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Some? Shoppers looking for deals are stopping by during the holidays on purchase as retailers Start reducing your more generous return policies.
many Retailers make it easier to shop online during the COVID-19 pandemic by offering free shipping And comes back. But in the years since, these amenities have begun to erode, putting the holidays at risk Shopkeepers Trying to score a Black Friday or Cyber Monday lightning deal – even on an item they’re reluctant to buy.
Return fees, restocking fees, and no free shipping on returns can dampen the holiday spirit for some people. As of October 1, 82 percent of shoppers say free returns are important when they’re deciding to make an online purchase. report by the National Retail Federation and Happy Returns, a UPS-owned logistics company.
It is estimated that 17 percent of holiday sales will be returned in 2025, with 82 percent of shoppers returning unwanted gifts within a month of receipt. According to the National Retail Federation, US retailers will lose approximately $850 billion on total returns in 2025.
John Rosen, professor of economics at the University of New Haven, said Independent Given the tremendous value of returns retailers receive, it makes sense that some businesses are trying to recoup those costs.
“This is a big problem for retailers to deal with,” Rosen said. “So to deal with that rising cost, yes, many people are trying to restrict returns.”
“It takes quite obvious forms, like charging a return fee, like $1 or $2, just to make a return,” Rosen said, adding that retailers are now more likely to give customers store credit than cash back to maintain revenue returns.
Currently, 72 percent of U.S. retailers charge for at least one return option, up from 66 percent last year, according to the report.
In recent years, many popular retailers have returned to this practice. Customers who are not Rewards members Macy’s Pay $9.99 to send back clothes while store Like Zara And H&M There will be a fee of less than $6 to return an item. Even the retail giants Amazon Sometimes a fee is charged for sending back unwanted items.
Although waiving these fees boosted sales during the COVID-19 pandemic, when people were unlikely to visit brick-and-mortar stores, online shopping has stuck, creating a culture of returning.
Now, retailers are faced with the challenge of striking a balance between meeting customers’ expectations of easy returns and maintaining their profits.
“If you are a RETAILER And you offer unlimited returns, I don’t know how you walk away from unlimited returns, because it’s a competitive weapon for everybody,” Rosen said.
However, according to the National Retail Federation, some retailers are restricting their return policies to compensate for the higher costs elsewhere.
Retailers responding to the group’s survey said the main reasons for charging for returns are more expensive shipping costs, economic uncertainty and the risk of tariffs.
Some of the merchants surveyed also expressed concern about the increase in retail fraud.
When buyers were returning merchandise to most brick-and-mortar stores, the retailer would inspect the product and accept it if it was in good condition. However, online returns have made the process more complicated due to products getting stuck in transit, being sent out of their original packaging or being sent back damaged.
Some fraudulent returns involve items that consumers wore before they were sent back – known as “wardrobe.” While other customers falsely claim they never received an item.
Retailers dealing with large volumes of returns – especially during the holiday season – can also drain resources because they require reverse logistics, which includes shipping, inspection, restocking and repackaging of returned items.
According to Rosen, although third-party logistics companies have alleviated some of the hassles for businesses, many returned products have to be resold at marked up rates.
“People have a problem. They don’t want to deal with it, so other people, entrepreneurs, take over the entire industry to minimize the hassle,” Rosen said of third-party logistics companies like Happy Returns.
Solving that problem is one reason the retail giant Amazon Whole Foods was acquired several years ago, Rosen said.
“This gives them multiple locations where they can ask you to physically go to return your items,” Rosen said.
Online retail spending in the US is expected to reach $1.47 trillion by 2025, according to CapitalOne Shopping ResearchJoe notes that Americans are most likely to shop during the holiday months.
While many stores have cut back on free returns, many have extended the return period until the end of January for the holiday season.
Amazon, Kohl’s and Walmart will accept returns for purchases made from November 1 through December 31, 2026. Meanwhile, other retailers like Best Buy and Macy’s offer returns for holiday gifts through the end of December.
The change in refund policies comes as two in five Americans plan to spend less this holiday season amid economic uncertainty.
According to one, roughly two in five American consumers (42 percent) say they intend to spend less this holiday season than in 2024. 2025 Economic Impact Survey By insurance company Nationwide.
also with reduce inflationhigh cost of essential things like groceryUtilities, and rent leaving many people to prioritize bills over things like gifts.
According to , the tariffs could cost consumers $28.6 billion, or about $132 per shopper, this holiday season. LendingTreeAn online comparison marketplace.
Electronics will be impacted the most, at $186 per shopper, followed by clothing/accessories ($82), while food and candy will be impacted the least ($12).
Among those who intend to cut back, nearly half (49 percent) expect to buy fewer gifts; 38 percent would choose less expensive gifts; And according to Nationwide, 20 percent say they won’t buy any gifts.