Restocking Fees – The 411 

What is a restocking fee?

This is a standard fee that is usually deducted from the total dollar amount of any product/products that are returned, for whatever reason, other than because of damage or related shipping errors. (See paragraph below – When Restocking Fees NOT Applied).

A restocking fee generally is deducted when a credit for a refund is applied.  For example, if an item that costs $100 is returned and there is a 15% restocking fee, the fee would be $15.00.  This amount would be deducted from the total refund applied to your credit card once the return is processed.

What is the amount of traditional restocking fees?

Although restocking fees and policies vary widely by company and industry, in general, the restocking fee in the hair and beauty industry will range from 15% to 25%. 

Many large retail stores such as Best Buy, Circuit City, Sears and Target all charge 15% - 25% restocking fees for many returned items although there are variations upon what items may be returned and what items carry a restocking fee.  Other companies may charge or waive restocking fees depending on special circumstances that are usually outlined in the fine print of the company’s invoice.

It is the responsibility of every buyer to read the fine print for any return policies and be aware of any return fees before purchase is finalized.  Companies that randomly waive restocking fees can be held legally responsible if they make exceptions for some returns and not others. 

Why do companies charge restocking fees?

Accepting returns is a costly business.  Many honest, honorable and customer oriented companies no longer accept returns under any circumstances except for damaged items, because returns result in losses for the company. 

Restocking fees are applied by many honest companies on returned products to try to keep costs and prices down when dealing with the return of items that are not defective.  There are many costs associated with processing a return.  When customers buy something and return it, the company has to deal with very real costs to handle the return.

What does product returns potentially cost a company?

Because returns, even when partially automated, require the attention and ongoing intervention of a Customer Care or similar type of customer representative, the cost of human intervention is immediately costly. All credit card service providers also automatically charge transactions fees to companies for customer purchases as well as customer returns.  There are very real costs to a company for accepting and processing returns from the credit card service providers.

Frivolous and fraudulent returns are rampant which can seriously impact the prices that consumers now pay for their retail goods and services. 

Do all products qualify to be returned?

Many companies will not accept returns on certain items because of specific health codes.  This items includes some forms of clothing, some types of consumable hair and beauty products, hair accessories or hair tools (brushes, combs, hair extensions, hair rollers) or items that could be used to spread disease when used and then returned to the company as "unusued or unworn".  Many companies will impose a time limit for returns that generally range from 14-30 days after purchase. 

When in doubt, ask before you purchase, if you are unsure if a product can be returned.

What is a typical return process?

When a return is requested via email or by phone, most companies follow a similar process which is followed by HairBoutique.com. 

These steps include:

1. A Customer Care rep receives the return request and determines whether a return is acceptable given HairBoutique.com published guidelines.  (Returns are not provided for items that are opened or used, have been worn or expressively marked as “All Sales Final”.).  Returns also must fall within a certain time period from purchase.
2. If the return request is approved, an RMA # is issued and the customer is provided with the steps that they need to take to return the item. Customers are informed that they responsible for any damage that is incurred in return shipping.  A return can not be accepted if it is received back at HairBoutique.com in a non re-salable condition.
3. Once the returned item is received at HairBoutique.com a Customer Care rep opens the return package and carefully examines it for damage and to verify that it is resalable and unused.
4. The appropriate credit is applied to the customer’s credit card (minus any restocking or other fees) or applied to their account.  This credit is processed through the appropriate credit card service provider.  All credit card companies charge HairBoutique.com a transaction fee for return processing and applying a credit back to the customer’s account.
5. The customer’s HairBoutique.com account is updated with all RMA information.
6. An e-mail notification is sent to the customer informing them that their return has been processed and is referred to their credit card provider for additional information.
   Note:  While HairBoutique.com immediately applies the credit to the credit card account, some banks and credit card companies will not show that the credit has been applied for up to 30 days after HairBoutique.com has applied the credit.  Unfortunately once HairBoutique.com applies the credit, it has no further control over how the individual credit card companies handle posting or processing individual credits.  When in doubt please contact your credit card provider.
7. The product is re-packaged appropriately and added back into the current marketplace inventory database.
8. A warehouse rep physically restocks the warehouse shelves with the products that have been returned. 

Throughout the entire return process a Customer Care rep is responsible for answering ongoing correspondence (emails, phone calls) with the customer requesting a refund.

How do you determine a company’s return policy and whether they require a restocking fee?

Most companies will clearly post their return policies on their website and some will post their returns at the bottom of their invoices.  HairBoutique.com not only clearly publishes their return policies on their Marketplace site, they post links and references to it at the bottom of every printed invoice.  When in doubt email Customercare@hairboutique.com for advance clarification.

Are returns just a normal cost of doing business?

Many consumers claim that returns are a cost of doing business and that the company should just absorb them and deal with them.  Many companies may do that.  However, keep in mind that when companies do not charge a restocking fee to handle the cost of returns, they don’t “absorb” the costs, they pass them on to all of their other customers.  That means you.

When you buy from a company that has no restocking fees, YOU are paying for any frivolous, fraudulent or abusive returns that a company handles through hidden or indirect costs or much higher prices.

If a friend or acquaintence brags to you that they bought a new suit and wore it once and returned it to a high end store that does not have a restocking fee, keep in mind that it is almost guaranteed that either the original suit vendor had to “eat” the return costs or you eat it at your next purchase.  Do you want to pay higher prices for other customers that abuse the return system?

Bottom line – do not summarily dismiss a company solely on the basis of charging restocking fees, but rather, find out the conditions under which a company will charge them. Even the most reputable of smaller vendors will charge restocking fees for the return of some non-defective items, because if they do not, they cannot offer competitive prices.

When are restocking fees NOT charged?

HairBoutique.com and reputable firms do not charge restocking fees under the following circumstances:

• If the wrong item was sent to you.
• If you cancel an item before it was shipped out. 
  Note:  This may not be the case if the item was a custom or special order.
• When the product sent to you is damaged in shipping (this includes broken bottles, leaking items, and unusable items due to crushed packages).
• Unusual circumstances that are agreed upon with the company in advance.
• When the item you bought is nothing like you expected.  For example, if you ordered a pink headband and it is bright orange.

When are restocking fees waived?

If you are a long time or repeat customer many companies will offer a store credit which if it is accepted, will allow you to bypass a restocking fee.  This guarantees the company that they will be able to recoup any costs lost through processing your return with a future order.

First time customers or customers that threaten, demand or harass companies over a standard restocking fee will most likely not have the restocking fee waived under any circumstances.  Customer care reps respond best to polite and considerate customers rather than abusive, threatening or demanding ones.  If you wish to have a restocking fee waived, offer to accept a store credit instead of a credit card credit.  This saves the credit card transaction fee and shows good faith that you will be a repeat customer in the future.

Taking the humans with humans approach with restocking fees & returns

HairBoutique.com is in business to make a profit.  HairBoutique.com would love to be able to offer a “try me” service on all our products.  Unfortunately we can not succeed as a profitable company if we do not recoup our doing-business expenses.  We are very happy to accept and process returns in a polite and prompt manner when they fall within our published return policies, but when a return costs us money to handle, we must chargeback for our costs in a fair and reasonable manner.

It is the responsibility of HairBoutique.com to provide clear images of the items for sale in our Marketplace.  It is also the responsibility of HairBoutique.com to provide clear descriptions of the item available for purchase. We take extreme measures to provide exceptional images and descriptions of all the items that are sold through our online store.

It is the responsibility of our customers to understand what they can return, the fees involved and to ask questions in advance if they are unsure about the items that are desired to be purchased.

Always remember that regardless of the size of HairBoutique.com, it is comprised of humans just like you.  The HairBoutique.com Customer Service Reps are tasked with following the formal written return policies of HairBoutique.com.  However, the HB.com Customer Service Reps are still people who deserve to be treated with respect and consideration.   Like any humans, they may not respond well to threats, bullying or inappropriately aggressive or abusive language.  There is never a call for rudeness under any circumstances.

Questions about restocking fees?

When in doubt please ask.  HairBoutique.com goes out of their way to warn customers that wish to make a return of the costs involved BEFORE the RMA# is provided.  We also go out of our way to warn about restocking fees before purchase via our published policies page.  We also print a link to our return policies on all invoices.  Hairboutique.com strives to be a fair and honest company.  However, we do need to be recover our business expenses in a fair and reasonable way. 

For questions about returns or restocking fees or purchases, please email HairBoutique.com Customer Care.  Customercare@hairboutique.com.

Thank you for your co-operation, support and understanding!

The HairBoutique.com Team