Gearing up for gift returns

OK, so you didn't get everything you wanted on Christmas morning. Maybe the hot pink sweater from Aunt Millie wasn't exactly what you had in mind or that digital camera courtesy of cousin Fred didn't have enough megapixels. Whatever the reason, 16 percent of Americans plan on returning some of the gifts they received this season, according to Consumer Reports' final holiday poll.

If you're one of those estimated 33.6 million people, here's what you need to know to get what's coming to you.

• Time is on your side. Most retailers and Web sites waive their usual deadline for product returns, typically a week to 30 days, and give you until Jan. 31 to seek a refund. If you're unsure of a specific store policy, examine the bottom of your receipt or check the store's Web site.

• You'll need a receipt. Despite longer grace periods, about one-quarter of retailers are tightening return policies, according to the National Retail Federation (NRF). Merchants have in the past been fairly generous in taking back goods without a gift store or gift receipt -- offering shoppers who can't produce documentation at least store credit for the lowest price the item sold for -- but now we're seeing more chains, such as Toys R' Us, announce that they won't take anything back without a receipt. For online returns, you'll probably need a packing slip, and return authorization number as well. When giving a gift, it's a good idea to keep all original packaging and tags.

The stricter requirements are no doubt motivated by the growing number of fraudulent returns cutting into retailer profits in recent years. An NRF study estimated that phony returns will cost businesses $3.5 billion this holiday season. According to the NRF survey, the most prevalent form of fraud is the return of stolen merchandise, goods bought with counterfeit money, and items returned with fake receipts. "Wardrobing," the industry's term for the return of used merchandise (the dress worn to a single party, for instance, or camcorder purchased to commemorate a special occasion), is another problem.

• You're being watched. Pilferage has also prompted some major retailers to implement computerized return authorization systems to help them decide whether to deny your return. The systems take into account factors such as how much time has elapsed since your last return, the number of items you're returning, the dollar value of the goods, as well as your overall return history, whether you have provided receipts in the past, and the number of stores you've sought returns from. Tracking policies aren't always posted at the register, but if the cashier asks for your driver's   license, for instance, chances are they're keeping tabs.

• Brace yourself for restocking fees. Merchants can't resell as new any item after the box has been opened, so they penalize you for doing so. Such policies for electronics gear and computers have been in place for a long time, and the fee for returning an open box is typically 10 to 15 percent of the product's purchase price. Special orders, if they can be returned at all, may also be subject to restocking fees. Sears now imposes a 15 percent restocking fee for tires, some appliances, automotive, lawn and garden, and home improvement products "not returned in the original box, unused, and containing all original product packaging and accessories."

• Don't open the package if you don't want what's inside. Items like computer software, music CDs and movie DVDs aren't generally returnable for another title after the seal has been broken. Some stores, though, will give a partial refund.

• Can you can return it offline? If you bought an item online and the merchant has a brick-and-mortar counterpart, check the Web site to see if you can take back the merchandise to the store and avoid repackaging, a trip to the post office, and shipping fees. A merchant might be willing to dispatch a carrier to your home to pick up large goods that need to be returned. Also, ask if the seller is willing to pay for shipping. While it doesn't often happen, there are exceptions, especially if the item is defective.

Comments

[BoZo McRee]

Macy's is instructing their employees to tell the
customer that the little sticker placed on the purchased item is sufficient for a return. The store sold the item for $39.99 and later has a 4 hour early bird sale offering the same product for $19.99. The unsuspecting customer gets the lowest price offered when they return the item.
They do not offer a gift reciept that coveys the
original purchase price. Federated Department Store customers should keep all of their reciepts.

[Sharon]

Thanks! The info in the last paragraph was helpful. I didn't realize we could have items picked up at the door or return to an actual store when bought online. Great info.