Most major retailers offer free returns and free shipping, but that could soon be a thing of the past. Retailers like Zara, H&M, J. Crew, Anthropologie, Abercrombie & Fitch, and other chains charge a minimum of $7 to return items online. Why the new fee? Experts say it is common for customers to order several different sizes of clothing to see what fits best. The unwanted items are then returned, which causes a strain on retailers.
Features such as free return shipping, contactless drop-off, and instant refunds were once a pro for both consumers and retailers. Now, those same features are costing retailers billions each year. The National Retail Federation reports customers sent back 17% of the total merchandise they purchased in 2022. This totaled to $816 billion for the year, which doesn’t include returns made after the Christmas holiday. Individually, a retailer loses an estimated $165 million in returns. Now, major companies are looking into ways to protect their bottom line.
January 2nd is considered National Returns Day. Millions of packages are expected to be returned during this time. If you plan on returning anything, there are a few new practices you may have to get used to. Charging for returns is just a start. Some retailers are also giving tighter deadlines for when you can return something. This means a 30 or 60-day return policy could be reduced to a week or two. Others are doing away with return policies altogether, while some retailers are trying “returnless refunds,” which means you are given your money back. Then you are allowed to keep or donate items you don’t want. Whatever the policy is, be prepared for return policy changes at some of your favorite stores.
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