Returnageddon? Retailers Are Cracking Down on Guilt-Free Returns

Are the days of ordering multiple clothing items in different sizes, trying them on at home and sending them back coming to an end?

Retailers are feeling the sting of changing consumer shopping habits, a tightening of purse strings and fast-fashion overload — and are starting to fight back.

The good ol’ days of guilt-free returns are disappearing fast as retailers overhaul their return policies.

The New Normal: Fees, Short Windows and Store Credit

To cut losses and discourage returns, certain retail giants are cracking down on returns. Here are a few stores that have enacted new return policies:

• Zara now charges a $4.95 return fee if you send items back by mail. Free returns? Only if you make your way into a physical store.
• H&M has a 30-day free in-store return policy. The mall retail chain charges a flat fee of $3.99 for all mail-in returns of online purchases.
• Amazon has begun applying a restocking fee on certain items, and accounts can now be labeled as “return abusers.”
• DSW charges $8.50 for online returns. The fee may be waived for top-tier loyalty members.
• Target has begun targeting fraud and individuals who abuse returns. Their updated policy asserts Target’s “right to deny returns, refunds, and exchanges” in order to prevent scams.
• Abercrombie & Fitch cut its return window to 30 days, and any return outside that window is only eligible for store credit.

Why Is This Happening?

Online return rates are significantly higher than in-store returns, and retailers are starting to feel the impact on their bottom line.

According to Richpanel, the “average ecommerce return rate rests at around 20-30%.”

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The golden age of retail therapy is disappearing. Now, your next online shopping spree might come with fees attached.

Before you shop online, check out the store’s return policy, watch out for returns on sale items and consider shopping in-store if you’re unsure about sizing.