London Daily

Focus on the big picture.
Saturday, Dec 27, 2025

Retailers are starting to charge fees to return stuff you bought online. Here's why free returns may be a thing of the past — and how you can avoid getting charged.

Retailers are starting to charge fees to return stuff you bought online. Here's why free returns may be a thing of the past — and how you can avoid getting charged.

Companies like H&M are considered charging for returns, while Zara already makes shoppers pay $3.95. Experts say this is just the beginning.

The era of free returns may be coming to an end.

While online shoppers may have grown accustomed to not only free shipping, but free returns as well, it's anything but free for retailers to take those items back: there's ground shipping to pay for, and labor involved in processing, sorting, and preparing those goods to be resold.

Amid a challenging year financially for many retailers — and the possibility of tougher times on the horizon — some companies have had enough, demanding that if customers want to send something back, they'll have to pay for at least part of that process.

Here's how we got here, which retailers are changing their tune, and what shoppers can do to avoid paying for returns.


Why are companies charging for returns now?

When the pandemic initially shut down physical retail stores, it accelerated the rate of online shopping — and the rate of returns.

Shoppers often "bracket" their purchases, meaning they'll buy multiple sizes or colors of the same item and send back what they don't want. According to data from the National Retail Federation, shoppers sent back about $100 billion worth of merchandise they bought online in 2020. In 2021, that amount jumped to about $218 billion. The average retailer sees $166 million in returns for every $1 billion in sales, according to the NRF.

This creates a massive headache for retailers, who have to shell out to get those items back, a process that's gotten more expensive amid higher shipping and labor costs, according to Erin Halka, senior director of solution strategy — commerce at supply-chain management firm Blue Yonder.

"You have to think about not just the cost of shipping, but it's the cost of labor, it's the cost of maybe cleaning that item, repairing it potentially too, repackaging it to make it look better so that the next customer that's receiving it does not realize it's already been in the hands of another customer," Halka said. "While we kind of think of just the shipping angle as recouping the cost, there's so much additional labor and materials that go into the workflow."

One estimate found that it costs a company 66% of the price of a product to process a return; another found that a return can cost a company $10 to $20, not including the cost of freight. Which means retailers are losing, on average, millions of dollars every year by letting you return your unwanted goods for free.


Which companies charge a return fee?

Free returns weren't always the norm: Halka estimated it's become a trend in the past four or five years, mostly thanks to Amazon setting that standard.

But that tide is turning. Fast-fashion retailer H&M said recently it plans to start testing a return fee to see how customers react, while Zara recently added a fee of $3.95. JCPenney, Abercrombie & Fitch, and J.Crew also charge for returns, typically around $7.50 or $8.

Of those who are charging customers to send back their unwanted items, the average fee is now around $7.50, Halka said.

Some companies have taken a different approach by offering free returns only to its most loyal shoppers. At DSW, for example, customers are charged $8.50 for a return unless they're members of the company's higher-tier VIP rewards programs, which require an annual spend of at least $200.


So what can consumers do to avoid paying for returns?

The easiest way to avoid paying to send your unwanted items back is to bring them to the company's brick-and-mortar location, as it's highly unlikely a retailer will charge for an in-store return. But there's a reason for that, and it can be a trap for customers.

"It's definitely the most preferred from a merchant's perspective, because it gets the customer back into the store and it's an opportunity to convert them again," according Hannah Bravo, chief operating officer at Loop Returns, which works with Shopify companies to automate the returns process.

Translation: Retailers are hoping something else will catch your eye when you come into the store to make your return.

For shoppers who don't live near the store, or if the company doesn't have a physical retail location, some retailers have begun offering other options, like the ability to drop off your return at Walgreens store, or to scan a QR code and be able to leave your item at a United States Post Office location. Those options are typically also free and sometimes easier to get to, especially in cities.

Or there are companies like Happy Returns, which have "return bars" stationed around the country. Customers can bring returns from a variety of brands to these locations, which are set up in high-traffic areas like shopping malls, and Happy Returns will consolidate them and send them back to the retailer. This method is cheaper for the retailer than paying to ship items back one by one, Bravo said.

And while it might be a little annoying to go out of your way to drop off a package, it may help keep prices down in the long run, because if returns costs keep rising, retailers will look for new ways to recoup those losses, according to Halka.

"Most likely to get to those higher margins, you have to add a higher price point to those items at the beginning of the buying," Halka said. "So this is kind of incentivizing the customer to take their part in getting those goods back without necessarily having to charge them for it."

Newsletter

Related Articles

0:00
0:00
Close
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
×