20+ companies canceling free returns

May 22, 2023

By Kim Komando

I thought this stat was interesting: The National Retail Federation reports for every $1 billion in sales, the average retailer incurs $165 million in merchandise returns. You know what this means: Say goodbye to free shipping and free returns when buying stuff online.

The big dog, Amazon, is starting to charge a $1 fee if you return items to a UPS store when there is a Whole Foods, Amazon Fresh or Kohl’s closer to your delivery address. Now, we’re seeing a waterfall effect across competitors.

Follow the (market) leader

Online retailers are handling this return policy change in one of two ways. They’ll either deduct fees from your refunds automatically or charge you for shipping back to them. 

🤦🏼‍♀️ I often shop the discount sites like Nordstrom Rack. A shirt I got last week would have cost me more to return. I guess I’ll wear it cleaning the boat. 

Take a look at this list of companies that are starting to charge for returns. Make a mental note to be careful when you’re not 100% sure you’ll keep whatever you’re buying. Knowledge is power, folks!

• Abercrombie & Fitch: $7
• Anthropologie: $5.95
• Barnes & Noble: Varies
• Big Lots: 20% of purchase price 
• Dillard’s: $9.95
• DSW: $8.50
• Foot Locker: $6.99
• JCPenney: $8
• J.Crew: $7.50
• Lands’ End: $6.95
• L.L. Bean: $6.50
• Kohl’s: Varies, plus a 15% restocking fee for large items
• Neiman Marcus: $9.95
• Nordstrom: $9.95 
• Petco: Varies
• PetSmart: Varies
• REI: $5.95
• Saks Fifth Avenue:  $9.95 
• Ulta Beauty: Varies
• Urban Outfitters: $5
• Wayfair: $4.99 for orders under $35, more for big items
• ZARA: $3.95

A bright spot … maybe. You might avoid these fees by returning your item to a physical store. Just don’t count on it.