Restocking Fee

Posted in Marketing and Strategy Terms, Total Reads: 2199

Definition: Restocking Fee

Restocking fee is amount charged by a retailer for accepting back a sold merchandise. Restocking fee is generally deducted from the refunded amount. It may vary from 10% to as much as 50 %. For consumer durables like laptops or microwaves, restocking fee is charged because the retailer might not be able to sell it as a new product once the package is opened. For other products, it helps the seller to pass on the repackaging, shipping and handling costs.


Usually, a refund is only given when the customer returns a fully functional item. The most widely accepted way to avoid restocking fee is not to open or remove tags from any item that is to be returned. It is very important for the consumer to go through the return policies as restocking fees is generally listed in the return policy of the product. Even when a seller is offering a certain days of return policy, he is entitled to charge a restocking fees to cover the loss on his profit margins. These fees should be in accordance with the laws so that the amount that can be charged on a return should be within limits. Sometimes a retailer decides not to disclose a restocking charge in a return policy, or may try to charge an excessive amount out of the return price. Under such conditions, the customer should consult the local business regulations and laws to find out the legality of such an activity on part of the store.



Best buy charged a 15% restocking fees on all opened notebook computers,

projectors, camcorders, digital cameras, radar detectors, GPS navigation and in-car video systems unless returned defective. A restocking fee of 25% is charged on special order products, including appliances unless defective or prohibited by law.


Hence, this concludes the definition of Restocking Fee along with its overview.


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