Returning items for an exchange or refund is an accepted part of the shopping experience to many Canadians. While most stores allow us to change our minds, return policies vary and some are passing on the cost as a restocking fee. This week, we’ll explore what these means and what to be mindful of when considering a possible return.

What happens to returned items?
Some such as intimate apparel or perishables will end up quickly at the dumps, while different fates await the others. The largest merchants often have agreements with manufactures which will “buy back” any returned inventory from the store. Other merchants may sell the returned item (at a lower price) back to their customers or clearance houses as an open box, as is, or refurbished item. Only in very rare cases will a returned item be back on the shelf in brand new condition at the original price.

The cost of restocking
There is a real cost for every returned item since it usually cannot be resold at the original price. What differs is whether everyone pays, or just the person doing the returning. The larger retailers (and manufactures), often bundle the cost of returns into the price of each item, causing everyone to pay a little bit more. This however, is often not an option for smaller operations or low margin businesses as returns by a few individual would make prices uncompetitive for everyone and drive the store out of business. In these situations, stores often enforce a restocking fee which is deducted from the amount given back to the returning shopper.

Return policy variance
We Canadians are fortunate to have a shopping climate where returning is an accepted norm, but this policy is not uniform and can differ greatly between stores, or even between different type of products within the same store. Consider the following:

• What return policy applies to this item I am buying?
• How long do I have to return this item?
• Can I return the item even if it is used or opened?
• Is this an in kind refund or store credit only?
• Are there restocking fees?

To help you make the most informed decision, Wishabi’s team of secret shoppers and analyzed each store for their return policies and other merchant attributes. To see them, mouse over the icons next to their offers or visit their store page on Wishabi.

Returning items is a unique privilege that give Canadian shoppers great peace of mind. However, it should be not be abused, as it has a real cost and we’ll ultimately pay for it in the end.