Retailers are quietly changing their return policies. Here's what to know

"'Tis the season for giving-and that means 'tis the season for shopping. Maybe you'll splurge on a Black Friday or Cyber Monday deal, thinking, "I'll just return it if they don't like it." But before you click "purchase," it's worth knowing that many retailers have quietly tightened their return policies in recent years. As a marketing professor, I study how retailers manage the flood of returns that follow big shopping events like these, and what it reveals about the hidden costs of convenience."

"Part of that staggering figure comes from returns fraud, which includes everything from consumers buying and wearing items once before returning them- a practice known as "wardrobing" -to more deceptive acts such as falsely claiming an item never arrived. Returns also drain resources because they require reverse logistics: shipping, inspecting, restocking, and often repackaging items. Many returned products can't be resold at full price or must be liquidated, leading to lost revenue. Processing returns also adds labor and operational expenses that erode profit margins."

Returns impose massive costs on retailers, totaling almost $890 billion annually in the U.S. A substantial portion stems from returns fraud, including wardrobing and false nondelivery claims. Returns also create reverse logistics burdens — shipping, inspecting, restocking, repackaging — which add labor and operational expenses and force liquidation or discounting of items. The growth of e-commerce increased returns by removing sensory cues like fit, texture, and true color, prompting more frequent returns after purchases. Many retailers have responded by tightening return policies to mitigate lost revenue and operational strain.

Read at Fast Company