia.
This has seen the checkout flow updated in the USA and Australia so that customers see all-inclusive pricing at the checkout. And to simplify the overall customer experience, estimated duties will no longer be itemised.
It has stressed that this does not mean that duties will not be paid. As it previously communicated, Cettire has responsibility for the settlement of duties with the relevant customs authority, with the goods unable to clear customs unless the process is managed appropriately.
As for its returns policy, which has been attacked in reviews and the media, Cettire's proposition has been simplified in the USA to remove any withholding for estimated duties. There is no change in the returns policy in Australia.
The updated returns policy for USA customers is a US$25 charge and a processing fee of US$50 per returned item applicable to orders greater than US$800.
Management also notes that estimated duties charges have previously applied to a small proportion of orders in the USA and Australia and the updated policies are not expected to have a material impact on revenue or earnings.
Commenting on the changes, Cettire's founder and CEO, Dean Mintz, said:
Cettire's overall value proposition to its customers is compelling and remains a key driver behind the Company's recent success and underlying customer growth. We continuously focus on improving our platform and are always looking for opportunities to enhance – and in some cases simplify – our offering. We believe today's updates not only represent this evolution but also result in a simplified and improved customer proposition.
Cettire shares are now down approximately 15% since this time last month, but remain up 220% on a 12-month basis.
