Peak season returns: How to prepare, process and profit
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Posted: Mon 20th Jan 2025
The peak season sales rush is over. Now comes the returns storm.
The holiday shopping frenzy may be behind you – but returns season is just getting started.
In fact, up to 30% of all holiday purchases are returned, according to industry estimates. For e-commerce brands, this can mean logistical headaches, overrunning costs and frustrated customers – unless you're ready.
This guide will help you create a bulletproof plan handling returns during peak periods, while protecting profit margins and building customer loyalty.
Quick summary
Dealing with peak season returns is crucial to keeping customers satisfied and protecting your bottom line. Here's a fast rundown of what you need to do:
Identify your key return periods (for example, Take Back Monday, Boxing Day, Cyber Monday).
Document your returns process and train your team.
Set KPIs to measure efficiency and customer satisfaction.
Offer easy and flexible return options.
Communicate shipping deadlines to reduce late-delivery returns.
What are peak season returns?
Peak season returns are the high volume of returns you have to process either during, or immediately after, your busiest sales periods.
Your peak return season will vary depending on your industry:
Electronics brands see a spike after Black Friday and Cyber Monday.
Fashion or clothing retailers deal with returns throughout the holidays and changes in seasons.
Beauty and wellness brands may see higher return volumes around Valentine's Day or Singles' Day.
Why are peak season returns important?
Returns matter – to both your brand's reputation and your bottom line. As such, you must take your peak season returns seriously.
First, there's the cost to think about. In the UK, it's been estimated that returned items cost retailers £60 billion every year. Get your peak season returns strategy wrong and it could cost you dearly.
Second, customers expect retailers to handle returns quickly and accurately. If you give customers a negative experience, you could lose repeat business, suffer damage to your reputation, and more.
To put this into context, a UPS survey found that 73% of consumers will only purchase from a retailer again if they have a good experience with returning something they've bought.
Like we said, returns matter!
What are the big peak season return dates to plan for?
With that in mind, what are the most common peak returns dates? Let's take a look:
Take Back Monday: Usually falling on the first working Monday following Christmas and New Year, this is the day on which most post-festive season returns occur.
Singles' Day: If you sell into the Chinese market, you'll need to plan for a flurry of potential returns following Singles' Day. This takes place on 11 November each year and is China's premier e-commerce sales event.
Black Friday: Typically taking place on the fourth Friday of November (unless 1 November is a Friday), this day marks the start of the Christmas shopping season. For many retailers, it's also when their peak season returns kick off.
Cyber Monday: An online-focused sales event that falls on the Monday immediately after Black Friday. Combined with Black Friday, Cyber Monday will normally generate a significant volume of returns for many retailers.
Free Shipping Day: Although not as widely known as some of the other dates on this list, Free Shipping Day is growing ever more popular, with more and more retailers offering free shipping during mid-December. As you'd expect, for many businesses, the offer of free shipping has a big impact on the rate of product returns.
Boxing Day Sales: From 26 December each year, many retailers push their sales and discounting efforts into overdrive. As a natural consequence, these sales then drive a higher volume of returns.
As we mentioned earlier, the degree to which these dates will affect your peak season returns will very much depend on your individual brand.
Nevertheless, the key point is this: to handle your peak season returns effectively, you must identify those dates you think will generate the most returns for your business.
How to get ready for peak season returns
Now you understand what peak season returns are, why they matter and the key dates those returns will happen for you, here's what you can do to put yourself in the best possible position to handle them when your busiest times occur.
1. Create a documented returns process
You'd be surprised at how many brands lack a systematic, written-down process for assessing and processing returns. But you won't be shocked at the huge amount of difference such a process can make!
Create your own solid returns policy that's well thought-out and based on real-world data. Include how you'll:
accept and authorise returns
inspect for quality
restock, refurbish or dispose of returned items
process refunds or exchanges
log data and track performance
2. Set KPIs so you can handle returns efficiently
It isn't enough to simply have a returns process in place. You should also look to continually improve it by setting key performance indicators (KPIs) for your customer service teams or those staff who are responsible for handling returns.
As an example, these KPIs could cover the following areas:
Return intake: How quickly and accurately are you processing returns?
Quality control and restocking: How well are you assessing returns when you receive them? How do you then process and restock them, or dispose of them?
Peak times: Monitor the number and type of returns throughout each month and use this data to refine your returns process.
3. Make returns as easy as possible for customers
A frictionless return process can drive repeat purchases. Here's how to simplify things for your customers:
Set up a self-service online returns portal where customers can request a return. They don't want to be sitting on hold on a phone for ages!
Likewise, include pre-completed return labels in each of your product packages so customers don't have shipping costs to worry about.
Offer automated updates via email or text message.
Write a clear, visible return policy with no small print.
4. Offer a variety of returns options
The modern shopper expects flexibility, so go beyond the basic shipping label.
Where possible, try and offer other returns options, such as the opportunity to return items:
in store (if you have bricks-and-mortar stores)
to drop-off points (many couriers now offer this as a service)
5. Limit returns caused by late deliveries
While you want to offer as many returns options as possible, there's one important thing to consider when it comes to peak season returns – late deliveries.
Where possible, include cut-off dates on product descriptions (for example, "To receive this product by Christmas, you need to order by this date").
To calculate your cut-off dates, you should be regularly speaking to your courier.
If you're particularly concerned about having to deal with returns caused by late deliveries, add some additional 'buffer' days to the cut-off dates your couriers give you.
Final thoughts: Make returns a competitive advantage
Peak season returns may be something you can't avoid, but with the right strategy, they can work in your favour.
By planning ahead, simplifying your processes and prioritising the customer experience, returns can become a powerful tool for building customer loyalty and keeping your profit margins healthy.
Remember: how you handle returns says just as much about your brand as how you make a sale.
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