According to a survey of retailers by the National Retail Federation, 6.4 percent of holiday returns are expected to be fraudulent this year. At the same time, numerous articles in the general media this past weekend warned consumers about over-stringent return policies.
According to the NRF, returns are expected to cost the retail industry an estimated $2.7 billion this holiday season and $9.6 billion this year. According to the survey of 134 retailers, 69 percent have changed their company's return policy to combat fraud, 16.9 percent tightened their policies, and 3.8 percent relaxed theirs. About one-third (28 percent) said their return policy is more flexible during the holidays than it is during the course of the year.
Among the issues driving fraud, 93.1 percent of retailers said stolen merchandise has been returned to their stores in the past year, 75.4 percent have experienced returns of merchandise purchased with fraudulent or stolen tender, and 43.1 percent have experienced returns using counterfeit receipts. Nearly half (46.2 percent) also report that wardrobing -- the return of used, non-defective merchandise like special occasion apparel and certain electronics -- has been an issue for their company within the past year.
Meanwhile, The Denver Post notes that some stores are easing up on what consumers can and cannot bring back and when. Best Buy extended its holiday return policy by a couple weeks but computers are still the standard 14-day return policy. Target is accepting returns without a receipt, limited to $70 in a year.
But Edgar Dworsky, founder of the internet resource site Consumer World, which makes an annual review of stores' holiday return policies, said consumers should be wary about return policies on different items. Some stores and websites charge restocking fees from 15 percent some places to as high as 60 percent for used or late returns at overstock.com.
Here, some other noted return policies:
- Wal-Mart has a 90-day return policy on most items; 15 days on PCs, GPS; 30 days on cameras; 45 days on PC accessories. Days counted begin Dec. 26.
- Amazon has supplemented its regular return policy with 29 different product-specific return policies, including restocking fees up to 20 percent depending on the item. It generally gives customers until Jan. 31 to return items purchased between Nov. 1 and Dec. 31.
- Macy's allows returns with or without receipt within 180 days from purchase. It includes a 10 percent restocking fee on furniture and mattresses.
- Sears enables a 120 days on most items, 60 days for electronics, software and beds; 15 percent restock fee on electronics with missing items.
- Items bought on Home Depot online cannot be returned to stores and customer pays shipping.
- At JC Penney, items can be brought back without a receipt within 90 days, but the amount of the refund will be based on the lowest on-sale price within the last 30 days and issued as a store credit.
- Staples has no deadline on office supplies; Jan. 9 for electronics and furniture.
- Bed Bath & Beyond and Kohl's both have no time limit for either in-store or online returns as long as you have a receipt.
Discussion questions: Are most retailers' return policies too strict or too lenient? In which aspects around returns (days before return, opened/used items, restocking fees, no receipt, store credit only, etc.) are stores likely overly-strict? In which areas are they likely too lenient?
- Retailers Find Balance as Return Policies Assist Honest Shoppers, Fight Fraud - National Retail Federation
- Returning a gift? Stores tweak policies to reduce fraud - St. Louis Post Dispatch
- Stores may ease return policies - The Denver Post
- The best and worst return policies of the holiday season - Walletpop.com