Retailers are increasingly charging fees to consumers for refunds on shipped items to fight the growing number of returns.
According to the National Retail Federation (NRF), shoppers returned over $800 billion of gifts last year. Logistics company Narvar says 40% of retailers now include a fee for return shipping, up 31% from last year, reported CBS Texas.
The number soars to over 80% for major retailers, like Macy’s, H&M, and J.Crew, charging a fee for returns, reported NEWS4SA,
“It arrives in the warehouse. It’s got to be scanned and put back in and made available to sell. And there’s labor involved with all of that,” according to Anisa Kumar, chief customer officer for Narvar, per CBS Texas.
While the fee varies, the charge can be as much as $10 at the high end, per NEWS4SA.
The window to return items can also shrink during the holidays. For example, some stores cut the grace period for Christmas gift returns from 30 days to 14 days. You can also face a restocking fee, especially for used or opened products.
For in-person returns, it is best to have the receipt handy to help ensure the process goes smoothly. However, many stores will still accommodate the return without a receipt.
If you are unsure about a specific store’s policy, most stores include details on their website. Alternatively, you can try calling the customer service line and speaking with a representative.
According to NRF’s 2023 Consumer Returns in the Retail Industry:
- Total returns for the retail industry amounted to $743 billion in merchandise in 2023.
- The total returns rate as a percentage of sales for 2023 is 14.5%.
- The percentage of abuse and fraud impacting total returns in 2023 is 13.7%.
- Online returns are expected to be 17.6% of total online sales.
