A restocking fee is a charge a seller keeps from a return refund to cover the cost of putting the item back into sellable inventory. It usually runs 10% to 25% of the item’s price, with 15% the most common rate in general retail. If a store charges one, it must disclose the fee in the return policy before the sale.

Restocking fees exist because a returned item is rarely worth its full sale price by the time it lands back in the warehouse. Sealed inventory can go straight back on the shelf; opened, worn, or partially used goods lose value and eat into margin. This guide walks through the standard rates by industry, worked examples for the most common percentages, when a restocking fee is legally allowed, and how to set one that customers will actually accept.

Standard Restocking Fee Percentages by Industry

There is no single legal rate. Sellers set their own restocking fees, but categories cluster around predictable ranges based on how much the item’s resale value drops once the box is opened.

Industry Typical Restocking Fee Why
Electronics / open-box 15% to 25% Opened packaging drops resale value sharply; item now sells as “used” or “refurbished”
Furniture / large items 15% to 20% Handling, freight, and reinspection eat into margin
Fashion / apparel 0% to 10% Standard practice is free returns; competitive pressure keeps fees low or absent
Beauty / personal care 15% or non-returnable Opened items usually cannot be resold at all for hygiene reasons
Wholesale / B2B 15% to 30% Larger order sizes; buyers accept restocking fees as standard trade practice
Books & media 10% to 15% Low margin on the item plus damage risk in transit
Custom or made-to-order Often non-returnable, or 25%+ The item cannot be resold to another customer at any price

Two rates cover most everyday transactions. A 15% restocking fee is the most common general-retail figure and covers the typical cost of returns processing on a moderately priced item. A 20% fee is more common in consumer electronics, where a sealed box carries a meaningful premium over an opened one.

Restocking Fee Examples: What You’d Actually Owe

The fee is a straight percentage of the item’s price (not shipping, not tax). Here is what the four most common percentages come out to on typical order values.

Item Price 10% Fee 15% Fee 20% Fee 25% Fee
$50 $5.00 $7.50 $10.00 $12.50
$100 $10.00 $15.00 $20.00 $25.00
$250 $25.00 $37.50 $50.00 $62.50
$500 $50.00 $75.00 $100.00 $125.00
$1,000 $100.00 $150.00 $200.00 $250.00

Worked example. A shopper buys a $250 fitness tracker, opens the box, decides they would rather have a different model, and returns it within the seller’s 30-day window. If the store’s return policy states a 15% restocking fee, the shopper receives $212.50 back on the item and the seller keeps $37.50 to cover repackaging, quality inspection, and the drop in resale value now that the box is open. Original shipping costs are handled separately and vary by store.

Want to check your own number against a specific price and percentage? Our restocking fee calculator runs the math for any combination.

Are Restocking Fees Legal?

In the United States and most other jurisdictions, restocking fees are legal as long as the seller discloses them in advance. The rule is straightforward: the customer needs to know the fee exists before they pay, so the disclosure has to appear in the return policy the customer can see on the product page or at checkout.

Three situations where a restocking fee is not enforceable, even with disclosure:

  • The item arrived defective or damaged. A shopper cannot be charged a fee for returning an item that was broken on delivery. The seller absorbs both the return and any restocking cost.
  • The item was misdescribed. If the product page said one thing and the shopper received another, the return is on the seller and no fee applies.
  • The seller shipped the wrong item. Fulfillment errors sit with the seller, not the shopper.

Several US states have added consumer disclosure rules on top of federal FTC guidance, so a Shopify store shipping nationwide should make its restocking policy visible and specific rather than hidden in fine print. The safe pattern is one line on the product page linking to a return policy that spells out the fee percentage and the exceptions above.

How to Set a Fair Restocking Fee

The point of a restocking fee is to recover the cost a return actually creates, not to punish returns or scare off conversion. Fees that feel arbitrary drive one-star reviews and chargebacks; fees that match category norms rarely get pushed back on.

  • Match your category’s typical rate. If you sell electronics, a 15% to 20% fee reads as standard. If you sell fashion, anything above 10% feels punitive against the free-returns backdrop.
  • Waive it for defects, damage, and your own errors. Every serious return policy carves these out. Not carving them out gets you into consumer-protection trouble and sinks trust scores.
  • State the fee in dollar terms at the point of return. “You will be refunded $212.50 of the $250 purchase price” lands better than “a 15% restocking fee applies.”
  • Consider a tiered structure. Zero within 7 days, 15% after that, higher for opened items. Rewards fast returns of undamaged stock and discourages the returns that actually cost you.
  • Refund shipping when the return is on you. Shipping costs should follow the same fault logic as the restocking fee itself.

Restocking Fee vs Return Shipping vs Handling Fee

Three charges show up around returns and they are not the same thing. Getting them right in your return policy avoids most disputes before they start.

  • Restocking fee is a percentage of the item price, kept from the refund to cover the resale-value drop and processing labor.
  • Return shipping fee is what it costs to send the item back. Usually paid by the customer unless the return is the seller’s fault.
  • Handling fee is a flat charge some sellers add at purchase or return to cover packaging, insurance, or admin. Separate from the restocking fee, though the two get confused.

When to Skip a Restocking Fee

Not every store should charge one. If your average order value is low and your returns rate is already manageable, a restocking fee can cost you more in lost conversion than it saves in returns processing. Free returns is a strong conversion lever in fashion, beauty, and low-ticket categories, and shoppers weigh return policy heavily before adding to cart.

The cases where a restocking fee earns its keep are higher-ticket items, categories where opened boxes lose real resale value, and stores where returns processing is a meaningful line in the P&L rather than a rounding error.

Run Your Own Restocking Fee Number

Once you know the percentage you want to charge or the fee your seller is quoting, work out the actual dollar amount with our restocking fee calculator. Enter the item price and the percentage; it returns the refund and the fee in one calculation.