The Truth About Paid Returns: What Every D2C Brand Must Know in 2025

Introduction

Returns are no longer just a back-end issue because they have become a pivotal part of the customer journey and a brand's reputation. As eCommerce expands and customer expectations rise, return and refund policies now directly influence purchase decisions, customer loyalty, and online reviews.

For businesses, a good return policy is a growth enabler, while a bad one can tank trust and retention. This 2025 Return Policy Report evaluates the brands that make returns effortless, and those that turn them into consumer nightmares. If you are a business evaluating your own return framework or benchmarking industry practices, this guide is your essential reference.

How did we calculate the return policy scores?

To prepare this Return Policy Report, we analyzed return and refund policies across 150 leading U.S. brands. Each company was rated on multiple criteria, including the standard return window, refund timelines, return shipping fees, in-store return options, use of store credit, availability of pickup services, and clarity of refund options. 

We also included policy examples from publicly available documentation and customer complaints logged on review platforms. From brands offering a free return policy template to those with no refund policy, we evaluated them all while creating this report.

Key evaluation criteria:

• Return Window: Number of days allowed to return items
• Refund Speed: Days taken to issue refunds to the original payment method
• Return Fees: Any restocking fee or return shipping costs
• Customer Experience: Availability of in-store returns, free return shipping, and online support
• Refund Policy Score: Scaled between 1 (poor) and 5 (excellent)
• Overall Refund Score: Weighted metric including customer feedback and clarity of the refund policy

Brands with the worst return policies

While many businesses are improving their returns experience, some brands continue to offer rigid, fee-heavy policies that frustrate consumers. Telecommunications companies top the list for their long refund delays and high return fees, followed closely by some fashion and department store brands.

1. Aritzia (Clothing Retail)

Despite its premium branding, Aritzia’s return policy feels punitive. With a $45 return fee and rigid exclusions on final sale items, customers often receive only store credit. Unfortunately, it is no different even when returning unused items in original packaging.

2. Verizon Wireless (Telecommunications Retail)

Verizon charges a $50 return fee and takes up to 60 days to issue refunds. Despite having return policy FAQ sections and contact details available, the execution rarely matches expectations.

3. Uniqlo (Clothing Retail)

This fashion giant offers just a 90-day return window and charges $7 per return. There is no support for free return shipping, and customers cannot request in-store pickup.

4. Zara (Clothing Retail)

Zara’s return policy appears streamlined, but has several hidden costs. Customers often have to accept store credit instead of a full refund, and return requests face tight timelines.

5. ThredUp (Online Retail)

Despite promoting sustainability, ThredUp’s return process is clunky. With limited options for digital products and personalized items, customers face steep deductions from their store credit.

6. Forever 21 (Clothing Retail)

Processing times of over 45 days, non-refundable shipping charges, and strict final sale conditions land Forever 21 on this list.

7. Saks Fifth Avenue (Luxury Department Store)

Refunds may take up to 12 days, and all returns incur a $10 fee. The store does not offer support for return pickups or free return shipping.

8. Neiman Marcus (Luxury Department Store)

Returns are accepted only with the original packaging, and the company charges a $10 return shipping cost. Store credit is often the only refund option for final sale items.

9. Dillard’s (Department Store)

Dillard’s limits returns to 90 days and charges $10 per return, regardless of reason. In-store support is inconsistent, leading to frequent customer complaints.

10. J.Crew (Clothing Retail)

Despite a more generous 180-day return window, J.Crew charges $7.50 for return shipping costs and provides refunds slowly. Refunds are often issued as store credit.

Worst Brands by Return Policy Score: Tabular representation

The worst performing category: Telecommunications

No category ranks lower in this Return Policy Report than telecommunications. Long refund processing times (up to 60 days), complex return policy templates, and some of the highest return fees in the industry plague companies like Verizon and AT&T. These companies rarely offer store credit or in-store return options, and final sale items comprise a significant portion of their inventory.

Meanwhile, luxury department stores follow closely with hidden restocking fees and refund delays that conflict with their premium brand positioning.

Worst categories by refund performance

Which brands offer customers the smoothest returns experience?

Let us now spotlight the companies setting the gold standard in return and refund policies. These brands offer a good return policy that builds customer trust through generous return windows, zero return fees, free return shipping, and quick refunds.

1. Chewy.com (Online Retail)

Chewy leads with a 365-day return window, $0 return fee, and refund processing in just 4 days. Their clear return policy and willingness to issue refunds without hassle have earned glowing reviews.

2. Discount Tire (Automotive Service)

With a year-long return window and no shipping fees, Discount Tire offers a return policy template other businesses should study.

3. Target (General Merchandise Retail)

Target offers free return shipping, in-store returns, and refund policy options that are unmatched in retail. Refunds are processed within 10 days.

4. Giant Eagle (Grocery Retail)

Giant Eagle offers a full refund within 5 days, accepts returned merchandise in-store, and maintains a straightforward refund policy.

5. Qurate Retail (Home Furnishing Retail)

Clear refund policy language, multiple refund options, and a customer-first return process distinguish Qurate.

6. Dick's Sporting Goods (Sporting Goods Retail)

With a 90-day return window and fast refunds, Dick’s earns praise for accepting returns even without original packaging.

7. Walmart (General Merchandise Retail)

Walmart accepts returns in-store and online, offers store credit when receipts are missing, and rarely issues return fees.

8. The Home Depot (Home Improvement Retail)

Home Depot offers a 90-day return window, expedited refund processing, and refunds to the original payment method or as store credit.

9. Costco Wholesale (General Merchandise Retail)

Costco’s standard return policy is one of the most flexible, especially for electronics and household goods.

10. Kohl’s (Department Store)

Kohl’s offers customers 180 days to return items, accepts returns without receipts, and provides refunds in-store or by mail.

Tips on what to look out for when returning products

Before initiating a return, both consumers and businesses should be aware of common pitfalls and best practices to make the return process efficient and compliant.

Best practices for returns:

• Always check the return window: Some items, such as electronics and digital products, have shorter timelines.
• Retain the original packaging: This is often legally required and is crucial for resale.
• Review refund policy template: Brands should clearly display their return policies to reduce confusion.
• Document everything: Retain receipts, screenshots of chats, and shipping confirmations.
• Offer store credit wisely: Look for goods suitable for retaining customers, but should not replace full refund rights.
• Understand state laws: Certain states have stricter consumer protection rules.
• Watch for restocking fees: Some brands deduct up to 15% without clearly disclosing it.

How ClickPost Shopify Returns Plus can help scale your store effortlessly

With return and refund policies now critical to customer satisfaction, the ClickPost Shopify Returns App is built for modern retail challenges. Whether you are a small business or an enterprise Shopify store, ClickPost automates your return process, improves the returns experience, and protects your margins.

Key features:

• Branded returns portal with self-service functionality
• Instant refunds via store credit or original payment method
• Custom rules for final sale items and personalized returns
• Real-time updates and tracking reduce customer complaints
• Return data analytics for refund trends and fraud detection

ClickPost empowers your business to efficiently accept returns, accurately issue refunds, and retain customers through a streamlined experience. Book a demo now and turn your returns into a revenue enabler.

Final word: The policy that builds loyalty

Returns are no longer an afterthought. Instead, they are an extension of your brand’s promise. Whether your business operates online or in-store, a well-written return policy can drive conversions, reduce customer complaints, and build lasting trust. Companies that proactively issue refunds, offer store credit, and accept returns across channels are winning in 2025.

The Return Policy Report reveals that while some brands continue to utilize refund friction as a deterrent, others employ it to enhance the post-purchase experience. The choice is yours: make refunds a point of friction, or a differentiator that keeps customers coming back.

Executive summary

The Return Policy Report 2025 ranks US-based brands on their return and refund policies to help businesses understand what drives customer satisfaction, and what ruins it.

Key takeaways:

• Best Return Policies: Chewy.com, Discount Tire, and Target
• Worst Return Policies: Verizon, Aritzia, and Uniqlo
• Most Consumer-Friendly Categories: Grocery, Home Improvement, General Retail
• Common Pitfalls: Long refund times, hidden restocking fees, and a lack of return pickup
• Consumer Trends: Shift towards free returns, store credit options, and real-time refund updates

In a world where customers choose brands that offer transparency, flexibility, and convenience, this report serves as a wake-up call for businesses that have yet to prioritize their returns experience.