Holiday Returns – Restocking Fees

We are in our second week of December. Most of us are already thinking about the holidays and gift giving.  Many stores are luring you to spend with statements like “we’ll refund your money if you are not completely satisfied” and “try it and you can return it for a full refund”.  I bet you have heard these offers before.  It might sound good, but you need to be aware of restocking fees. (No, these don’t have anything to do with your Christmas stocking.)

Retailers charge restocking fees to cover the cost of selling an opened package at reduced prices. For example, if you bought a computer and opened the box and then returned it, the retailer cannot sell that item as brand new.  Therefore, you might be charged a restocking fee.  That seems fairly reasonable to me.  Many retailers are adopting restocking fees.  You could see it on mattresses, automobiles and other items that don’t have package restrictions.

Restocking fees can be expensive, as much as 25%.   First, ask the store what the policy is and ask to have it in writing before you make the purchase.  Once you fully understand the policy, then determine if you want to make your purchase at that retailer.  If the purchase is for a gift, you might want to consider a gift card instead, so that the recipient doesn’t have to deal with the restocking fee.