Big retailers across America are charging shoppers to return their unwanted holiday gifts and purchases.
Nearly three out of four retailers will make customers pay a restocking or return fee that can be as high as $45 if they ship their product back, according to data reviewed by The Epoch Times and the National Retail Federation.
“Return policies and their overall process have transformed into a strategic touchpoint for retailers, influencing how younger consumers shop from the outset,” David Sobie, co-founder and CEO of Happy Returns, said in the National Retail Federation’s 2025 Retail Returns Landscape report.
The company will separately add a restocking fee of 15 percent of an item’s purchase price for devices such as drones, electric wheelchairs, and premium saunas.
Best Buy does not have a restocking fee in states such as Alabama, Colorado, Hawaii, Iowa, Mississippi, Ohio, Oklahoma, or South Carolina due to local laws.
“To stay competitive amid rising return rates and behaviors like bracketing, retailers must modernize their reverse logistics to enhance customer satisfaction, reduce fraud and safeguard their operations in today’s high-pressure retail landscape,” Sobie added.
Stores like T.J. Maxx and Marshalls charge a fee of $11.99 if items are returned by mail.
In-store returns are free at many shops including Macy’s, T.J. Maxx, and Marshalls.
Retailers that are on the lower end of restocking fees for mail-in items include American Eagle Outfitters ($5), H&M ($3.99), and JCPenney ($8).
Stores like Lululemon and Target opted out of charging restocking fees during the holidays.
“Free returns, no matter how you do it,” Target promoted on its website.
Walmart generally doesn’t charge a restocking fee, however it stated that “some third-party marketplace sellers may charge a restocking fee up to 20%,” including major appliances and furniture, per the company’s return policy.
Companies surveyed by the National Retail Federation estimated that 15.8 percent of total annual sales would be returned in 2025, with 19.3 percent of those sales coming from online.
According to the National Retail Federation’s report, Gen Z made up the majority of the returns, with 7.7 percent returns of online purchases coming from people between the ages of 18 and 30.