Goodbye free online returns! Shoppers urged to double-check refund policies on Christmas shopping – 4 in 10 retailers now charge for mail-in returns including $12 at TJ Maxx

The era of free online returns is coming to an end as many retailers discontinue the service.

Ahead of the Christmas holidays, shoppers are urged to double-check the refund details of all their online orders.

About 40 percent of companies will charge fees for returns this year report from retail company Narvar. The charges are mainly applied to online orders returned by post.

And they can cost more than $10. Analysis of a select number of brands found that TJ Maxx charged the highest return fee of $11.99, while Zara offered the cheapest at $3.95.

It marks a significant shift in attitude from retailers who have been competing for customers by offering highly convenient, hassle-free services.

According to a report from retail company Narvar, about 40 percent of companies will charge fees for returns this year. The charges are mainly applied to online orders returned by post

But there have long been concerns that consumers are abusing the option of free returns on online orders – picking up dozens of products knowing that many will be refunded.

Data from the National Retail Federation (NRF) shows that about 16 percent of sales were returned last year, up from 10.6 percent in 2020. In total, the NRF estimates that these refunds cost retailers $800 billion.

Global Data retail analyst Neil Saunders told DailyMail.com: 'We see consumers often using the home as a fitting room. They buy a lot of clothing, knowing that some of it will be returned.

'Now companies are trying to get consumers to think more carefully before they buy something.'

He added: 'This year has been very difficult for retailers and there is a lot of pressure on them to reduce costs.'

When a customer returns a product by mail, there are several costs to the retailer.

H&M charges a $5.99 “return fee” for its non-loyalty members. Shoppers can return online orders in-store for free.

TJ Maxx, which charges the highest amount of $11.99, calls this a “shipping and handling fee”

These include the upfront shipping costs, as well as logistics, handling and repackaging costs. The NRF estimates that a retailer pays $33 for each return it facilitates.

While no retailer fully passes these costs on to consumers, some charge more than others.

For example, Zara, American Eagle Outfitters and Urban Outfitters all charge $5 or less for a refund. Urban Outfitters calls it a “restocking fee.”

Meanwhile, H&M charges $5.99 for “return shipping” for its non-loyalty members. Shoppers can return online orders in-store for free.

TJ Maxx, which charges the highest amount of $11.99, calls this a “shipping and handling fee.”

Similarly, DSW calls the $8.50 fee “shipping,” while Rei Co-Op says the $5.99 fund is used to cover “shipping for standard size/weight packages.”