In 2022, returns hit an all-time high of $816 billion worth of merchandise, according to the National Retail Federation. In 2023, that number dropped to $743 billion, which seemed to suggest that retailers have made some progress in curbing what one Forbes headline called the “The Billion Dollar Return Nightmare.”

With companies such as Amazon offering generous online return policies, an arms race ensued among rival retailers that has led to an avalanche of returns, creating new costs and logistical challenges. To combat these problems, here are some of the ways they are innovating this age-old retail practice:

Targeted bans: On the more extreme end, some retailers are going so far to ban customers who have frequently abused their returns policies. Target recently updated its policy to say it “reserves the right to deny returns, refunds, and exchanges including but not limited to prevent fraud, suspected fraud, or abuse.” REI has similarly banned a small number of customers from making returns, telling one local news source the bans represented “less than 0.02% of 24,000,000-plus [members].”

• Per the annual NRF survey, returns abuse and fraud costs retailers $101 billion in 2023.

Upfront fees: In an example of a more preventative measure, other retailers are charging upfront fees for online returns in order to recoup some of the costs. This practice is most common among apparel outlets such as Zara, American Eagle, H&M, and even discounters such as TJ Maxx. And despite the obvious benefit of offsetting costs, these fees have stirred some debate in the industry over its effectiveness, with some arguing that return fees hurt customer loyalty, an increasingly “scarce commodity.”

Keep reading here.—AV

Much as you pride yourself on finding Uncle Jerry the perfect gift, chances are he would have preferred a gift card. For this holiday season, gift cards are the most popular wish-list item, requested by 53% of consumers, according to the National Retail Federation.

But retailers take note: Consumers are growing increasingly aware that not all gift cards are created equal, and before you slap a fee on them or decline to offer significant discounts, know that those choices won’t go unnoticed.

At least not by WalletHub, which recently rated 50 of the most popular gift cards, primarily from chain retailers and restaurants, on several factors, among them whether the cards charge shipping or purchase fees, and the average buyer discounts and resale value.

The carder they come: Tied for the top spot, all with a ranking of 65 out of a possible 100, are gift cards from Amazon, Target, and Sephora; they’re followed by Walmart, with 61, and Starbucks, with 60.

None of those at the top of the list charged shipping or purchase fees, and the steepest of those fees that WalletHub calculated were for Visa and Mastercard gift cards, both charging $6.90; followed by American Airlines and American Express, both charging $4.95; and Taco Bell, charging $2.50.

When it comes to resale value, Costco is tops, with the average resale value for a $100 gift card of $87.10, followed by Home Depot ($85.50), Best Buy ($84.31), and a tie between Whole Foods and Disney ($84).

Keep reading here.—AAN

It’s Thanksgiving week, and Black Friday weekend is almost here. If you’re a retailer, you’ve been preparing for this moment for months. But if you have time for anything else these next few days, here is what else is happening in retail:

In earnings: There’s a good mix of earnings all dropping on Tuesday, with big box, discounters, and department stores all releasing Q3 results. On deck are Dick’s Sporting Goods and Best Buy, both of which had strong second quarters, though the latter signaled some concern about how the presidential election would impact consumer spending. Abercrombie & Fitch and Macy’s, meanwhile, had a tougher time in Q2, but Nordstrom expressed optimism about the second half of the year.

In live shopping: While we don’t have the space to list out every Black Friday deal dropping this week, celebrities such as Martha Stewart, Eva Mendes, and Jennifer Hudson are hosting live shopping events on Amazon Live’s FAST Channel, Facebook pages, and Instagram feeds.

In charity: In the lead-up to Giving Tuesday, there are plenty of opportunities to give back this week. The nonprofit Feeding America is working with a number of national partners this holiday season, including Amazon Fresh, which is donating $0.10 to Feeding America for every purchase of a select Amazon private label product.

In closures: A number of retailers are closing for Thanksgiving this year, including The Home Depot, Lowe’s, Best Buy, Costco, Aldi, and Five Below, to name a few, and many of them will be opening up bright and early on Black Friday.—AV