Rise of the return fee

Summary

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Marketplace Morning Report – "Rise of the Return Fee"

Date: December 26, 2025
Host: Novasafo (for David Brancaccio)
Runtime: ~8 minutes

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Episode Overview

This brisk, business-focused episode addresses the rising trend of return fees for holiday shoppers, explores how consumer boycotts impact shoppers themselves emotionally, and briefly discusses how big tech is responding to the new political environment under "Trump 2.0." The episode provides a snapshot of business news with a focus on consumer behavior, psychology, and corporate strategies in a shifting economic and political landscape.

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1. Rise of Retail Return Fees

[00:55–02:32]

Key Discussion Points:

• Post-Holiday Returns: As shoppers start returning gifts after Christmas, many will face new return fees.
• Prevalence: According to the National Retail Federation, "72% [of retailers] will do so this holiday" (Novasafo, 00:59).
• Bracketing Phenomenon:
  Edgar Dworski (ConsumerWorld.org) explains,

  "They will get, let's say, pants—three different sizes and colors of pants—not knowing which one they're going to want to keep. They'll keep one item and return the other two."
  (Henry Epp quoting Edgar Dworski, 01:29)

• Costs to Retailers: Returns via mail incur significant postage and processing expenses.
• Retailer Strategy:
  • Many companies are now introducing return fees (especially for mail returns) to offset these costs.
  • "You begin to see some companies saying enough. And they're slapping a fee on returns, especially returns by mail," (Henry Epp, 01:39).
• Customer Pushback & Risks:
  David Sobey (CEO, Happy Returns) notes,

  "It may turn shoppers off altogether and have them say, gosh, you know, I'm just not willing to buy from this merchant anymore."
  (01:49)

• Alternatives:
  • Returning in-store often remains free.
  • It's less expensive for retailers, and shoppers may make additional purchases during the visit.

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2. The Psychology of Consumer Boycotts

[02:32–05:29]

Key Discussion Points:

• Boycott Campaigns: Reference to the "We Ain't Buying It" boycott targeting Amazon, Home Depot, and Target.
• Impact on Shoppers:
  Host Rima Krais discusses how boycotts emotionally affect individual consumers, not just company revenues.
• Street Interviews:
  • Commonly boycotted brands: McDonald's, Target, Amazon, Chick-fil-A, Hobby Lobby, Starbucks.
  • Reasons include political influence, business practices, and prices.
  • Notable quote:

    "Because I don't like the way that they use their money to influence our politics."
    (Anonymous Portland shopper, 03:29)

  • Debate about individual impact:

    "I want to boycott, but sometimes I feel like if only I'm contributing to it, then what change will happen? But I guess that's a sheep mentality."
    (Suyash Pazi, 03:49)

• Emotional Repercussions:
  Lindsey Brian Podvin (financial therapist) discusses anxiety and second-guessing:

  "This anxiety around how do I boycott the right way, how do I do it right? How do I not mess up?"
  (04:00)

• Decision Fatigue:
  Everyday purchases feel like moral decisions, causing emotional strain.

  "Like, what do I do if the only diapers I can buy that don't give my baby a rash come from Target? And I'm trying to avoid it, but I can't put my child in something that they have a reaction to."
  (Lindsey Brian Podvin, 04:29)

• Guilt vs. Shame:

  "Guilt is external. I did something bad. I made a mistake. Shame is internal. I'm bad. I'm not good at this. I don't understand."
  (Lindsey Brian Podvin, 04:53)

• Systemic vs. Individual Responsibility: Boycotts place a heavy burden on individuals for systemic issues.
• Potential Positives:
  • Participating in boycotts can be empowering:

    "You can just feel better about the way that you're using your dollars."
    (Lindsey Brian Podvin, 05:16)

  • Meaningful spending can offer psychological benefits, especially in times of uncertainty.

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3. Tech Industry and the Political Climate

[06:22–08:22]

Key Discussion Points:

• Tech Leaders and 'Trump 2.0':
  Business leaders, especially in tech, are making efforts to align with the current administration.
• Strategic Engagement:
  Suyash Pazi (Human Rights Research Center) observes,

  "The tech leaders sort of need to be more agreeable to the government, to the federal government than ever than they have been in the past."
  (07:19)

• Recent Examples:
  • Bill Gates and other leaders dining with Trump to influence issues like US Aid.
• Motivations:

  "A lot of tech leaders, I think, recognize the only way they can get something out of the administration, it seems like at the moment, is to placate the administration."
  (Suyash Pazi, 07:36)

• Deregulation Benefits for AI Companies:
  • Noted immediate advantages from deregulatory moves.
  • The current dynamic is more about aligning with the administration than in the past.

  "But the broader culture, I think, is more about agreeing with what the administration is saying more so than administrations in the past."
  (Suyash Pazi, 08:03)

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4. Notable Quotes & Memorable Moments

• On bracketing and its costs:

  “Not knowing which one they're going to want to keep, they'll keep one item and return the other two. Nice for the customer, but for the retailer, those returns add up.”
  (Henry Epp, 01:29)

• On consumer guilt and boycotts:

  “Guilt is external. I did something bad. I made a mistake. Shame is internal. I'm bad. I'm not good at this. I don't understand.”
  (Lindsey Brian Podvin, 04:53)

• On tech and politics:

  "The only way they can get something out of the administration, it seems like at the moment, is to placate the administration."
  (Suyash Pazi, 07:36)

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5. Timestamps for Key Segments

• Return Fees and Bracketing:
  00:55–02:32
• New Boycott Movement and Emotional Impact:
  03:15–05:29
• Tech’s Shift Toward Washington:
  06:22–08:22

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Tone & Language

• Informative, concise, and accessible business reporting
• Conversational Interjections (shopper quotes, street interviews)
• Empathetic when discussing the psychological toll on consumers

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Summary

In under 10 minutes, this episode shines a light on the consumer challenges and business realities facing Americans post-holiday: new return fees altering shopping habits, the emotional complexity of participating in retail boycotts, and big tech’s adaptive strategies in an evolving political climate. Each report employs expert voices and shopper perspectives, delivering thoughtful, up-to-date insights into how personal decisions connect to broader economic and corporate trends.

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Transcript

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[Marketplace Reporter Henry Epp]

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[Marketplace Host Novasafo]

If you're heading out to return some Christmas gifts, stay tuned For Marketplace, I'm novasafo and for Brancaccio. Now that Christmas presents are unwrapped, many of you and you know who you are are going to be heading to stores to return gifts and get what you actually want. But increasingly, retailers are charging for those returns. According to the National Retail Federation, 72% will do so this holiday. Marketplace's Henry Epp explains why.

[Marketplace Reporter Henry Epp]

With online shopping, we've gotten pretty used to the idea that you can return stuff for free, and because of that, a lot of shoppers do this thing called bracketing, says Edgar Dworski, founder of ConsumerWorld.org they will get, let's say, pants three different sizes and colors of pants. Not knowing which one they're going to want to keep, they'll keep one item and return the other two. Nice for the customer, but for the retailer, those returns add up. The postage costs a lot of money. The processing of those returns costs money. So you begin to see some companies saying enough. And they're slapping a fee on returns, especially returns by mail, Dworski says. The risk for companies is that customers don't like being charged fees, says David Sobey, CEO of the logistics company Happy Returns. It may turn shoppers off altogether and have them say, gosh, you know, I'm just not willing to buy from this merchant anymore. One way around this Returning things to a physical store rather than through the mail. That's usually free, sobey says. It's also cheaper for the retailer, and shoppers might be tempted to buy something else while they're in the store. I'm Henry Epp for Marketplace.

[Marketplace Host Novasafo]

Precious metals are having a moment. New record spot prices today for gold, silver and platinum. This is in part because investors are looking ahead to next year and possible interest rate moves at the Federal Reserve. Uncertainty also tends to lift gold prices, which are on track for their biggest annual increase since 1979. A couple of months ago, more than 5 million shoppers embraced the We Ain't Buying it campaign. That's a boycott of three major retailers, Amazon, Home Depot and Target. Usually when we talk boycotts, the focus is on their effect on a company's bottom line. But there's also an impact on shoppers. Rima Krais, host of Marketplaces podcast this is Uncomfortable, takes a look at that aspect of the story.

[Rima Krais]

When I walked the streets of Portland, Oregon, asking people about boycotts, most people mentioned at least one company they've been trying to avoid. McDonald's, Target, pretty good about keeping off.

[Marketplace Host Novasafo]

Amazon, Chick Fil A and Hobby Lobby. I'm definitely avoiding Starbucks.

[Rima Krais]

Why are you boycotting these things? Because I don't like the way that they use their money to influence our politics.

[Suyash Pazi]

I don't support their business practices because they're expensive.

[Rima Krais]

But I also heard people say, I want to boycott, but sometimes I feel like if only I'm contributing to it.

[Suyash Pazi]

Then what change will happen? But I guess that's a sheep mentality.

[Rima Krais]

Financial therapist Lindsey Brian Podvin says she's been hearing similar things from her clients lately. More lots of second guessing.

[Lindsey Brian Podvin]

This anxiety around how do I boycott the right way, how do I do it right? How do I not mess up?

[Rima Krais]

Brian Podvin says consumer boycotts can tap into our underlying anxieties.

[Lindsey Brian Podvin]

This fear of doing it wrong is not just a boycott thing, it is a personal finance thing.

[Rima Krais]

Boycotts can intensify that feeling of self doubt, she says, because they turn everyday purchases into moral decisions, which can lead to decision fatigue.

[Lindsey Brian Podvin]

Like, what do I do if the only diapers I can buy that don't give my baby a rash come from Target? And I'm trying to avoid it, but I can't put my child in something that they have a reaction to, Brian.

[Rima Krais]

Podvin tells her clients. If it's important to you, just do what you can with the time, money and access that you have. Where people tend to get stuck, she says, is when guilt turns into shame.

[Lindsey Brian Podvin]

Guilt and shame are different. Guilt is external. I did something bad. I made a mistake. Shame is internal. I'm bad. I'm not good at this. I don't understand, she says.

[Rima Krais]

Part of what makes boycotts so stressful is that they ask individuals to carry responsibility for solving problems that are actually systemic. But she also says participating in them can have real psychological upsides.

[Lindsey Brian Podvin]

When you have the opportunity to move your dollars in a way that feels better to you and spend and save and invest in alignment with your values general, then you can just feel better about the way that you're using your dollars.

[Rima Krais]

And she says it can be empowering, especially these days when so much feels out of our control. I'm Rima Reis for Marketplace.

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[Marketplace Host Novasafo]

This podcast is supported by Odoo. Some say Odoo business management software is like fertilizer for businesses because the simple, efficient software promotes growth. Others say Odoo is like a magic beanstalk because it scales with you and is magically affordable. And some describe Odoo's programs for manufacturing, accounting, and more as building blocks for creating a custom software suite. So Odoo is fertilizer magic beanstalk building blocks for business Odoo exactly what businesses need. Sign [e-mail] that's o d o o.com Business leaders often ingratiate themselves with those in power in Washington in order to get a better operating environment. But in the first year of Trump 2.0, we saw leaders in the tech industry go out of their way to align themselves with the new administration. Suyash Pazi is research analyst and editor at the nonprofit Human Rights Research Center. He spoke about the phenomenon with our sister program Marketplace Tech.

[Suyash Pazi]

I think the broad consensus is that the tech leaders sort of need to be more agreeable to the government, to the federal government than ever than they have been in the past. Even a couple of months ago, you saw people like Bill Gates having dinner and other tech leaders having dinner with Trump. I believe that was mostly because he wanted to sort of push for some form of rollback on the US Aid cuts. So I think a lot of tech leaders, I think, recognize the only way they can get something out of the administration, it seems like at the moment is to placate the administration. I think for AI companies, though, there has been an immediate benefit. You can see sort of greater deregulation. But the broader culture, I think, is more about agreeing with what the administration is saying more so than administrations in the past.

[Marketplace Host Novasafo]

That was Suyesh Paze of the Human Rights Research Center. You can find the full conversation with [e-mail] I'm Novosafo with the Marketplace Morning Report. From apm American Public Media.

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