The End of Easy Returns: Why Retailers Are Charging for Unwanted Gifts

Imagine the scene: you’ve just unwrapped Aunt Suzy’s annual gift—an itchy, garish sweater that makes you wince. In years past, you’d quietly return it without a second thought. But this holiday season, that hideous sweater might be yours to keep, unless you’re willing to pay to send it back. Major retailers across America are implementing return fees that might make you think twice about rejecting those well-intentioned but unwanted gifts.

The landscape of retail returns is changing dramatically as companies like Macy’s, Zara, T.J. Maxx, and many others now charge customers for the privilege of returning unwanted items by mail. Even if your item is unopened and in perfect condition, you’ll face fees ranging from $3.99 to a whopping $11.99 just to send it back. Macy’s charges non-rewards members $9.99, while T.J. Maxx and Marshalls hit customers with an $11.99 return charge. Other retailers like JCPenney, J. Crew, Abercrombie & Fitch, H&M, and Urban Outfitters charge between $3.99 and $8. Even Amazon, the e-commerce giant, has tightened policies by implementing variable fees if customers don’t use their specific drop-off options. The one silver lining? In-store returns generally remain free—though they require more effort on your part.

These new policies apply even when using gift receipts, with retailers simply deducting the return fee from your store credit—a practice that leaves many consumers feeling shortchanged. According to smart-shopping expert Trae Bodge, this trend began emerging a couple of years ago as a response to changing consumer behavior during the pandemic. “We saw a big lift in online shopping throughout the pandemic, and retailers who initially said, ‘Oh, we’ll pay for the shipping back,’ all of a sudden, it started becoming egregious,” Bodge explained to The Post. The frustration has spilled onto social media platforms, where shoppers are venting about return fees that sometimes cost as much as the products themselves, particularly at stores like Marshalls and T.J. Maxx, known for their already discounted merchandise.

The retailers’ perspective reveals the financial pressure behind these policies. Processing a return can cost retailers nearly 40% of an item’s original price, according to a 2023 Optoro report. The National Retail Federation projects that by the end of 2025, approximately 19.3% of online sales will be returned, with the retail industry expected to absorb about $849.9 billion in total return costs. Best Buy exemplifies this trend with its $45 restocking fee on activatable devices like smartphones and tablets. As Bodge notes, “Once a box is open, the perceived value goes down, and stores have to figure out how to package it up and get it back on the shelf.” Additional factors like the 30% tariff on products from China further squeeze retailers’ margins, making return fees a way for them to “balance their books a little more easily” without passing the full burden onto customers through higher initial prices.

Beyond the financial implications, there’s an environmental consideration as well. The cycle of returns creates significant waste, with many returned items ending up in landfills rather than back on store shelves. “I’m always looking out for the consumer and how we can save money because sometimes retailers aren’t doing the right thing, but in this case, it’s tricky—it’s a business. People are returning tons of things. Sometimes those things go in landfills, it’s so wasteful and bad for the environment,” Bodge points out. This perspective offers a more nuanced view of return fees as potentially discouraging excessive returns and their associated environmental impact, rather than simply being a cash grab by retailers.

For consumers determined to return unwanted gifts despite these new hurdles, Bodge offers practical advice. To avoid fees, plan an in-store return during the first week of January, strategically avoiding both post-Christmas crowds and clearance sales that might reduce your refund value. When returning items, present them in as sellable a condition as possible to increase the likelihood of the retailer putting them back on the shelf rather than discarding them. Alternatively, consider creative solutions for unwanted gifts: platforms like Facebook Marketplace, eBay, and specialized resale sites like mpb.com (for camera and videography equipment) offer opportunities to recoup value without involving the original retailer. As return policies continue to evolve, consumers may need to become more deliberate about their purchasing decisions—and perhaps a bit more gracious about those imperfect gifts from well-meaning relatives.