London Daily

Focus on the big picture.
Friday, Mar 20, 2026

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
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
×