British retailers are significantly tightening their return policies ahead of the crucial Black Friday shopping period, marking a dramatic shift from the pandemic-era culture of free, no-questions-asked returns that consumers have grown accustomed to.
The End of Free Returns Era
Shoppers across the UK are encountering stricter conditions when returning unwanted items as merchants attempt to recoup massive losses from returned goods. During the COVID-19 pandemic, retailers heavily promoted free shipping and returns to encourage online shopping while physical stores remained inaccessible. However, this convenience has created what experts describe as a 'ordering first and asking questions later' shopping mentality that's proving unsustainable for businesses.
An estimated 17% of holiday sales will be returned in 2025, with 82% of shoppers returning unwanted gifts within a month of receipt, according to an October report by the National Retail Federation and Happy Returns. The scale of returns represents a staggering financial burden, with overall returns in 2025 projected to cost retailers nearly $850 billion (£670 billion) globally.
Why Retailers Are Changing Policies
Professor John Rosen, an economics expert at the University of New Haven, explained to The Independent that the enormous volume of returns has forced retailers to implement stricter measures. 'It's a huge problem for retailers to deal with,' Professor Rosen stated. 'So to deal with that exploding cost, yes, many are trying to restrict returns.'
The changes are already visible across the retail landscape. Currently, 72% of US retailers charge a fee for at least one return option, up from 66% last year. Major chains including Macy's, Zara, and H&M have introduced return shipping fees ranging from $6 to $9.99 for non-rewards members. Even Amazon, which pioneered easy returns, now sometimes charges customers to ship back unwanted items.
Professor Rosen noted that retailers are increasingly offering store credit rather than cash refunds to maintain revenue. Beyond direct financial pressures, businesses cite several reasons for the policy changes:
- Rising shipping costs and economic uncertainty
- Increased risk of tariffs impacting profitability
- Growing concerns about retail fraud, including 'wardrobing'
Impact on Holiday Shopping Behaviour
The timing of these policy changes coincides with broader consumer caution about holiday spending. According to Nationwide's 2025 Economic Impact Survey, roughly two in five American consumers (42%) plan to spend less this holiday season compared to 2024, despite easing inflation.
Higher costs for essentials like groceries, utilities, and rent are forcing many households to prioritise bills over gift purchases. Additional financial pressure comes from tariffs, which LendingTree estimates could cost consumers $28.6 billion (£22.5 billion) this holiday season, averaging about $132 (£104) per shopper.
Among those cutting back, nearly half (49%) expect to buy fewer gifts, while 38% will opt for less expensive presents. A significant 20% say they won't buy any gifts at all.
Despite the tighter return policies, some retailers are extending return windows for the holiday season. Amazon, Kohl's and Walmart will accept returns for purchases made from November through December until January 31, 2026, while Best Buy and Macy's offer returns through the end of December.
The Federal Trade Commission's Consumer Advice division recommends shoppers research return policies carefully and keep receipts to navigate these changing conditions during the busy holiday shopping period.
