Retailers Implement Return Fees Amid Rising Holiday Returns

In a shift from traditional practices, major retailers such as Macy’s, Zara, T.J. Maxx, and Marshalls are now imposing fees on holiday gift returns, a move that has sparked frustration among consumers. For instance, Macy’s charges a $9.99 fee for returns unless customers are members of its Stars Rewards program, while T.J. Maxx and Marshalls impose an $11.99 fee. Other retailers like JCPenney, J. Crew, Abercrombie & Fitch, H&M, and American Eagle Outfitters have adopted lower fees ranging from $3.99 to $8. Online giant Amazon has also introduced variable fees for returns that do not utilize their in-person drop-off option.

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The National Retail Federation (NRF) estimates that by the end of 2025, approximately 19.3% of online sales will be returned, leading to an anticipated total of $849.9 billion in returns across the retail industry. This trend has prompted retailers to reconsider their return policies, particularly as the costs associated with processing returns can reach nearly 40% of an item's original price. Retail experts suggest that the increase in return fees is a response to the surge in online shopping during the pandemic, where retailers initially absorbed return costs but later faced financial strain.

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Retailers argue that the imposition of return fees is a necessary measure to mitigate losses associated with returns. Trae Bodge, a smart-shopping expert, noted that the environmental impact of returns, including waste from unsold items, is a growing concern. Retailers like Best Buy have taken this further by implementing a $45 restocking fee on activatable devices, citing the decline in perceived value once packaging is opened. Bodge explained that these fees help retailers manage costs without fully passing the burden onto consumers, especially given tariffs on imported goods.

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The introduction of return fees has led to significant backlash from consumers, many of whom have expressed their dissatisfaction on social media. Critics argue that these fees can be as high as the cost of the items themselves, making returns economically unfeasible. To navigate these new policies, Bodge advises consumers to return items in-store whenever possible, ideally within the first week of January to avoid crowds and maximize return value. She also suggests alternative methods for dealing with unwanted gifts, such as selling items on platforms like Facebook Marketplace or eBay.

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As retailers adapt to changing consumer behaviors and economic pressures, the trend of charging return fees is likely to continue. While these policies aim to protect retailers from financial losses, they also challenge consumers to rethink their return strategies during the holiday season. The balance between business sustainability and customer satisfaction remains a critical issue as the retail landscape evolves.

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“Sometimes those things go in landfills, it’s so wasteful and bad for the environment,” Bodge added.” — Trae Bodge, Smart-Shopping Expert

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“So, if anything, stores are finally wising up.” — Trae Bodge, Smart-Shopping Expert

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