More retail stores charging return fees according to 2023 report

COLUMBIA, Mo. (KMIZ)

Anyone planning to return an unwanted gift after the holidays may want to check stores' return policies first as more stores have started charging return fees.

A 2023 merchant and consumer study by Happy Returns, a UPS company, reports 81% of retailers started charging return fees for at least one return method in 2023.

However, shoppers are still returning items at a high rate. The same study reports 87% of retailers have seen higher return rates this year. It states in-person returns are still shoppers' preferred return method.

BBB Spokesperson Khesha Duncan said this is the most likely return method to get a full refund.

"I think your best bet with probably not having those fees is going in person," Duncan said. "You've got the item in hand, you're right there with it, there's nothing to mail or ship."

The Happy Returns study reports while fees have increased, there are still free return options. Introducing fees has allowed stores to lead shoppers toward choosing the free return options and caused an increase in exchanges.

The report states retailers began charging for returns after having to decide between fulfilling orders and processing returns. Retailers also cite shoppers being more tolerant to paying fees.

Duncan said it can save shoppers a lot of headaches and frustration by checking return policies before going to the store to return an item or shipping it off in the mail.

"Place a quick call if you're going to head out to a brick and mortar location, or online is even easier, you can usually talk with a staff person in the chat and ask questions about the return policy ahead of time so that you're not caught off guard by time limits or an unexpected fee you weren't anticipating," Duncan said.

Duncan said some stores charge restocking fees, mostly for larger electronic items, up to 25% of the original price. She said it's important for shoppers to get clarity about why they are being charged these return or restocking fees, and if there is any way to get that money back in other ways, such as in-store credit.

Consumer coupon site RetailMeNot reports stores charging fees for mail-in returns in 2023 include:

• JCPenney
• Abercrombie & Fitch
• DSW
• T.J.Maxx
• American Eagle
• Macy's

The Happy Returns study reports that the stores charging return fees saw a 48% increase in customer complaints in 2023 while 33% of companies reported losing customers.

To make a return go smoothly, Duncan said to make the return at a less busy shopping time, to have your ID and gift receipt along with the item in its original packaging.

"I think having as much documentation as possible with you is going to make the smoothest process for you," Duncan said.

She said it never hurts to tell the clerk if someone is a loyalty member during a return, and people should also check to make sure an item they're returning was not bought on clearance or as a final sale.