Holiday shopping ahead: What can trip you up in 2022
Roughly two weeks before the turkey hits the table, I'd like to disclose that most of my holiday shopping is done. Not bragging, mind you. But plenty of gifts are already bought and, yes, many even wrapped and shipped off to family and friends who live outside of Michigan.
Sure, my gift giving work isn't finished. I'll need to dig through the gift closet for presents for those who live closer to home. And yes, I still will be shopping. Anyone who knows me knows I will be shopping, just maybe not as much as some this holiday season.
And, if the retailers are right, it could very well be a busy season for shoppers. Higher prices, inflation, a wobbly stock market and fears of a recession in 2023 all triggered a great deal of financial anxiety.
But if forecasts are accurate, good luck finding a parking spot on Black Friday.
Holiday sales are expected to grow anywhere from 6% to possibly as high as 8%, according to the National Retail Federation, which tends to be optimistic about such things.
Deloitte's holiday forecast calls for sales gains around 4% to 6% during November to January — which is down significantly from 15.1% from the same period last year.
Holiday sales exploded last year when consumers had more cash on hand, felt less stressed about COVID-19 health risks after being vaccinated and made up for lost trips and time in 2020. Holiday retail sales have averaged an increase of 4.9% over the past 10 years, according to the National Retail Federation, with pandemic spending contributing to significant gains.
All that said, it could still be touch-and-go for shoppers as they're dealing with higher prices — which will boost dollar sales — and some tougher return policies. Even the weather, experts say, can impact spending. Here's what to know, as the holiday shopping rush begins for many:
Some unhappy, more costly returns
Keep a keen eye out for some extra fees and less generous return deadlines that are designed to cut down on all the nonstop returns that many online shoppers make.
The deals and discounts are plastered all over catalogs, websites and store windows. But you might have to dig a bit to find out about some return policies and fees.
L.L. Bean, for example, has a $6.50 fee for returns and exchanges made through UPS or the U.S. mail.
While the return fee can be spotted online, I'm looking at an L.L. Bean catalog that just came in the mail in early November that promotes "Free Shipping with $50 purchase" and 15% off my order through Dec. 18 but does not list this return fee that's been getting some media attention.
You could avoid that fee if you return the item at an L.L. Bean store but you'd want to see how close one might be to you. Michigan has one L.L. Bean Store listed in Clinton Township at The Mall at Partridge Creek. And returns and exchanges are free if you used an L.L. Bean Mastercard or paid entirely using Bean Bucks, according to the website.
Retailers expected 17.8% — or an estimated $158 billion — of merchandise sold during the 2021 holiday shopping season to be returned, according to the National Retail Federation's earlier data. New estimates for 2022 are to be released later this year.
Online orders, not surprisingly, have higher odds that they'll be returned. As people order more online, retailers are seeing more returns.
Retailers aren't only dealing with bad gift ideas or wrong sizes — they're also combating theft and fraud. For every $100 in returned merchandise accepted, retailers lose $10.30 to return fraud, such as shoplifting, according to the retail industry group.
Many times, consumers can avoid return fees by returning the item to a bricks-and-mortar store. Or you can hustle and quickly return something bought online within a specific time frame required by that retailer.
Saks Fifth Avenue, for example, notes online that a $9.95 return charge would be deducted from your refund if you bought the item online but the return isn't initiated within 14 days of the ship date or you don't return the item to a Saks Fifth Avenue store.
Grinchy gift scams
Local police departments are once again urging online shoppers to team up with neighbors to thwart the porch pirates. Advice includes picking up packages at a secure location, tracking deliveries, selecting a "signature required" option at checkout if possible, and even considering outside security, such as installing doorbell cameras.
Some shoppers might opt to get an item delivered to the retailer's store for pickup, instead of the front porch.
Being on edge about package delivery, of course, only opens the door for scammers who are texting and impersonating UPS or the U.S. Postal Service with statements like: “The delivery of the package has stopped because your shipping address does not match the street information.”
Sometimes, you're wondering: "What package? Did someone just send me something?"
Do not click on any of the so-called tracking links to update information. Do not make any phone calls to the numbers given in the these oddball texts.
One delivery scam even involves someone actually putting a fake "missed delivery" tag on your door, according to a warning from the Better Business Bureau. The note might claim there's a problem getting a package to you. The BBB warns that you could be asked to call a phone number to reschedule your delivery but this is just another way for scammers to trick you into handing over your personal information.
While legitimate companies do leave door tags at times, make sure to do a little research on how that process actually works. FedEx, for example, has a bar code that can be scanned using a FedEx mobile app to track the package and get delivery options.
Shoppers want to avoid calling the phone numbers listed in these odd texts, including texts that claim that someone has just made a huge purchase using your Amazon account. You might panic if you received what looks like an invoice for a purchase that you didn't make.
More:2 Michigan women tricked by convincing, sophisticated Amazon scam: What to know
If you call one of these numbers in a phony text, you could be encouraged to install remote access tools on your computer to resolve the issue. Or you might end up handing over banking information in some way or being told to buy gift cards to fix a problem.
Extra-extra high costs of credit
One of the worst moves to make this holiday shopping season is to charge a great deal on a store-issued credit card — and not pay that bill in full. Many retailer cards carry interest rates of 29.99%.
The average annual percentage rate for a retail credit card hit a record high of 26.72%, up from 24.35% last year, according to a new study by CreditCards.com. The average APR for a general-purpose credit card sits at 22.66%, according to data released Nov. 7.
Many credit cards can charge exceptionally high APRs because card issuers tend to set up shop in states that don’t cap rates, such as Delaware, South Dakota and Utah, according to Ted Rossman, senior industry analyst for CreditCards.com and Bankrate.com.
Say you charged $1,000 on a card with a 29.99% rate. If you only made the minimum payment, you'd be in debt for 51 months or more than four years. And you'd end up paying $775 in interest, Rossman noted.
Many consumers are turning to credit cards as they're dealing with higher prices and, in some cases, fewer hours at work or even layoffs.
Revolving credit increased at an annual rate of 12.9% in the third quarter, according to the latest data from the Federal Reserve.
Consumers want to pay close attention to the terms of some 0% promotions offered at various stores, too, which can end up being "deferred interest." If you fail to pay the full balance before the 0% promotion ends on these deals, Rossman said, you're going to be stuck paying interest at a high rate retroactively from the very beginning.
More:Fed hikes interest rate again by 75 basis points as inflation refuses to cool
Some consumers could pay these high rates — if they don't pay off their balance in full each month — and possibly face a surcharge when they're at some stores or small restaurants.
I've run into the issue at a few restaurants and kiosks at local art fairs in the past year. You might be charged 3% or 4% extra to use your credit card instead of paying with cash. Polonia Restaurant in Hamtramck, for example, charges a 4% fee for processing a credit card.
Surcharges are legal on credit card purchases in all states, except Connecticut, Maine, Massachusetts, and Oklahoma; they are never allowed on a debit or pre-paid card purchase, said Jeff Tassey, chairman for the Electronic Payments Coalition, in a statement. The coalition represents credit unions, community banks, payment card networks, and institutions who support electronic payments.
If you're heading to a restaurant, check the menu online for any notice of a credit card processing fee. You should be told in advance of the surcharge but it does not hurt to ask, either. Typically, I've dug in my wallet and fortunately found enough cash to avoid any extra fees.
Contact Susan Tompor: stompor@freepress.com. Follow her on Twitter @tompor. To subscribe, please go to freep.com/specialoffer.
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This article originally appeared on Detroit Free Press: Holiday shopping: What fees and deals can trip you up in 2022
