Why retailers are charging return fees and how to avoid them

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Why retailers are charging return fees and how to avoid them
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The era of free returns may be coming to an end. Here's why retailers have started charging return fees — and how you can avoid them.

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. 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.start testing a return fee

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

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. , which have"return bars" stationed around the country.

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