How to Manage Post Holiday Returns

Holiday returns are a certainty where every January, brands brace for a flood of returns, exchanges and refunds. 

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The season that drives record sales also brings one of the highest operational burdens of the year.

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But it doesn’t have to. Holiday returns can build trust, increase retention and increase post sale revenue.

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By investing in ecommerce returns solutions, brands can learn how to prepare, streamline and optimize your returns process for the seasonal surge.

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Why Returns Surge After the Holidays

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The math is very simple, the more purchase the increased likelihood there will be more returns. In 2023, U.S. customers returned $743 billion worth of merchandise, accounting for 14.5% of total retail sales. 

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Holiday sales returns make up a significant share of this figure, driven by gifting mismatches, sizing issues, and duplicate purchases. 

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This impacts the internal ecommerce operations of brands, affects restocking timelines, and influences future buying behavior.

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Current challenges of Post Holiday Returns

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‍Return Fraud

Holidays are a prime time for fraudulent return behavior such as wardrobing, empty box returns or swapping out items. 

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Inconsistent Returns Policies

Unclear return policies can make customers confused, this can lead to more disputes, lower satisfaction and results in revenue loss from unnecessary refunds. 

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Limited Returns Infrastructure

Many ecommerce brands aren’t built to handle the scale of holiday returns leading to delayed restocking and poor visibility for customers during the returns process. 

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Best Practices for Handling Post Holiday Returns

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The best returns are the ones that never happened.

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We’ve provided a range of activities to support ecommerce brands to reduce their return rate and increase customer retention.

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Prep Early with Clear Holiday Return Policies

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Set expectations before the peak hits.

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Consumers shop earlier than ever in Q4, so it’s important to clarify your return terms and conditions upfront that is clearly signposted:

• Extend return windows: allow returns until January 31 for orders placed in November and December
• Place policies on PDPs (product detail pages), in checkout, and in post purchase emails

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This will help to prevent customer confusion and reduce post holiday questions and emails to your customer service teams.

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Extended Return Period

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A common practice during the post holiday period is to allow returns until January for orders placed in November or December. 

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This accommodates gift giving timelines and makes customers feel confident about purchasing gifts earlier reducing panic around return deadlines. 

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The additional flexibility can encourage higher conversion rates during peak sales periods during Black Friday and Cyber Monday while spreading out return volumes into a more manageable timeline for operations teams.

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Clear and Transparent Return Policy

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Avoid vague or hidden terms, customers value straightforward policies that are easy to find and understand. 

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This will ensure your brand avoids shoppers feeling unsure about the returns process, especially during the peak holiday period.

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Be explicit about what can be returned, in what condition, and how long it takes to process a refund or exchange. 

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Customers respond positively to this during the checkout process and appreciate clear information on returns, timelines, shipping methods if the refund will be in store credit or original payment.

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Transparency not only reduces customer support load but also drives consumer confidence.

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Protect Your Business from Return Fraud

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Post-holiday returns attract increased fraud, including claims involving worn or used items, or even substituted goods. 

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Ecommerce brands consider adopting an ecommerce returns platform that validates return reasons, track return history, and flag unusual behaviours to reduce your exposure to losses.

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In addition to this, ensure your returns policy clearly includes terms & conditions that discourage misuse, such as restocking fees or thresholds for return frequency.

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Strengthen Your Returns Operations

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Ecommerce brands need to be ready for high return volumes after Christmas and

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This means ecommerce brands need to automate where possible, ensure warehouse teams are prepared and optimize your reverse logistics so returned items are restocked quickly. 

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By optimizing operations, it improves efficiency and could reduce the refund timeline which increases customer confidence and makes it easier to resell returned inventory. 

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How Swap Commerce Can Simplify the Post Holiday Returns Process

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Swap Commerce provides ecommerce brands a unified commerce platform that transforms the post-holiday return surge into a seamless and profitable experience. 

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Instead of Juggling multiple tech partners, Swap returns, refunds, and exchanges into a single, intuitive interface. 

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We provide customers and give support teams into every return case to increase operational efficiency and consistency across the brand.

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With early preparation, transparent policies, and adopting the right technology, ecommerce  brands can reduce return rates, streamline operations, and improve loyalty well into the new year. 

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Ready to join the flock? Book a demo today!