A restocking fee is a percentage of the product price (typically 10-20%) retained by the merchant when processing returns. Fees offset the cost of inspection, cleaning, repackaging, and returning items to inventory. Many merchants waive restocking fees for defective items or first-time returns. Clearly disclosing restocking fees in return policies prevents customer disputes.
← Glossary
Restocking Fee
A charge deducted from customer refunds to cover the cost of processing and inspecting returned items.
Related terms
- Return Policy — The documented rules governing whether and how customers can return products for refunds or exchanges.
- Refund Rate — The percentage of revenue returned to customers through refunds within a given period.
- Return Fraud — Deceptive return practices where customers exploit return policies for financial gain without legitimate cause.
- Customer Satisfaction Score — A metric measuring how satisfied customers are with their purchase and return experience.