We're Witnessing the End of Free Return

With inflation currently at its highest level in almost forty years, many retailers are struggling with excess inventory. To increase sales, these retailers often offer free returns. 

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 begin to adjust their return policies successively, such as Zara and Nordstrom. 

A recent study by Cycleon found almost two-thirds (64 percent) of U.S. consumers are willing to pay extra when returning a parcel to subsidize greener carrier options. They believe that charging for returns can reduce waste to a large extent.

CouponBirds' data 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' data, among retailers who charge for return, 22% specialize in clothing, 18% operate department stores, 8% primarily sell shoes, and those specializing in food, crafts, office supplies, and other products each account for 4%. Meanwhile, retailers selling tools, vacation rentals, and beauty products each account for 2%. Clothing stores and department stores charge for returns the most, followed by shoe stores.

With fewer retailers offering free returns, the era of free returns appears to be ending. Shoppers are advised to exercise patience when making purchases, choose products carefully, and minimize returns to avoid incurring additional re-stocking fees, pick-up fees, or shipping costs.

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".