From Saks Fifth Avenue to Kith: Retailers Are Now Charging You to Make Returns
As the holiday season winds down, returns are top of mind for consumers as they seek to exchange or get rid of unwanted gifts.
Consumers are expected to return more than $816 billion worth of retail merchandise purchased in 2022, up from $761 billion last year, according to a report released earlier this month by the National Retail Federation (NRF) and Appriss Retail.
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As retail sales continue to grow, the average rate of return has remained flat at 16.5 percent compared with 16.6 percent in 2021, NRF said. And for every $1 billion in sales, the average retailer incurs $165 million in merchandise returns.
In terms of holiday sales, the NRF said that retailers can expect to see an average of 17.9% of merchandise returned, equating to nearly $171 billion.
In the same report, the NRF said that for every $100 in returned merchandise accepted, retailers lose $10.40 to return fraud. Of the types of return fraud retailers say they have experienced in the past year, half cited returns of used, non-defective merchandise, also known as wardrobing, and 41.4% cited the return of shoplifted or stolen merchandise. One-fifth (20 percent) attributed return fraud to organized retail crime, NRF reported.
To combat this rising cost, many retailers are quietly retiring their free online return policy. Now, retailers are opting to deduct fees from customer refunds if they choose to ship their returns back to the warehouse, while others are not covering shipping costs at all.
Here, see a roundup of all the retailers charging for returns.
Abercrombie & Fitch
The Ohio-based retailer deducts a $7 fee for online returns sent by mail. Customers can return unwanted items they ordered online at a store for free.
American Eagle Outfitters
If an order does not qualify for free returns, customers can still get a label to mail items back. A $5 fee will be deducted from the refund to cover shipping costs.
Belk
This Charlotte, NC-based department store chain does not cover customers’ return shipping costs. The retailer notes on its site that it will reimburse return shipping costs via a Belk gift card only if items were damaged in the initial shipment; the incorrect item was shipped; or if a defective item was shipped.
Boohoo
For US consumers, the UK retailer is charging $6 to return online purchases in a 28-day window.
Dillard’s
The department store will deduct a $9.95 fee from a refund to make returns of online purchases by mail.
DSW – Designer Shoe Warehouse
Since 2018, DSW Gold or Elite members receive free return shipping. For all other customers, the cost of return shipping is $8.50 for any number of items and will be deducted from the refund. Customers can return unwanted items they ordered online at a store for free.
Foot Locker
The sneaker retailer deducts a $6.99 fee from refunds on all returns made by mail. The deduction will be waived if customers are seeking an exchange by mail.
JCPenney
The department store will deduct an $8 fee from all refunds on returned online purchases made by mail.
J. Crew
Customers wishing to return online orders by mail while using J. Crew’s prepaid label, will see a $7.50 deduction from their total refund. Returns can be made for free in-store.
Journeys
For all returns by mail, $7.95 will be deducted from the refund amount for using the retailer’s provided return label.
Kith
Refunds on online returns are provided in the form of Kith.com gift cards, which exclude original shipping costs and include an $8 restocking fee.
Kohl’s
Kohl’s states on its website that it no longer pays for return shipping costs. Costs of shipping back returns are on the customer.
Lands’ End
Similar to J. Crew, Lands’ End deducts $6.95 from the refund credit to ship online returns back to the warehouse. On its website, however, the Wisconsin-based brand, does state that U.S. and Canada customers “may qualify” for free returns of non-personalized Lands’ End branded merchandise within 90 days of purchase. It was unclear what the qualifications were to receive the free return.
L.L. Bean
On its website, the outdoor brand states that returns and exchanges through U.S. mail are $6.50 per package. Customers can return or exchange for free if they used an L.L. Bean Mastercard or paid entirely using Bean Bucks rewards.
Neiman Marcus
Eligible merchandise may be returned free if received within 15 days of the delivery date. However, a return fee of $9.95 will apply for all clearance items, all items returned after 15 days of delivery, and items marked as “Return Fees Apply.”
Next
The UK-based company will deduct $7 from customers’ refunds to return online purchases.
Pacsun
According to the retailer’s website, customers will not pay shipping fees up front, but a deduction of $7 will be taken out of the refund.
REI Co-op
The outdoor retailer deducts $5.99 from refunds to cover return shipping for standard size/weight packages.
Saks Fifth Avenue
Returns must be initiated within 14 days of the ship date to receive a free return. If returns are initiated after this timeframe, Saks will deduct a $9.95 return charge from the refund.
Shoe Carnival
The retailer will deduct a $6 fee from all refunds on online returns sent by mail.
Uniqlo
The Japanese fast fashion retailer does not cover shipping costs to return online purchases, which are not accepted in stores. Any alteration fees incurred on the returned items are also not refunded. The return cost will be covered, however, if customers received a defective, damaged or incorrect item.
Urban Outfitters
Urban Outfitters deducts a $5 restocking fee from all online orders returned by mail. Customers can return items for free in-store.
Zara
Zara caused a stir online in May when it announced it would charge customers in the UK £1.95, or about $2.45, to return online purchases to third-party drop-off points. In the US, however, the Spanish fast fashion retailer is charging consumers $3.95 for the same service.
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