With analysts estimating shoppers would spend at least $13 billion on Cyber Monday, some retailers are upping the fees when it comes to returns. They say the main reason for the change is an increase in fraud.
According to the National Retail Federation, of $743 billion in returns in 2023, $101 billion, or 14%, were fraudulent. That’s a 10% jump from the year before. Businesses say that stealing is cutting into revenue.
The consulting firm McKinsey says retailers pay anywhere from $21 to $45 to process a single return. As a result, companies are passing some of that cost down to consumers. Saks Fifth Avenue now charges $9.95 for returns by mail. Neiman Marcus charges a similar fee, especially if items are returned after a certain date.
Saks is now conducting more thorough inspections of returned products in order to cut down on fraud.
However, those fees and scrutiny have lead to some pushback from angry customers when the retailer sends their item back without a refund.
@brittanypaigedesigns @Saks Fifth Avenue You should be ashamed of yourselves. you’re robbing customers #saksfifthavenue #saks ♬ original sound – Brittany Paige
One customer of Saks even went on social media to complain when the company refused to issue a refund on a dress that cost nearly $700. That same customer also filed a complaint with the Better Business Bureau.
It’s worth noting that shoppers can typically return online purchases at the physical brick and mortar store, for free.
