In an era of online shopping, buying clothes in multiple sizes and returning what doesn't fit has become second nature. "Free returns" sounds like a consumer-friendly policy, but this seemingly harmless shopping habit could be quietly eroding your finances in ways you haven't considered.
Let's break down the hidden costs. When you order multiple sizes of the same item, you're typically tying up significant amounts of money in temporary holds on your credit card or depleting your current account. While you'll eventually get refunded, this money could be out of your account for 7-14 days after the return is processed. If you're making multiple purchases across different retailers, you could easily have hundreds of pounds in limbo at any given time.
This practice can lead to dangerous financial territory. If an unexpected bill arrives while your money is tied up in returns, you might need to rely on overdrafts or credit cards, incurring interest charges. Moreover, many shoppers forget to track all their returns, leading to missed return deadlines or lost items in the returns process – a costly oversight.
There's also the growing trend of retailers charging for returns or requiring returns to physical stores. While brands like ASOS and Zara still offer free returns, many are introducing fees ranging from £1.99 to £3.99 per return. Making three returns per month could add up to nearly £150 annually in return fees alone.
To shop more efficiently: