Image Courtesy of Macy's
Several major retailers now charge customers to return items by mail, even when those items are unopened, unused, and exactly as they arrived. In most cases, returns are free when dropped off at stores.
The cost of returns has risen for retailers as e-commerce has grown. Beyond shipping costs, the cost to process a return can be anywhere from 20%–65% of the item's original value. The return fees also combat fraud.
Macy's started charging $9.99 return fees for non-Star Rewards members in 2023.
"Through our Macy's Star Rewards program, members enjoy free shipped returns as part of their loyalty benefits," a spokesperson told NBC Chicago. "Customers can still return items to any Macy’s store free of charge."
Foot Locker similarly offers free returns for FLX Rewards members, while deducting a $6.99 fee from refunds when using its Ready Returns label. L.L.Bean’s returns through UPS or U.S. mail cost $6.50 per package, or are free for customers using an L.L.Bean Mastercard.
JCPenney’s mailed-in returns include an $8 fee. On its website, JCPenney states of the reasoning behind the charge, “UPS will ship your order back to JCPenney for the flat $8 fee. This has been significantly discounted and will cover your entire return from a single order.”
TJ Maxx has charged a fee of $11.99 for return-by-mail since 2023.
Other stores charging for mailed returns include Zara, with a fee of $4.95; J.Crew $7.50; H&M, $3.99; and Urban Outfitters, $5. Kohl’s and Ulta Beauty customers have to cover any return shipping charges. Amazon now only promises “at least one free return shipping option.”
Some Retailers Stick Fast on Free Returns, Mailed or Otherwise
Several major chains nonetheless still offer prepaid labels to cover gratis mailed returns on most items, including Walmart, Target, Costco, Nordstrom, Gap Inc.’s banners, Victoria’s Secret, Sephora, and Apple.
The National Retail Federation’s “2025 Retail Returns Landscape” study done in collaboration with UPS-owned Happy Returns found a majority (72%) of merchants now charge for at least some return options, up from 66% in 2024.
Among the benefits seen from implementing fees for returns from the retailers surveyed was a reduction in overall return rates, cited by 53%; an increase in exchange rates, 52%; shoppers choosing a different, free return method, 51%; recouping revenue from returns, 43%; and a reduction in return fraud, 42%.
On the downside, 47% of the retailers surveyed indicated that implementing fees for returns led to an increase in customer complaints, with 37% saying they’ve lost customers over return fees. The implementation of return fees led to an increase in return fraud for 44% of respondents, and a reduction in exchange rates for 37%.