The holidays bring festive cheer with gift giving, but returning unwanted gifts is becoming more difficult and occasionally more expensive. Nearly 40% of stores now charge return fees, a rise from 31% in 2022, the demise of free returns as a popular bonus. This change is due to the necessity of retailers to strike a balance between increasing costs and profitability, redefining the way we manage post purchase logistics. Neil Saunders of Global Data states it bluntly: the days of mass free returns are gone, and they are being replaced by a patchwork of practices that requires greater shopper attention. With return processing reaching as much as 39% of an item’s price (according to Optoro) and $816 billion in lost sales due to returns in 2022, retailers are cracking down on policies to remain sustainable. Let’s see how 14 large retailers are modifying their return policies and offer smart tips to shop smarter this holiday season.
Retailers Charging Return Fees
1. Abercrombie & Fitch
Abercrombie & Fitch also charges a $7 fee on mail in returns now. This is how much it costs to handle and stock up on online purchases. Be warned by their policy before you shop particularly during holiday shopping when returns are high. Anticipating can save you from a surprise expense.
2. American Eagle Outfitters
American Eagle Outfitters incurs a $5 cost for mail in returns that are not eligible for free returns, such as in store returns. With returns increasing to 17% last year from 8% in 2019, retailers such as American Eagle are weighing convenience of customers against logistics expense. Choosing in store returns can keep your wallet smiling.
3. Dillard’s
Dillard’s charges a $9.95 mail in return fee, an obvious attempt to recoup the expense of handling large numbers of web orders. The uncomplicated fee allows customers to plan ahead, but it’s a warning to think carefully before buying or to shop in store and return for free.
4. DSW
DSW assesses a $8.50 charge to non Gold or non Elite members for mail in returns, but loyalty members do not have to pay. This is an incentive to become a loyalty member, which rewards members with more than free returns. For non members, the in store return is a cost effective option since online return fees increase.
5. H&M
H&M charges $5.99 for mail ins but exempts loyalty members from the charge. Fast fashion retailers like H&M have high return rates on online purchases, so this practice is cost recovery while paying loyal customers back. Sign up for their program or return in store and you can skip the fee.
6. J.C. Penney
J.C. Penney is charging an $8 mail in return fee, encouraging customers to opt for free in store returns instead. This aligns with the interests of retailers to reduce shipping expenses and get customers to visit the store, which could result in higher purchases. Double checking the policy in advance guarantees an easy return.
7. J.Crew
J.Crew charges $7.50 for mail in returns, which covers the cost of processing online orders. Store returns are free, providing an inexpensive alternative. This practice promotes responsible purchasing and review of return details to prevent charges.
8. Kohl’s
Kohl’s charges a 15% restocking fee on bulk freight delivered items, but most in store returns are free. This emphasizes the expense of dealing with bulky items and incentivizes store visits, which both save shoppers shipping costs and retailers shipping expenses.
9. REI Co op
REI Co op has a $5.99 fee for returns by mail because it is expensive to process high tech outdoor equipment. Free in store return is another option, motivating members to shop wisely or drop by stores to minimize fees while remaining loyal.
10. T.J. Maxx / Marshalls
T.J. Maxx and Marshalls have a pricey $11.99 fee for mail in returns, among the highest, illustrating thin margins for discount stores. In person returns are free and therefore the preferred choice for price sensitive customers who do not want to pay high fees.
11. Urban Outfitters
Urban Outfitters charges a $5 restocking fee for mail returns, as it is focusing on high return rates of online consumers. It induces cautious buying or in store free returns. Knowing this policy prevents surprises through unexpected deductions.
12. Zara
Zara charges $3.95 for mail in returns but offers waivers for loyalty members. As a leading fast fashion brand, Zara tackles high volume online returns with this policy while still balancing profitability and customer benefit. In store returns or being a loyalty member could save you money.
13. Amazon
Amazon imposes a $1 charge for UPS store returns if Whole Foods, Amazon Fresh, or Kohl’s are nearer. This redirects customers to value priced drop off sites, another aspect of Amazon’s attempts at large scale return logistics. Scanning nearby alternatives can save that fee.
14. Macy’s
Macy’s requires non Star Rewards members to pay a mail in return fee of $9.99, exempted for loyalty members. This encourages one to join their free program, whose benefits are extra. In store returns are a fee free option for non members.
Avoiding Return Fees It doesn’t have to be intimidating to navigate these new policies. Here are helpful methods to keep your holiday shopping budget friendly:
- Check Policies Early : Before you buy, review each retailer’s return policy. Fees, deadlines, and conditions vary, and some return windows are shorter than before. Knowing the details upfront prevents costly surprises.
- Join Loyalty Programs : Many retailers, like H&M, DSW, and Macy’s, waive return fees for loyalty members. Signing up often brings extra perks like discounts or points, making it a smart move for frequent shoppers.
- Opt for In Store Returns : Store returns are generally free and hassle free. Retailers such as Kohl’s and J.C. Penney invite store visits to avoid shipping cost and drive sales. Drop off locations, such as Whole Foods for Amazon, provide convenience.
- Shopping Research : Prevent returns through proper research. Shopping expert Trae Bodge recommends shopping in stores to test fit, while Samantha Gordon at Consumer Reports recommends making sure you need sale items. This is cost cutting and environmentally friendly.
- Budget for Fees : Return fees, usually $5–$10, are not going away. Budget for these expenses when shopping to prevent budget shock. Treating returns as a reimbursable expense promotes wiser buying.
- Sell or Regift : If returns are not feasible, sell products on sites like Postmark or eBay, or regift thoughtfully. This recovers value, saves on fees, and prevents waste.
- Why Retailers Are Changing Policies : Retailers are confronted with increasing pressures: softening demand for discretionary products, growing operating expenses, and high returns costs up to $32 for a $100 product. With 17% of last year’s merchandise returned, versus 8% in 2019, these charges allow retailers to remain profitable as they sort through logistics. In store returns and loyalty programs are smart methods of offsetting customer satisfaction against economic well being.
- The Bigger Picture : The move away from free returns is symptomatic of a wider retail transformation. Convenience of online shopping has its logistical counterpart, and retailers are learning to survive. For consumers, the implication is proactivity checking for policies, subscribing to loyalty programs, and opting for in store returns can save money. Conscious buying also resonates with green objectives by minimizing waste related to returns.
Final Thoughts
The holiday season is still a season of happiness, but getting your money back now takes more effort. Knowing the return policies of stores such as Abercrombie & Fitch, Amazon, and Macy’s, and employing strategies such as loyalty programs and in store returns, you can shop comfortably without the surprise charges. The free return era might be over, but smart shopping sustains the holiday cheer.
