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The scary thing waiting under the tree this Christmas: Hefty return fees and restrictions

A photograph showing a person holding a shopping back with an image of Santa Claus on the side of it.
More shoppers are turning to returns — and it's coming at a price.
(
Alberto Pezzali
/
Associated Press
)

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If you’re already planning to return a holiday gift that you’re just not that into, you could be in for a surprise.

More stores and shopping outlets are charging a restocking fee or a return surcharge of some kind. And many are also imposing deadlines or restrictions on returns, according to the National Retail Federation.

A quick search turned up these policies that might complicate your return plans:

  • Best Buy charges a restocking fee of $45, or 15% of the purchase price on certain items, such as prepaid cell phones, cameras, drones and projector screens and … saunas.
  • Macy’s offers free in-store and return shipping for its Star Rewards members, but non-members can face a $9.99 return shipping fee, plus tax, that will be deducted from your refund.
  • UNIQLO requires online purchases to be returned online, not in a brick-and-mortar location.

How we got here

The reason is simple. We love to return stuff. Retailers are expected to see nearly $850 billion — with a "b" — in returns this year. And nearly 20% of online sales will be returned, according to a report by the National Retail Federation. (Interesting fact: Gen Zers are more likely to return an online purchase, the report found.)

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Processing all those returns cuts into company profits. And then there’s the fraud, abuse and waste that goes along with it. (This includes everything from returning empty boxes, using and abusing items and then requesting returns, and something that I do quite a lot of — it’s called “bracketing,” where you buy two or more sizes of something to try them all on, planning on at least one return.)

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It all adds up, and businesses are not in the business of wasting money.

“We’re seeing return figures that are much more than the norm,” said David Sobie, the Santa Monica-based co-founder and CEO of Happy Returns, a third-party business that you’ve probably seen inside places like Ulta. For consumers, it provides returns without a need for printer labels or packing tape. For businesses, this service provides built-in fraud protection.

He said limitations on returns in the form of restocking fees and charges are likely to increase in response to what businesses see as “costly consumer behaviors."

What you can do about it

Sobie said consumers can avoid unpleasant surprises with a little pre-purchase sleuthing:

  • Ask about return policy details.
  • Consider whether you might be better off checking the item out in person before purchasing.
  • Find out about any “fine print” issues regarding return details, fees, or limitations. For example, if you purchase in person, can you return the item by mail?

And of course, hang on to receipts.

“I always say you want to check it out before you check out,” Sobie said.

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