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Major Retailers Are Charging Shoppers Return Fees For Purchased Items

Companies' claim that these new charges are part of a trend among major brands to recoup the costs of return handling and restocking.


Many major U.S. retailers are opting to charge fees for returned items this holiday season. Most in-person returns are still free, but as online shopping becomes increasingly popular, mailed returns come at a cost. The new shift in retail return policies could influence how customers shop and send back purchases.

JCPenney now charges $8 per returned package, and J.Crew charges $7.50, among other stores and online retailers that have introduced similar fees to offset the costs of processing returns. Retailers, including Zara, charge $4.95 per return request.

Many companies claim that these new charges are part of a trend among major brands to recoup the costs of return handling and restocking. According to the National Retail Federation, “total returns for the retail industry are projected to reach $849.9 billion in 2025.” Charging a return fee for even a small fraction of the cost will yield a pretty penny for corporations.

Fees for mailed returns are now common, with many retailers deducting the charge from the total refund when an item is sent back by mail rather than returned in-store. While common, it is certainly inconvenient for those receiving gifts. The fees also present problems for customers who purchased low-priced items. 

The new return fees reflect the desire of retailers to maximize profit, even at the literal cost of the consumer. Lowering the costs associated with reverse logistics — the handling, inspection, and restocking of returned merchandise — in the age of online shopping is a prudent place to profit.

For shoppers, that means evaluating return policies before completing a purchase. Additionally, customers should consider alternatives such as in-store returns, which often avoid fees. Those hoping to save on return items will also be more selective before adding to the cart. A little more time will need to be spent evaluating items more likely to fit and meet expectations on first delivery. 

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