The increasing popularity of ‘bracket buying’ (buying multiple sizes with the intention of returning whatever doesn’t fit) and ‘wardrobing’ (buying clothes, wearing them for an event, then returning them for a full discount) also leaves retailers holding the bag. The fashion industry bears the brunt of this, since fit is not an exact science. “You’re not buying a ballpoint pen,” says Toronto-based independent retail expert Bruce Winder, “so you need to try it on, and you need to touch and feel the garment and see if it looks good on you.”

Ultimately, around $212bn in online purchases in the US were returned in 2022. That’s far more than many retailers are able or willing to tolerate. In fact, according to Winder, the e-commerce operations of some retailers are effectively underwritten by their brick-and-mortar sales.

This is the central reason why more and more retailers are introducing these fees, whether they’re charging only for online returns or also include in-store. For many businesses, even though they’re not recouping all their costs by charging customers, they are asking for some money as a matter of solvency.

Playing a long game for profits

Yet although retailers are looking to make up for some of their losses, they’re also playing a longer game to change consumer habits and even grow revenue.

For one, as much as the raw dollars make a difference, if return fees give consumers pause to shop more consciously – say, double-checking their measurements instead of bracket buying – companies can end up reducing their overall return costs going forward with a lower volume of goods coming back to warehouses.

In some cases, the introduction of return fees can also increase profits. For example, says Alexander, some retailers will allow customers to return items for free if they bring them back to a brick-and-mortar location, rather than sending it through the mail. And that means increased store foot traffic.

“When a customer returns an item in the store,” she explains, “they are 70% more likely to spend not only their full refund, but up to 20% beyond the cost of the item.”