Think twice before returning gifts as retailers roll out return charges

Returning unwanted holiday gifts may no longer be as painless—or free—as shoppers have grown used to.

According to a report by the New York Post, several major retailers have begun charging fees for mailed returns this holiday season, even for unopened items in perfect condition. While in-store returns generally remain free, customers opting to send items back by mail are now being hit with new charges.

Macy’s, for instance, is imposing a $9.99 fee for customers who are not members of its Stars Rewards program. Discount retailers T.J. Maxx and Marshalls have introduced even higher mail-in return fees of $11.99. Other brands, including JCPenney, J. Crew, Abercrombie & Fitch, H&M, Zara, American Eagle, UNIQLO, and Urban Outfitters, have adopted lower fees ranging from about $3.99 to $8.

Online retail giant Amazon has also tightened its return policies, charging fees for certain returns unless customers use its box-free, label-free drop-off options at designated locations, the Post reported.

Retail analysts say the shift reflects mounting costs for retailers. Processing a return can consume as much as 40 percent of an item’s original value, according to industry estimates cited in the report. The National Retail Federation projects that nearly one in five online purchases will be returned by year-end, costing the retail sector hundreds of billions of dollars.

Consumer experts interviewed by the Post noted that retailers initially absorbed return shipping costs during the pandemic-driven surge in online shopping, but rising abuse of generous return policies has pushed companies to reverse course.

Shoppers looking to avoid fees are advised to return gifts in-store whenever possible and keep items in resalable condition. Others are turning to resale platforms such as Facebook Marketplace and eBay as alternatives to paying return charges.

As retailers move to rein in losses, the era of no-questions-asked, free holiday returns may be coming to an end.