We’ve all been there. Scrolling your favorite store from your phone in bed, debating whether to soak in the dopamine rush of reading “Thank you for your order” or coming to your senses and abandoning your cart altogether. Eventually, the internal debate would usually end with the same justification: Just get it. You can always return it.
This logic was particularly consoling during the holidays. Unwrapping an underwhelming gift felt like no big deal. You could always send it back for a refund/credit or exchange it for something else. Retailers know this, too, and have long accounted for a significant uptick in returns during January. According to the National Retail Federation, yearly returns total in the billions of dollars for retailers around the world. Whether it’s in preparation for the post-holiday surge or as part of a broader shift toward more strategic operations, many major brands are now rethinking and restructuring their return policies.
Why retailers are tightening return policies
Nearly three-quarters of stores are implementing some form of return fee, often a flat amount deducted from online order refunds. And it’s not just small operations making this change. We’re talking names like JCPenney, T.J. Maxx, and Marshalls, proving this is more than a minor change in the retail landscape.
Shifting return windows
Retailers typically extend their return window for purchases made during November and December to allow for the holiday gifting season. Some brands are now shortening this period. While the return window changes depend on the retailer, tighter return rules mean shoppers need to be more intentional and financially aware.
How to budget for stricter returns
Tighter return policies don’t have to mean surprise costs. Keeping a few strategies in mind will help you shop wisely:
1. Read the return policy before buying.
Know whether returns are free, time-limited, or credited only as store credit. Things like “final sale” are usually highlighted in red or bold letters. Look for these details and skip unexpected fees.
2. Wait before you buy.
Give yourself a cooling-off period before placing your order. While it might mean missing out on the thrill of anticipation, resisting impulse purchases is the best defense against losing money in the return process.
3. Track receipts and confirmations.
Nothing is worse than arriving at a store to avoid a return shipping fee, only to realize you don’t have what’s needed to process the return. Keep your orders organized—whether by flagging order confirmations or creating a labeled email folder—to make returns seamless and stress-free.
4. Build a “returns buffer” into your budget.
Even with careful planning, return issues can happen. Set aside a small discretionary amount each month, even just a few dollars per purchase, to cover potential return fees.
5. Prioritize quality over quantity.
Using discretion in your shopping habits isn’t just a great way to avoid return costs; it helps you fill your life with items that are made to last and truly serve you. For example, consider passing on those bargains like a poly-blend sweater on sale for next to nothing, and instead consider saving up and investing in a higher-quality cashmere version you can wear for years.
6. Consider loyalty programs.
Many retailers waive return shipping fees or offer extended windows for members. Sharing your email, phone number, or birthday for perks can help you track purchases and make the return process easier.
Bottom line
There’s no denying the retail landscape is ever evolving. Between the rise of e-commerce, changing consumer habits, and stricter return policies, shopping now carries more financial weight than ever. While it might seem inconvenient, these changes are an opportunity to be more intentional with your spending. In today’s age of shopping convenience, the only way to save yourself from return hassle and stress is by thinking before you click.
At Golden 1, helping you reach your financial goals is the reason behind everything we do. Take advantage of our Financial Wellness Center, where you’ll find budgeting tips, credit tracking tools, and a library of money-related articles and videos to support your financial journey.
