Shoppers are spending big this holiday season, but returns are rising, creating tension between retailers and consumers.
Stores like Saks and Zara now charge return fees and shorten return windows to combat rising costs and return fraud, which accounted for nearly 14% of all returns in 2023, up from 10.4% the previous year.
Consumer Reactions
- Two-thirds of shoppers are deterred by stricter return policies, prompting some to avoid online purchases.
- Shoppers complain about inconsistent sizing and stock shortages, forcing them to order multiple sizes (bracketing).
Costs for Retailers
- Processing a single return costs $21 to $46. Some retailers use technology to reduce return rates or offer alternatives like in-store try-ons.
Tensions Rising
- Customers have reported denied refunds for unstained or misrepresented returned items, leading to viral complaints online.
- Despite these issues, holiday spending remains strong, with Black Friday sales up 3.4% compared to last year.
Retailers are working to balance stricter policies with better customer experiences as returns continue to grow.