9 Tips to Consider When Returning Holiday Gifts

That gorgeous pink sweater that you just knew would be perfect for your BFF? You were right. Because as it turns out, she already has one just like it.

Gift-giving can be a challenge even without considering the possibility of returns, but the last thing you want is for your hard-earned gift money to go to waste. Brands are making it harder to take items back, given the toll that returns take on their profits—to the tune of $816 billion.¹

But that doesn't mean you're stuck with unwanted merchandise and out of that cash. Try these strategies to simplify the return process, whether you're the gift giver or the recipient.

Easy Holiday Returns as The Giver

Many people are starting their holiday gift-buying earlier, which means you might find something that's better suited to the recipient or more affordable as time goes on. But no matter when or what you buy, you'll want your recipient to have the option of an exchange. Try these tips for easier returns.

1. Ask if the return window can be extended for the season

Generous return periods might be a thing of the past. Many retailers have drastically shortened their return window from 60 to 30 days—and some are even shorter, at a mere 14 days.² While many retailers extend their return period for holiday shoppers, it's always wise to verify the specifics and include the return-by date in the gift box.

2. Get a gift receipt

Many stores provide gift receipts, but be sure to ask if they don't. The recipient will appreciate finding a gift receipt in the box in case the item misses the mark or doesn't fit.

3. Keep your receipts in one place

Hanging on to all your receipts can be challenging, so ask for an email receipt instead (it's more eco-friendly, anyway). Then, to avoid overloading your inbox, create a Gmail or other free email account specifically for shopping. It's a handy way to store your receipts, and you can also use that email address to sign up for sales emails and track purchases you make online.

4. Use your credit card

Paying by credit card makes it easier for the store to verify the purchase if you misplace your receipt. The card issuer also may offer purchase protection in case the battery-operated car is a lemon or the strap on that new handbag breaks. Even better, you can earn rewards when you use a cash-back, no-fee credit card.

Easy Holiday Returns as the Giftee

What if you receive boots a size too small or a video game you already own? Here are tips to avoid wasting the gift giver's money, especially if you don't want to ask them for a receipt.

1. Make a game plan for your return

With narrowed return windows, timely returns are key. Prioritize pricier items first so you can get the money ASAP.

To avoid the hassle of visiting a store, you may be able to return the item online or via a third-party return service. Check the brand's policy, but note that it could cost you—41% of retailers charge a return shipping fee.³

If you do need to visit a store to make the return, wait until after December 27. Crowds tend to lessen significantly after the first few days post-holiday. You're also likely to encounter less friction making returns on a weekday rather than a weekend.

2. Keep the tags and all the packaging

Many stores won't accept clothing without the tags intact. This helps them reduce instances of “wardrobing," when inconsiderate shoppers wear an item of clothing for a special occasion and then return it. Retailers also might expect you to have boxes and all outer packaging for certain items, particularly electronics.

3. Bring your ID

Most retailers will ask for identification, and many will note it in their system. They may have a limit on how many “no receipt" returns each person is allowed in a certain period.

4. Plan to accept store credit or an exchange

That's often your only option without a receipt. If the item has since gone on sale, you'll likely have to accept the lower price—even if the gift giver paid the full amount.

5. Rehome the item

When all else fails, you might decide to find someone who can use a gift that wasn't right for you. Try listing it on a resale platform or online marketplace, and make sure to market it as “new with tags" for a potentially higher price. If something is super-cool but just not your style, you can consider regifting it—but proceed with caution. And of course, you can always donate it and get a tax write-off.

“It's the Thought That Counts"

While this is the top adage related to gift-giving and receiving, it's still better when someone opens a gift and says, “It's just what I've always wanted!" But that doesn't always happen. By managing your returns carefully, at least you won't be out the money.

And if you do end up with a windfall, make sure to stash the cash somewhere it can earn even more—like a high yield savings or money market account. Consider opening one today!

LEARN MORE: Synchrony High Yield Savings Accounts