Holiday shoppers beware — the golden age of easy returns has ended

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These days, Santa's sleigh looks an awful lot like a delivery truck. And for many of the packages inside, their journey won't end under the tree. That's because roughly 19% of online purchases are ultimately returned, the National Retail Federation estimates.

An estimated $850 billion worth of goods were returned in 2025, the NRF projected — almost double the $428 billion in 2020. The cost of dealing with them is exploding too. "Everything about the cost of returns is rising," says Ellie Ronning, director of enterprise strategy at Signifyd , an e-commerce protection platform. "Shipping and processing costs are up. Inventory and managing inventory costs more. All of that is putting pressure on already-shrinking retail margins."

To stop the financial bleeding, stores are shifting the burden back onto shoppers. More are charging return fees, while others are shrinking return windows, getting pickier about what they'll take back and peppering buyers with questions about why a purchase didn't work out. Here's what you need to know as you tick items off your list, including how to give your purchases a smoother trip back to the North Pole — or, better yet, a fighting chance at skipping the return trip altogether.

Every return is a complex operation, and there's a cost attached to each step. "An online return can require transportation, customer service, inspection, fraud screening, grading, cleaning, repackaging and movement to another store, fulfillment center or liquidation channel," says Jackie Swanson, a managing partner at Gartner Consulting specializing in retail. Tariffs are also muddying the waters: A third of retailers charging for returns cited "economic uncertainty and [a] risk of tariffs" as one reason, according to the NRF.

It's no surprise, then, that shoppers are footing more of the bill. According to data from Loop Returns , 68% of the platform's retailers are attaching fees to at least some returns, compared with 43% five years ago. "Returns are a big cost center for retailers," confirms Simone Peinkofer , associate professor of supply chain management at Michigan State University. "For example, the cost to return an item is about 30% of the value of the product. After years of offering very lenient return policies to their customers, retailers have realized that returns are a high cost for them that should be managed."

Compounding the problem: According to the NRF, retailers estimate that about 9% of returns are fraudulent ("for example, someone sending back bricks instead of a TV," Peinkofer says). Then there are costly gray areas, such as shoppers who buy a sweater in three sizes but keep only one. That practice isn't fraud, but it still eats into a retailer's bottom line, experts say.

Take a beat when a Black Friday deal stops you in your tracks. "In the current economy, it may sound counterintuitive to focus on anything other than price," Ronning says. "But consider return policies before checkout, including fees, refund timelines and return windows. The lower upfront price may not be the best deal if returning the item becomes costly or complicated."

Loyalty programs are more than points and occasional coupons — joining may mean a retailer throws you a bone in the form of free returns or longer return windows. That way, "the cost falls mainly on occasional and high-return shoppers, not on a brand's best customers," says Rhon Bell, director of customer relationship management strategy at Cordial , a customer engagement and marketing platform.

A few examples: At Macy's, you'll pay $9.99 to return an item by mail unless you're a member of the retailer's Star Rewards program; at Gap, you'll pay $6 unless you're an Encore member. Both programs are free to join. And at REI, Co-op members get a whole year to return purchases, compared with 90 days for nonmembers. In this case, membership is a one-time $30 fee, but it comes with other perks like 10% back on eligible purchases annually.

Sure, you probably wanted to avoid the crowds by shopping online in the first place, but take note: Retailers that charge for returns by mail often let you off the hook in store. Retailers in this camp include J.Crew, Nordstrom Rack, JCPenney and Anthropologie, which charge up to $10 for mail returns but nothing if you bring them in.

Of course, this generosity comes with an ulterior motive: Stores are hoping you'll make an impulse buy or two while you're there. "The free in-store option pushes the return into a building where it turns into an exchange or an additional shopping trip," confirms Mike Danford, owner and chief revenue officer at e-commerce growth agency Adverio .

At many major retailers, holiday shoppers don't have to worry about making returns before the presents are even unwrapped. For instance, Macy's allows returns through Jan. 31 for purchases made from Oct. 5 through the end of the year, an improvement on its usual 30-day window. Similarly, Lululemon gives shoppers until Jan. 23 to return items purchased Oct. 13-Dec. 24. It's a win-win for shoppers and retailers, says retail expert Michael Klein , because it helps "inspire early holiday shopping and [doesn't] penalize a customer shopping in October or November."

Use a credit card with return protection

You probably knew credit cards often offer price protection, but how about return protection? "These policies allow cardmembers to make returns through the credit card company for items that a retailer wouldn't accept, or if they missed the return deadline," says savings and budgeting expert Andrea Woroch . "Review your cards' protection perks to figure out which one is best … or look for a new card offering this benefit."

Of course, be prepared to do some legwork: You'll probably be required to submit proof of purchase along with proof you were refused the return, and you'll need to read the fine print stipulating the items and purchase amounts that are covered.

Sounds obvious, but it bears repeating: You're more likely to avoid a return by exercising a little due diligence before you fork over your money. "The best return is the one avoided through a more informed purchase," Swanson says. She recommends scouring customer reviews and photos, double-checking item measurements and dimensions, and using newer tech like virtual fitting rooms or visualization tools when you can.

Researching your purchase is__ especially important when you're shopping small, says Jonathan Solis, founder of Miami-based Whisker Bark , which makes dog wheelchairs and other pet products. "The return you avoid saves you a trip to the post office, and it might help keep a small business open," he says. "Small shops either raise prices, charge for returns or tighten their rules, because we can't absorb it the way Amazon can." His store is still offering free exchanges, but it has started to require customers to take more detailed measurements for their orders in hopes of avoiding them.

As Solis says, it's the nation's biggest retailers that have the edge when it comes to easy returns. They have the scale to bring costs down even as they offer more conveniences for shoppers. Here's the lowdown on what to expect.

This 800-pound gorilla of e-commerce remains one of the easiest places to return an errant buy, but it has tightened the reins. While an Amazon spokeswoman told the Wall Street Journal that it won't close shoppers' accounts because of high return rates, it has started to give "informational notifications … on how to find the right product and avoid spending time on returns." It's also asking more questions about why shoppers are sending back items, something I noticed a few weeks ago while sending back sweatpants that didn't make the cut with a picky teen. Some items are marked as "frequently returned" as well, a signal for shoppers to look more closely before buying.

Still, Amazon is a standout because its massive footprint gives shoppers tons of options, most of them free. Kohl's, Whole Foods, FedEx Office, UPS Store and Staples locations accept Amazon returns, and in many cases, you don't even need to box them up. I'm a regular at the UPS Store down the street, where I pop my item into a plastic bag, scan a QR code to print out a return label, and send it on its way. Sometimes I'm barely out of the parking lot before I get my money back — a practice called "instant refunds" that some other retailers are starting to adopt, Ronning notes.

Amazon has also popularized "returnless refunds," Danford says. "When an item is low enough in value, shoppers don't have to return it. Amazon decides case by case, usually when shipping it back would cost more than the item is worth."

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All returns are free at Target, whether you take them back to the store or mail them in. And on an errand-packed day, you may not have to get out of your car. Several experts mentioned its Drive-Up Returns as one innovative effort to make returns seamless — you just give the store a heads-up via the app, pull into the parking lot and wait on a team member to come grab your item. Shoppers also get a relatively lengthy 90-day window for most returns, and a whole year for Target brands.

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Like Target, Walmart gives shoppers 90 days to return most items, and returns are free no matter whether you do them in store or by mail. Its answer to Target's Drive-Up Returns is curbside returns on eligible items, and customers can start that process right in the Walmart app. It also offers members of Walmart+, its paid loyalty program, free home pickup on eligible returns.

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This fashionista favorite is a rare bird — it has no set time window for returns, which are free both in store and by mail. "We handle returns on a case-by-case basis with the ultimate goal of making our customers happy," the retailer says . "We'll always do our best to take care of customers — our philosophy is to deal with them fairly and reasonably." Shoppers can print prepaid shipping labels to make their online returns via mail, or take most items to either Nordstrom or Nordstrom Rack stores for in-person returns. (Just note that Nordstrom Rack does charge a $9.95 fee for returns by mail.)

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This online upstart has become a mainstay with its "luxe for less" clothing and home goods, and its return policy is one of the most generous around. Shoppers get 365 days — yep, a whole year — to make their returns, which are always free despite the retailer's lack of brick-and-mortar stores.

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This UPS-owned company specializes in "reverse logistics" — that is, making returns as pain-free as possible — and has partnered with retailers including Everlane, Rothy's and Under Armour. Shoppers take their items to drop-off locations like the UPS Store, Staples or Ulta, where they're added to bulk-return shipments. There's no need to package them; a store attendant just scans a QR code and sends you on your way. The concept "allows multiple items to move together, reducing individual shipments and helping retailers process products faster," Swanson says.