Gift Returns Leave Consumers at Disadvantage

We have all found ourselves stuck with a few gifts that we just can’t find a home for after we celebrate our birthday or during a gift-giving holiday but many times we don’t know what to do with them. Guilt sometimes interfers with financial sense. We don’t want to give it up but what else can we do?  Generally the first thought is to return these gifts for cash, store credit or an exchange.  A consumer report poll reports that one in five Americans will return a gift following the Christmas holiday.

If you are one of the many consumers returning gifts you’ve recieved, there are a few things to keep in mind when doing so.Retailers do not operate like they use to, namely because consumers have discovered and used many loopholes and the ease of returns to their unethical advantage.

In an attempt to fight return fraud, some stores have very strict return policies.  

•  What’s the policy? Before you spend a lot of time driving from store to store to return unwanted items spend a few minutes to research the stores return policy. 

• Don’t expect to get cash back if you don’t have the receipt.  Exchanges or store credit may be given for gifts that do not have the receipts.  If the item is on sale when you return it without the receipt you may get the sale price back rather than the full amount. 

• Restocking fees may apply if you don’t return the gift in its original packaging.  You may have opened a gift thrown out the box and decided that you no longer choose to keep it and attempt to return it.  Unless you have the original packaging the cost for restocking may eat up most of the reimbursement for the return if it’s not in its package.  Decide if it’s worth it to return the gift or find a use for it.

• Make sure your tags are intact.  If the tags from clothing are removed it’s likely that retail stores will not accept the return.  Attempting to return items without tags can be viewed as fraudulent.  Many retailers have policies that prohibit them from taking back or exchanging items without the tag.  Some stores are even adjusting the location of tags on clothing to make them more visible.  This tactic is thought to reduce the practice of people hiding the tag wearing the item and then returning it after having worn it.

• On-line returns can be costly.  Online returns often ask for a return authorization number and packing slip with on-line returns.  Shipping and handling charges can be expensive.  You may also have to pay for the charge to reship the item you are returning.