Rachel Cruze: 6 Return Restrictions To Know That Can End Up Costing You Money

Everybody knows how important it is to control their spending and stay within their budget , but we all make impulse purchases from time to time. Whether it’s new clothes or the latest electronics, most of us have bought something and later wondered why we did it.

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When that happens, you can get back on track by returning the item to the store — but only if you know the company’s policy. That’s become more important than ever, according to financial expert Rachel Cruze .

In a recent video on her YouTube channel , Cruze highlighted the six examples below of how retailers can toy with their return policies and cost customers money. Let’s review them so you don’t overlook anything before making your next major purchase .

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Shipping Costs Aren’t Always Refunded

According to USA Today , 40% of retailers charged return fees in 2023 — up 9% year over year. That may be tied to the economic climate and the profitability challenges retailers are facing because of it.

For the average consumer, it means you can’t necessarily count on returning something you buy online for free. That may not be a huge deal when you pay only a few bucks for shipping, but it can really eat into your finances on larger purchases that cost a lot to ship, like furniture.

The solution could be making your next big purchase at a physical store. If you don’t have the item shipped, the store won’t be able to deduct those costs from your potential refund amount.

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Restocking Fees Can Be Unexpectedly High

Next, Cruze said to watch out for restocking fees before making your next purchase. These can reportedly range from 10% to 25% of the original purchase price, but vary by retailer and product.

Stores aren’t necessarily trying to get one over on you with this return restriction. Because of the rise of online ordering, returns now take more labor hours to process than they used to. As retailers hire more people to manage their stock, they sometimes pass those costs on to consumers as restocking fees.

Beware of Return Fees, Too

According to Cruze, 81% of retailers had a pay-to-return policy in 2023. This is a more generalized fee, which can encompass restocking and shipping costs among other charges.

That being said, each of these fees is really a different term describing the same concept. Retailers are facing increased costs and passing them on to customers as return fees, restocking fees and shipping fees.

Some Retailers Have Shortened Return Windows

You may also want to start paying closer attention to return windows. Some stores give you months to make returns, while others may offer as little as 14 days. Cruze said the latter is more common for small businesses, which sometimes have to restrict their return windows to stay afloat financially.

For example, a small antique store might sell a $1,000 sofa and use the revenue to cover its expenses. If the customer tries to return the sofa the next month, the store owner may not have the extra $1,000 to give them. Larger retailers tend to have more flexibility with this, which is why their return windows are often longer.

Store Credit Only

Next, Cruze reminded us to read the fine print detailing how the stores you shop at process returns. Depending on the company, you may receive only store credit.

That may be OK if you still want to spend the money, but what if you’re trying to get back on track with your budget?

Discounted Items May Be ‘Final Sale’

Finally, many retailers won’t let you return items you bought at a discount. The store may have offered that discount only as part of a broader promotion, or the company may have been selling the item at a loss to clear its inventory.

Either way, it’s another restriction you’ll want to look for before making a purchase you may want to return.

How To Avoid Losing Money on Returns

Retailers will likely continue experimenting with placing restrictions on returns, so what can you do to avoid losing money?

First, try to look at a store’s return policy before checking out. You can do that online with a quick Google search, or you can just ask the cashier before paying in person. You’ll want to know about any restrictions before finalizing the purchase.

You can also protect your money by getting more intentional about budgeting. For example, you could allocate some cash every month to fun purchases and impulse buys. This could help you avoid major splurges and stay on track with your budget.

That way, you get to keep what you buy without needing to worry as much about the return policy.

This article originally appeared on GOBankingRates.com : Rachel Cruze: 6 Return Restrictions To Know That Can End Up Costing You Money