The Growing Trend of Return Fees

inside of delivery truck showing lots of stacked boxes

Were you a little nervous the first time you purchased clothing online? Did the fact that you could return it if the color was off or it just didn’t work out help you make the purchase? We’ve all become used to buying something online, knowing that returns are free and easy. Unfortunately, this seems to be changing. In fact, the number of retailers charging return fees has grown from 31% to 40% this year alone.

Why are companies charging fees?

Financial considerations play a significant role in these newfound fees, as return shipping and restocking can be costly for businesses. Some consumers bracket their purchases, buying in several colors and sizes, then return what doesn’t fit or what they don’t like. Others may be abusing the system, where they purchase something to wear that they know they will return at a later date.

However, one reason may rise above all – companies are starting to realize they can charge fees without much blowback from consumers. Purchasing online is now sticky: more and more people don’t want to go to a store and would much rather just sit at home and order. Online retailers know they’ve got you where they want you, and that a $3 fee likely won’t keep you from changing your habits.

What can you do to avoid fees?

With the increase in return fees, just knowing that you may be charged to send back your items can help you better manage your purchase decisions. Make sure to read a store’s return policy. Even if you’ve shopped there dozens of times, you can no longer rely on what their policy was a month ago. Here are some other ways to avoid fees:

Return the item to the store. If you purchase an item online from a store that has a location in town, return it to that store. Electronics stores may still charge a restocking fee, but most clothing and other retail stores will accept an item without any excess charge.

Drive to a drop-off point. Many stores that don’t have a brick-and-mortar location offer drop-off points for their returns that either cost less or nothing. You might be able to return your item to a UPS store or a local drug store.

Consider joining rewards programs. Some companies offer a tiered return policy. If you’re a one-time shopper or someone without an account, you can return the item but you will pay more. For those customers who have an account with the store or are in their loyalty program, a number of (or all) returns may be at no charge.

Think through your purchase decisions. Spend a little more time evaluating the product you want. Look at competing items at other stores – you might find one that offers free returns for the same quality and price. Know that the photos are there to entice you – chances are the product won’t be quite that nice. And use any sizing guidelines, including in the comments section, to know if the item works on a petite body or tends to run large.

Consider alternatives to returning the item. Do you have a friend who might like the item for their next birthday? Can you sell it at a neighborhood yard sale? While this involves more work, you may end up with more cash in your pocket than by simply hitting return.

Shop in person. While this may seem an idea straight from the 1990s, picking out items in person could significantly reduce your need to return it. Especially with clothes, you can see the actual color, feel the material, and even try them on.

Finding out that you’re going to have to pay to return an item is no fun. Try to take a few minutes before checking out to scope out the return policy. And if it’s a store you shop at frequently, see if they have an online loyalty program that will help you limit fees, or look for an alternative. Boycotting those that charge return fees might be the best way to persuade them to reconsider.

Photo by Claudio Schwarz

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