Retailers face a dilemma when it comes to returns. They want to have a customer-friendly policy, but they don’t want their businesses to be taken advantage of.

Returns cost money as, in many cases, the items can’t be returned to the manufacturer or resold through traditional channels.

“Retailers surveyed indicate their top priorities for 2026 are increasing online sales and reducing return rates,” the National Retail Federation shared in its 2025 Retail Returns Landscape report.

“Looking ahead, it is more important than ever for retailers to effectively manage the cost of returns while also bridging consumers’ growing expectations.”

The report also shared some key data on returns.

• Total returns for the retail industry are projected to reach $849.9 billion in 2025.
• An estimated 19.3% of online sales will be returned in 2025.
• 82% of consumers say free returns are an important consideration when shopping online. 
• Return fraud is an ongoing concern. The report found that 9% of all returns are fraudulent. 
• Almost half of shoppers (45%) say it’s acceptable to “bend the rules” when returning items.

The NRF is not alone in reporting on this problem.

“Rising return costs and fraud are pushing retailers to overhaul their policies,” Zak Stambor, a senior analyst for retail and e-commerce at Emarketer, told Retail Dive. “While many have rolled back free returns, others are taking more targeted steps to cut costs and curb abuse.”

Stambor added that retailers’ nuanced approaches “reflect the growing pressure…to balance customer satisfaction with operational efficiency.”

Here’s what Walmart, Target, and Amazon are doing for holiday returns

Amazon, Walmart, and Target tend to set the tone for other retailers. They also have the largest networks and strongest infrastructure when it comes to accepting returns.

For the 2025 holiday season, the three retail giants are only making minor changes.

Amazon, Walmart, and Target holiday return policies

• Amazon, Walmart, and Kohl’s each extend return windows through Jan. 31, 2026, for many holiday purchases. It’s important to know the specific policy for whatever item you are buying.
• Target’s return window “varies by item” in 2025 (electronics, entertainment, etc.). Source: Smart SMS Solutions

“I spent three hours last January racing to Target on what I thought was the last day of their extended return window. Turns out, electronics had a different cutoff — and I’d already missed it by four days. That iPad sat in my closet for another year because I assumed all holiday purchases followed the same rules,” a writer at Smart SMS Solutions shared.

Here are some other major retailers’ holiday return policies.

Many retailers have changed their holiday return policies.

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Sephora

• For purchases made Oct. 31 – Dec. 30, 2025 (in store or online), it offers an extended holiday return period: Returns or exchanges are accepted through Jan. 30, 2026.
• Important detail: In-store returns result in store credit (merchandise credit); online (Sephora.com) returns give online credit, not always a refund to original payment. Source: Sephora

Macy’s

• Purchases from Oct. 6 to Dec. 31, 2025, get an extended return window until Jan. 31, 2026.
• For mail returns: A $9.99 fee (for non–Star Rewards members) will be deducted from the refund.
• Returned items must be in “original, saleable condition” with tags. Source: Macy’s Customer Service

Best Buy

• Extended holiday return period: For purchases made Oct. 31–Dec. 31, 2025, most items can be returned until Jan. 15, 2026.
• Exclusions apply like activatable devices (e.g., cell phones, tablets with contracts) and holiday decorations are not covered by this extended window. Source: Best Buy

Marshalls, TJMaxx, and HomeGoods (TJX companies)

• For purchases made Oct. 5 to Dec. 24, 2025: In-store returns accepted until Jan. 25, 2026.

  Online purchases during that window can be returned by Feb. 4, 2026.

  Source: Marshalls

• New fee: Mail returns now cost $11.99. Source: TheStreet
• In-store returns remain free. Source: Marshalls

Kohl’s

• For holiday electronics, watches, and Sephora items bought within a certain window, Kohl’s is extending the return cutoff to Jan. 31, 2026.
• Kohl’s still doesn’t cover return shipping for mail returns. Source: Money Talks News

Ulta Beauty

• “Eligible products purchased from Ulta Beauty at Ulta Beauty Stores or on Ulta.com between November 1, 2025, and December 31, 2025, can be returned through January 31, 2026, the chain shared on its website.
• Refunds will be issued to the original form of payment. Purchases made after December 31, 2025, will follow the chain’s standard return policy.

Consumers need to be prepared for returns

While many retailers are getting looser with return windows for the holidays, they remain strict in other ways.

“Keep everything — receipts, packaging, tags, manuals,” Smart SMS Solutions shared. “Some items can be returned without these elements, but you’ll get better outcomes (cash vs. store credit, no restocking fees, longer windows) with complete documentation.”

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Time Magazine reiterates that advice.

“Always check the retailer’s return policy. This is especially important when shopping online. In particular, discount retailers often don’t take returns or will offer a merchandise credit, but not a refund,” the magazine shared.

You also want to be ready when you bring (or send) an item back.

“Preparation lessens the likelihood of conflict and speeds up the return process. Bring your receipt and I.D., and treat the merchandise you’re returning with respect,” it added.