The returns logistics company goTRG estimates that, on average, the return on a $50 product eats up anywhere from $20 to $28 in shipping, processing and repackaging costs, with resale prices not making up the difference.
With the cost of labor and fuel popping last summer, increasing numbers of retailers are following Wayfair’s model by requiring customers to pick up at least some of the cost of shipping on returns, including Abercrombie & Fitch, Foot Locker, Kohl’s and L.L. Bean — the latter once famed for its lifetime guarantee of a full refund on most products it sold.