Your Holiday Gifts May Be Harder to Return This Year

Consider yourself warned.

The period of mid-November through late December is when consumers tend to do a lot of holiday shopping. But January is when consumers tend to flock to stores for a different reason -- to make returns.

It's common to take advantage of sales during the November-December shopping boom, only to regret some of those purchases after the fact and bemoan the giant credit card balance they've caused. And so you might already be sitting on items in your home that you're thinking of taking back to the store.

Similarly, sometimes, people give out holiday gifts with the best intentions that aren't so well-received. Your aunt might give you a lovely sweater that just isn't your style or doesn't fit the way you'd like it to. And the new kitchen gadget your spouse gives you may be useful -- for someone who cooks. If that's not you, you're looking at yet another item that might need to be returned.

But this year, you may not have as easy a time returning holiday purchases as expected. And that's something to keep in mind as you shop for and open gifts.

Retailers are getting stricter

The National Retail Federation reports that retailers expect about 18% of merchandise sold during the holiday season to be returned. That's just par for the course.

But this year, some retailers are putting stricter return policies in place. And those could make it harder for you to get your money back, or to get store credit in the event of a gift you've received but don't want to keep.

In fact, 60% of retailers are making changes to their return policies. Many are shrinking their windows for returns, and some are imposing restocking fees for returns. And more retailers are curbing the practice of offering free returns for online purchases.

Why the shift?

Just as many consumers are buckling under the weight of inflation, so too are retailers feeling the pain. Since retailers are facing higher costs, it stands to reason that they might be less generous when it comes to returns.

Also, stricter return policies might prevent consumers from buying extra items. And that way, retailers don't have to deal with the hassle of restocking inventory or dealing with returns and exchanges.

How to avoid losing out

If you have a tendency to return holiday purchases, do yourself a favor this year and read up on each retailer's specific policy before swiping your credit card. Doing so could save you a lot of aggravation in January.

At the same time, it'll help to be more judicious about the things you buy in the first place. If you're not sure about a certain item, don't rush to scoop it up just because it's on sale unless you know you can return it easily.

As far as gifts go, well, that's always been a bit of a mixed bag. Some people give gifts without including a gift receipt, and often, if you want to return something in that scenario, you're out of luck.

Otherwise, your best bet may be to head to the store as quickly as possible once you've been given a gift you don't want. And if that doesn't work, you can always make plans to re-gift items that aren't a good fit for you, or even donate them to charity to help the less fortunate.