We're Witnessing the End of Free Return

With inflation currently at its highest level in almost forty years, many retailers who struggle with excess inventory often offer free returns to increase sales. 

However, over the past seven years, e-commerce returns have increased to 95%. One estimate shows that the US returns alone create 5 billion pounds of landfill waste and 15 million tonnes of carbon emissions annually, equivalent to the environmental impact of trash produced by 5 million people in a year. That's why merchants such as Zara and Nordstrom begin to adjust their return policies.

A recent study by Cycleon suggests almost two-thirds (64 percent) of U.S. consumers are willing to pay extra when returning a parcel to subsidize greener carrier options because it can reduce waste to a large extent.

CouponBirds' research indicates that an increasing number of retailers are choosing to charge for returns in 2022, and return fees are likely to become more common. Among the top 50 US retailers, including Amazon, JCPenney, and Hobby Lobby, only 30% offer free returns, while 70% charge for restocking fees, pick-up fees, or shipping costs.

According to CouponBirds' research, among retailers who charge for returns, 22% come from clothing, 18% from department stores, and 8% from shoes. Those selling food, crafts, office supplies, and other products each account for 4%. Meanwhile, retailers in tools, vacation rentals, and beauty products make up 2% respectively. Overall, clothing stores and department stores charge for returns the most, followed by shoe stores.

As fewer retailers offer free returns, the era of free returns appears to end. Shoppers are advised to think twice before paying and minimize returns to avoid additional fees.

References

1. Debter, Lauren, "Good News For Shoppers: Retail Discounts Are Making A Comeback".

2. Ryan, Tom, and RetailWire, "Zara's Move Suggests Free Returns May Become Rare".