Goodbye, free returns | CNN Business (2024)

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Goodbye, free returns | CNN Business? ›

Americans have grown accustomed to free returns, but a growing number of retailers are charging fees as returns squeeze retailers' bottom lines. Macy's, Abercrombie, J. Crew, H&M and other companies have all added shipping fees for mail-in returns. And it's not just the big mall brands, either.

On June 1, 2024, the updated returns processing fee will go into effect for products with high return-rates (except apparel and shoes). This was announced as part of the 2024 US fee changes. Fee charges will occur after the close of each three-month period.

A $1 fee will be added if customers have another free return option that's the same distance away or closer, Business Insider reported. However, A free option is still available. “We always offer a free option for customers to return their item,” Amazon spokesperson Steve Kelly wrote to Insider by email.

Clearing excess inventory helps retailers avoid destroying returns and dumping them in landfills. In essence, the era of universal free returns is likely over.

Starting on June 1, 2024, Amazon will implement a returns processing fee for products with high return rates across all categories, excluding apparel and shoes. This fee aims to cover the operational costs of returns and encourage a reduction in waste.

Beginning June 1, 2024, Amazon is going to assess a returns processing fee for high-return rate products in all categories, excluding apparel and shoes. Here's the Amazon announcement: The fee will only apply to products that have return rates above a threshold specific to each category.

In recent years, Amazon has been cracking down on what it deems as excessive returns, suspending sellers who it believes are abusing the return policy. Sellers who are suspended for excessive returns are typically notified by Amazon via email, and the suspension can be temporary or permanent.

According to Amazon, the new fee is part of an effort to trim returns costs and rely on UPS less. But there are ways to avoid it. Free returns are still being fielded at other drop-off locations — including Whole Foods, Kohl's and Amazon stores.

A replacement order, with the same shipping speed as the original item, will be created. You'll need to return the original item by the 'Return By Date' provided to you at the time of return creation to avoid being charged for keeping both the original and replacement items.

What stores are doing away with free returns? ›

Macy's, Abercrombie, J. Crew, H&M and other companies have all added shipping fees for mail-in returns. And it's not just the big mall brands, either. Eighty-one precent of merchants are now charging a fee for at least some methods of returns, according to Happy Returns, a logistics company that specializes in returns.

Free Returns Can Inspire Return Fraud

A notable downside of a free returns policy is its potential to encourage return fraud. This can manifest in several forms, such as 'wardrobing,' where customers buy items with the intention of using them briefly before returning.

Increase brand loyalty

In a survey by Klarna, 86% of online shoppers agreed that they are more likely to return to online merchants who offer free returns and 75% said that they will buy more over time if free returns are offered.

Returns are always free. If you're considering a purchase but are really worried it won't qualify for free return shipping if it doesn't work out, order it through Alexa. Physical merchandise ordered through voice-shopping with Amazon's digital assistant always comes with free returns, regardless of the reason.

Fifty percent of consumers ditch a purchase due to a lack of convenient return options. Label-free and package-free returns eliminate these challenges and simplify the process. According to 87% of consumers and 99% of retailers, free returns are most important to shoppers.

In recent years, Amazon has changed its return policy for customers and sellers. These changes aim to streamline processes, enhance customer satisfaction, and maintain a balance between flexibility for buyers and security for sellers.

Deadlines for Returns in 2024

As previously noted, most items can be returned within 30 days for a full refund. However, there are exceptions to this rule that you should be aware of: Electronics: Items such as laptops, tablets, and cameras must be returned within 14 days of delivery.

About Free Returns - All return-eligible items, weighing under 50 lbs and sold by Amazon, have at least one free return option.

Most of the time, a warning about too many returns is enough to keep shoppers from going overboard. However, Amazon may use its discretion on a case-by-case basis to occasionally ban shoppers from Amazon if they are abusing the return policy.