REI Tightens Return Policy to Limit Serial Offenders

REI is putting limits on its return options to curb people who have “abused” its generous policy.

The outdoor co-op told FN in a statement that is recently updated its return policy to include “an exception for members that have abused” the policy in the past by returning or exchanging too many items. Now, these members will no longer have the option to return or exchange items at REI.

REI’s return policy allows members to return eligible items for up to a year.

“We’ve tried to curb this behavior by some members over the past several years with targeted warnings and probationary periods. Unfortunately, these tactics have not proven effective,” REI said.

The new rule will apply to less than 0.02 percent of the retailer’s 24 million members, or people who “have demonstrated a clear abuse of the return policy,” REI said. The retailer noted that these members have an average return rate of 79 percent and have returned $2,400 worth of product the past year. $1,400 worth of that was used, REI said.

Other retailers have also recently impelemented harsher policies for returns to mitigate excessive returns and exchanges. According to a February survey from digital supply chain provider Blue Yonder, a majority of retailers surveyed (89 percent) reported that they were tightening restrictions around returns, including enacting fees and reducing the return period. However, 59 percent said they still saw an increase in returns.

Return fraud costs retailers more than $100 billion in overall losses in 2023, according to a report from the National Retail Federation.