Some Brands Are Now Charging a “Return Fee” — Here’s How to Avoid It
It’s always hard to know exactly what to get the people in your life — whether it’s your significant other or your coworker at that White Elephant party. Sometimes you take a big swing and it’s a hit, and sometimes it’s a miss. But what you might not know (I certainly didn’t) is that sometimes when gifts have to be returned, retailers will charge you a fee. And right now, two major retailers — T.J. Maxx and Marshalls — are making waves by implementing their own return fees.
To my surprise, though, these fees aren’t new. And, in fact, according to Good Morning America, T.J. Maxx and Marshalls are just two of many retailers implementing a charge to return unwanted items (sometimes known as a “restocking fee” or “return fee”).
What Are “Return” or “Restocking Fees”?
A “return” or “restocking fee” is a fee that retailers will charge when you return an item. It’s primarily applied to online orders returned by mail, and costs can reach as high as $11.99 deducted from the refund of a single item.
According to the National Retail Federation, nearly three out of four retailers charge a return fee in some form — particularly amid the surge of online shopping over the holidays. That shocked me, as I’ve never noticed them before. But apparently there’s a reason for that — fees have risen over the years as companies look to offset the cost of processing products back to shelves.
Despite 82% of consumers saying free returns are “an important consideration when shopping online,” retailers are attempting to recoup losses tied to return fraud, which accounts for nearly one in 10 transactions. Once figured as a cost of customer service, the return fee passes the financial burden back to the consumer and might make you think twice before you buy a gift at retailers that charge them.
Major Retailers Instituting, or Raising, Their Restocking Fee
You’ll want to do your own research, but some retailers have restocking fees, or have increased their restocking fees. Here are a few.
- Marshalls: $11.99
- T.J. Maxx: $11.99
- Macy’s: $9.99
- JCPenney: $8
- Wayfair: Up to 10-20% of purchase price
When Do I Have to Return Gifts to Avoid Restocking Fees?
The good news is that some retailers have dates that you can return gifts at before you incur the fee, and they’re pretty generous. They are as follows:
- T.J. Maxx/Marshalls/HomeGoods: January 25
- Amazon: January 31
- Walmart: January 31
- Target: January 24
- Best Buy: January 15
- Macy’s: January 31
Shoppers can avoid fees by returning products in store when possible, saving receipts, and noting return deadlines to maximize refund value. Retailers like Macy’s waive their return fee for members of their loyalty program. Before making a purchase for you or a loved one, check each retailer’s website to consider return policies, which may vary by product type.