Customers don't want to pay for mail returns, but more retailers are charging for them. From TJ Maxx to Kohl's, here are some of the biggest companies where sending items back will cost you.
- Most retailers let customers return items for free. But some charge for returns by mail.
- Generally the return fee is taken off the refund and customers can return items in-store for free.
- Urban Outfitters, TJ Maxx, Kohl's, Levi's, DSW, and Anthropologie charge for some mail returns.
If a company doesn't offer free returns, chances are customers will be put off.
A recent report by shipping software management companies Metapack, ShipStation, and consultancy firm Retail Economics found that only 24% of shoppers are willing to pay for returns, based on a survey of more than 8,000 people across the US, UK, Canada, Australia, Germany, France, Italy, and Spain. The proportion is down from 27% in 2022, suggesting that inflation may be impacting how much people can afford to splash out on purchases.
The report says that shoppers' willingness to pay for online returns is falling, as retailers begin to pass on the cost. Companies including TJ Maxx, Best Buy, Kohl's, and Urban Outfitters now charge for some mail returns in the US.
However, the survey showed that younger generations, who are not necessarily conditioned to free returns, are more accepting of these charges.
Source: TJ Maxx
Source: Abercrombie & Fitch
Source: Urban Outfitters
Source: J. Crew
Source: Levi's
Source: Kohl's
Source: JCPenney
Source: Best Buy
Source: Anthropologie
Source: Uniqlo
Source: American Eagle
Source: Neiman Marcus
Source: Coach Outlet
Furs, watches, and jewelry have to be returned within 30 days of shipping; other non-discounted items can be returned within a year of shipping but the customer will be credited at the current selling price, which is not necessarily a full refund.
Source: Saks Fifth Avenue
Source: Saks Off 5th
Members of the company's higher-tier VIP rewards programs, which require an annual spend of at least $200, get free returns.
Source: DSW
Source: Fabletics
Source: Zara
Instead, customers have to pay a shipper of their choice, like UPS, USPS, or FedEx, to return them. These companies include Hobby Lobby, Bloomingdales, Barnes and Noble, Wayfair, and Bath & Body Works.
Sources: Hobby Lobby, Bloomingdales, Barnes and Noble
Returns are more expensive and more complex to process than outbound packages, Metapack, ShipStation, and Retail Economics wrote. Handling an online return costs retailers around a fifth of the original order value, they said.
Free returns and flexible policies are also driving serial returners to view purchases as "risk-free discoveries," the report found.
For example, a shopper may buy two different style dresses or one dress in two sizes with the intention of only keeping one – a practice known as bracketing. The retailer will only get revenue from the items the customer keeps, but will have to pay for the costs associated with return postage, cleaning the products, and delivering them to the shops or warehouses where they need to be.
Plus, pushing customers to return items in-store rather than by mail can actually boost sales, as they have to walk past displays of items when they visit.
But adding fees for online returns could risk alienating customers, the report says. A survey of more than 2,000 US consumers by Happy Returns, a company that helps retailers process their returns, found that 87% of respondents check a retailer's return policy before making a purchase online, with many looking for free returns.
Correction: December 21, 2022 — An earlier version of this story used an image of a Coach retail store which suggested that Coach charged for mail returns company-wide. It is only Coach Outlet that charges for mail returns.
Contributer : Business Insider https://ift.tt/6rvTyN5
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