Smart Buying

No-Hassle Holiday Gift Returns

To ensure many happy returns, make sure you have a receipt, the package is unopened and you return the item promptly.

December 23, 2009

Editor's note: This story was updated in December 2009.

It's time for the perennial question: Will they like what you got them? And if not, can they return it?

The answer is probably yes, but to make sure you're on solid ground, it pays to know what the company's return policy is before you buy, advises Andrea Ayers, Business Unit President for Convergys Corporation. As always, being an educated consumer could save you a lot of stress -- and money.

Here are six things you should know to ensure many happy returns:

1. Keep the receipt

You know the drill: Everything must be returned unused and in the original package, and you should have a receipt. Don't worry -- including a gift receipt isn't tacky. It's "the most wonderful thing in the world," says Peter Post, co-author of The Etiquette Advantage in Business and Essential Manners for Couples. It says to a person: I thought you would like this, but if it's not right, feel comfortable taking it back, and I'm making it easy for you.

No receipt? You may only get a merchandise credit -- and then only for the lowest price at which the item was sold in the past 30 days. Some retailers limit the number of times you can return items without a receipt. Other retailers only let you return items without a receipt up to a certain price. Several may not give you a refund at all without a receipt.

2. Don't delay

You usually have from 30 to 90 days to return unwanted gifts. But you should act quickly, especially where apparel is concerned and electronics are concerned. For example, digital cameras and camcorders purchased at Best Buy or Circuit City must be returned in 14 days. Products bought on December 24 can be returned through January 7. For all other Christmas gift items, the absolute deadline for returning them is January 31, 2010.

The good news is that some retailers offer decent return deadlines, or extended deadlines during the holiday season, according to Consumer World, an online consumer resource guide. Here are some of this season's most generous policies (with a receipt, of course):

• Amazon.com: January 31, 2010, for purchases between November 1 and December 31.

• Best Buy: January 31 for purchases November 1 or later; January 8 for certain electronics

• Costco: No deadline on general merchandise; 90 days for electronics

• Eddie Bauer: No deadline

• Kohl's: No deadline

• Macy's: 180 days from purchase

• Target: 90 days from purchase

• Wal-Mart: 90 days for general merchandise; 15 to 30 days for electronics and PC accessories

3. Don't want it? Don't open it

Not the flat-screen TV you wanted? Wrong computer or portable DVD player? Don't open it. A growing number of retailers will charge you a percentage of the purchase price (generally 15%) for restocking.

Restocking fees are most common for electronics. But more retailers are charging for returns on other items, so make sure you know the policy. Macy's for example, charges a 10% restocking fee on mattresses and furniture. Sears levies a 15% fee on mattresses, built-in appliances and special orders (as well as some open electronics). And Home Depot takes 15% for special orders that are returned.

Although retailers say they're merely trying to recoup the cost of repackaging items, the fee is meant to discourage one-time use of equipment. Some consumer advocates think it's unfair. "The fee is not only poorly disclosed, but it's also too high," says Gail Hillebrand, senior attorney at Consumers Union. Know the store's policy in advance.

4. Habitual returners be aware: You may be blacklisted

Return fraud, which includes bringing back used merchandise for a full refund, will cost the retail industry an estimated $9.6 billion for 2009 -- with nearly one-third of that loss stemming from the holiday season, according to the National Retail Federation. That's why an increasing number of chains are monitoring returns. Each time you bring back an item, your driver's license may be swiped, especially if you return without a receipt. If you exceed a store's set limit for returns, you're out of luck.

"What concerns me is that this system punishes both the honest consumer -- for example, the busy mother who buys clothing for her kids to try on at home -- as well as the crooks," says Edgar Dworsky, founder of Consumer World.

5. Returning online purchases could get confusing

The good news is that online retailers are making it easier for customers to return items, says Convergys's Ayers. Many of the big chain stores, including Costco, Gap and Wal-Mart will let you return online purchases to their brick-and-mortar stores. Ayers says more online retailers are also including prepaid shipping labels for returns with your orders. BedBathandBeyond.com, Macys.com and Zappos.com are among sites with this service.

But there are caveats. For example, items marked "online only" may need to be mailed back. Some sites' free return shipping deals may only apply for exchanges, not refunds. And retailers that have teamed up with Amazon.com may or may not allow items to be returned to their physical stores. Keep your packing slip handy to avoid additional hassles.

6. You could sell that gift card

Although you cannot return gift cards to the store for cash, you're not entirely out of luck if you get one that doesn't suit your taste. At GiftCards.com and Gift Card Granny you can sell your unwanted gift card for a percentage of its balance. You also can buy discounted gift cards at these sites.

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