Returning online purchases is becoming more expensive and less flexible as retailers tighten their policies to control the cost of reverse logistics.
Sixty-eight percent of retailers now charge a return fee at least some of the time, up from 43% five years ago, according to Loop Returns, which tracks transactions for more than 5,000 merchants. Processing a return costs retailers an average of 27% of the purchase price, according to returns-management company Optoro.
Major retailers are adding fees or shortening return windows. Zara, H&M, Uniqlo and T.J. Maxx charge between $4.95 and $11.99 for some mail-in returns. Macy’s has cut its return window from a year to 30 days, while Talbots has reduced its window from 60 days to 30 days. Home Depot, too, has imposed shorter windows on some products.
The changes reflect the costs retailers face when products move back through the supply chain. Returned goods require shipping, inspection, repackaging and restocking, while payment-processing fees are often not recovered. Some returned products are instead sold to liquidators or resold at a discount, adding pressure to retailers’ margins.
