In recent years, several large e-commerce retailers have revised their return policies to address challenges such as return fraud, operational costs, and environmental concerns.

Notable Retailers that have revised return policies

Amazon: In August 2024, Amazon allowed sellers using its fulfillment services to issue refunds without requiring customers to return the item, aiming to reduce reverse logistics costs.

Walmart: The retailer increased return shipping rates for its third-party sellers in 2024. Additionally, Walmart Marketplace sellers can permit customers to keep items and receive a refund, avoiding return shipping expenses.

REI: In November 2024, REI began declining returns from a small subset of members who had abused its generous return policy, with some individuals exhibiting an average return rate of 79%.

Target: The company updated its return policy to combat customer abuse and return fraud, allowing the store to deny returns, refunds, and exchanges to prevent scams.

H&M: As of February 3, 2025, H&M increased its online return fee from £1.99 to £2.95, applying this charge to all customers, including loyalty program members. In-store returns remain free.

ASOS: In October 2024, ASOS implemented a £3.95 fee for returns unless customers retain items worth £40 or more. Premium subscription members need to keep items worth at least £15 to avoid the fee.

Zara: The retailer introduced a $3.95 fee for returns made to drop-off points in the U.S., encouraging customers to utilize in-store returns, which remain free.

Abercrombie & Fitch: The company now charges a $7 fee for mailed returns, aiming to offset the costs associated with processing returns.

J.Crew: J.Crew deducts $7.50 from refunds for items returned by mail, incentivizing customers to consider in-store returns when possible.

What Led to the Shift?

1. Rising Return Fraud – In 2024 alone, U.S. retailers lost upwards of $100 billion due to fraudulent returns and claims.
2. Increased Online Returns – Return rates for online purchases are 2–3x higher than in-store.
3. “Bracketing” Behavior – Customers order multiple sizes/colors and return most of them.
4. Operational Costs – Processing and restocking returned items costs retailers billions annually.
5. Environmental Concerns – Many returned items end up in landfills due to high processing costs.

Turn Costly Returns to Customer Wins

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At Pinch AI, we believe retailers shouldn’t have to choose between retention and margin. The era of one-size-fits-all returns and refunds should be behind us.

If your business generates over $100M in annual sales in Apparel, Footwear, Durables, or related industries, let’s talk. Pinch AI can help with striking the balance you are looking for while driving significant savings.