Nearly everyone has had the experience of opening a gift from some well-intending friend or relative and having to fake a smile. Maybe it’s the wrong size, perhaps it’s something truly awful, or maybe you just own one already, but no matter the reason, you will need to return the item.

“The eCommerce boom, fueled by unprecedented convenience and ‘no questions asked’ returns policies, has created an expensive problem for retailers,” said Pollen Returns founder Spencer Kieboom. “Consequently, returns cost retailers about $218 billion annually as 20% of their inventory is now tied up in the returns process. Retailers are now re-evaluating their approach to returns from policies to resale strategies.”

On the positive side, most retailers still offer free in-store returns. That can be a challenge, however, if you don’t have a receipt, according to the Better Business Bureau (BBB).

“Always include a gift receipt with items you give, and hold on to any gift receipts you receive,” the non-profit agency shared.

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Not having a receipt may impact your ability to make the return.

“Returning gifts without a receipt can be tricky. Without a receipt, most retailers offer store credit or an exchange rather than a full refund to your original method of payment, especially if the item is marked down or on clearance,” the BBB added.

Returns are a big part of the holiday season.

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Top Retailers: Holiday return policies and fees

• Macy’s: Purchases made Oct. 6-Dec. 31, 2025 can be returned until Jan. 31, 2026. Store returns are free, but mail‑in returns incur a $9.99 shipping/return fee for non‑Star Rewards members, deducted from the refund. Star Rewards members get free shipping, according to Macy’s Customer Service.
• Target: Extended holiday return window for many purchases (electronics and entertainment bought Nov. 1-Dec. 24 must be returned by Jan. 24, 2026; some exceptions like Apple products have earlier deadlines). In‑store and standard mail returns are generally free with prepaid labels,” Target shared.
• Walmart: Purchases made Oct. 1–Dec. 31, 2025 have an extended return deadline of Jan. 31, 2026 for most items. Walmart free returns apply for most Walmart.com items; Marketplace sellers may set their own return fees, according to Walmart’s website.
• Amazon: Most holiday purchases made Nov. 1–Dec. 31 can be returned until Jan. 31, 2026, with free returns for many items (especially for Prime members). Some heavy/bulky or special categories may deduct return fees if certain options aren’t used,Amazon shared on its website.
• Best Buy: Extended return window for purchases made Oct. 31–Dec. 31, 2025 with returns accepted until Jan. 15, 2026; Restocking fees up to 15% of the item price for opened electronics, and a $45 restocking fee on activatable devices like phones and tablets, according to the Best Buy website.
• TJX Stores (T.J. Maxx, Marshalls, HomeGoods): Purchases made Oct. 5–Dec. 24, 2025 can be returned in‑store until Jan. 25, 2026 and online (mail) until Feb. 4, 2026.

  Mail returns cost $11.99 per package, avoidable by returning in person.

  Sources: T.J. Maxx, Marshalls, HomeGoods

• J.Crew: Holiday mailed returns typically have a $7.50 shipping/return fee deducted from the refund (fee schedules may vary by item/season),J. Crew posted on its website.
• REI: Returns mailed back incur about a $7.99 shipping deduction from the refund for standard packages (policy variable by weight and location), according to the REI website.
• Dillard’s: For mailed holiday returns, a $9.95 label/return fee may be deducted; additional restocking charges can also apply, Dillard’s shared on its website.
• JCPenney: Has a roughly $8 mail return fee (plus possible fees for large pickup/restocking on big items), deducted from refunds,JCPenney posted on its website.
• American Eagle: Many online returns carried a $5 return fee for mailed items during the 2025 holiday policy, avoidable if returned in-store or under certain membership perks, the retail chain shared on its website.
• Sephora: Offers an extended holiday return period (through Jan. 31, 2026 for eligible purchases), but returns may only issue store credit in some cases rather than full refunds online, Sephora posted on its website.

Retail returns are a growing problem

“Retailers estimate that 15.8% of their annual sales will be returned this year, totaling $849.9 billion, according to the 2025 Retail Returns Landscape report released today by the National Retail Federation (NRF) and Happy Returns, a UPS company. The returns rate is in line with 16.9% last year, when returns totaled $890 billion.”

The report shared some other key data points when it comes to returns:

• While overall return rates may remain steady, some areas are facing more pressure than others. According to the report, an estimated 19.3% of online sales will be returned in 2025.
• Additionally, as Gen Z’s influence grows, so does their impact on returns. Those between the ages of 18 and 30 made 7.7 returns of online purchases in the last 12 months, on average, more than any other generation.
• Consumer expectations are increasing around returns. Free returns are a major draw for shoppers, with 82% citing them as a major consideration when making a purchase, up from 76% last year.

  Consumers also value immediacy, with 76% saying they are more likely to choose a return option that provides an instant refund or exchange.

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