"In the U.S., the number of retailers requiring a return fee has jumped from 66% to 72% this year, according to a new report from the National Retail Federation and Happy Returns. Around 33% of merchants surveyed said they began charging or increasing fees for returns due to "economic uncertainty and risk of tariffs," per the report. Joe & Bella, which sells adaptive clothing for seniors and people with disabilities, has offered free returns for online shoppers since the company was founded in 2020. But Joe & Bella manufactures all of its goods in China, one of the most heavily tariffed countries. Trump recently threatened to impose tariffs on Chinese exports as high as 130% by November 1, up from the current baseline rate of 30%."
"Instead of raising prices, Joe & Bella implemented a shipping protection service in July that customers can opt into for a fee - usually $1 to $2 per order - which covers guaranteed shipping protection and offers free returns and exchanges. If a customer does not opt in, they pay for their own return label, typically $7 to $12 per package. The company is saving roughly 80% of its previous return-related costs, co-founder Jimmy Zollo told Modern Retail."
Tariffs have increased retail shipping and return costs, prompting many merchants to limit free online returns. The share of U.S. retailers requiring a return fee rose from 66% to 72% this year, and about 33% said they began charging or raised fees because of economic uncertainty and tariff risk. Brands that manufacture in China face higher exposure as proposed tariffs could reach 130% from a 30% baseline. Some retailers now offer optional shipping-protection fees, typically $1–$2, to cover return labels and exchanges, while non-opt-in customers pay $7–$12 per return. These changes reduce return-related costs for small businesses.
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