Simplifying Holiday Shipping Returns: Ultimate Guide

The holiday season consistently drives a surge in eCommerce sales, accompanied by a significant increase in product returns. In 2023, U.S. holiday retail sales reached a record $964.4 billion, marking a 3.8% increase from the previous year. However, this consumer spending spree also led to a substantial volume of returns, with projections indicating that holiday returns could amount to $160 billion, approximately 16% of total holiday retail sales.

Managing these returns effectively is crucial for eCommerce businesses aiming to retain customers and maintain profitability during this busy period. A well-structured return process not only minimizes logistical challenges but also enhances customer trust, fostering repeat purchases. Notably, research indicates that 60% of shoppers would cease purchasing from retailers if charged a return fee, underscoring the importance of flexible return policies.

Therefore, implementing customer-friendly return policies is essential for sustaining customer loyalty and satisfaction during the holiday season.

From clear and transparent return policies to cost-saving strategies, businesses can transform the post-holiday returns season into an opportunity to build loyalty. Whether it’s extending return windows, automating workflows, or offering prepaid return labels, the right approach can turn a potentially stressful process into a seamless experience for both customers and businesses.

Platforms like Easyship help businesses manage holiday returns with ease. The all-in-one platform offers tools like prepaid return labels, automated tracking, and access to discounted courier rates, empowering eCommerce businesses to handle high return volumes effortlessly. 

That said, this guide will walk you through creating a customer-friendly, cost-effective return process while managing post-holiday logistics efficiently.

Why Transparent Return Policies Build Trust

A clear, customer-friendly return policy is the foundation of successful holiday shipping returns. Customers often check return policies before making a purchase, and a well-written policy can make or break their decision to buy. It is especially important to understand the return policy for final sale items, as these are non-returnable by definition and can impact gift purchases.

Key Considerations for a Transparent Policy

• Simplicity: Avoid complex jargon. Use clear, concise language to outline steps for returns.
• Visibility: Place your return policy prominently on your website. Include it on product pages, FAQs, and in post-purchase emails.
• Fairness: Extend return windows during the holiday season to accommodate early shoppers and gift recipients.
• Examples from Major Retailers: Major retailers such as Walmart, Target, and Costco launch their Black Friday and Boxing Day deals early and offer generous return policies during the holiday season. Highlighting how these major retailers handle returns can provide a benchmark for your own policy.

Notably, Amazon has a policy where the returns window is extended during this peak shopping season. This is useful for customers who start shopping ahead of time during the holiday season.

Tips for Optimizing the Returns Workflow

Handling high volumes of holiday shipping returns can overwhelm businesses without an efficient system in place. Here are actionable tips for streamlining the process. Consider using express shipping as an option for handling returns quickly.

Centralized Returns Management

• Use a single platform to manage all returns, integrating with couriers and tracking systems.
• Automate tasks like generating return labels and updating customers on return statuses.
• Utilize a local store or warehouse for handling returns, offering customers the convenience of returning items without shipping costs and the possibility of same-day resolution.

Offer Prepaid Return Labels and Free Return Shipping

• Prepaid labels simplify returns for customers and ensure consistency in your logistics process.
• Platforms like Easyship let you create prepaid labels while only charging you when the label is scanned. Additionally, offering free standard shipping can serve as a great incentive for customers.

Example Workflow

1. Locate the order in your platform and select the return option.
2. Generate a prepaid return label and email it to the customer with clear instructions.
3. Track the return package in real time to ensure smooth processing.
4. Inspect the returned item upon arrival and process the refund or exchange.

Managing Costs in Holiday Returns

Holiday returns can be costly, but there are ways to manage expenses without compromising customer satisfaction. It's important to consider potential costs such as a restocking fee or restocking fees, which some retailers charge for high-end or open-box products.

Use Affordable Couriers

Compare courier rates to find the most cost-effective options for returns. Multi-carrier platforms like Easyship provide access to discounted rates for over 550 courier services.

Encourage Store Credit or Exchanges

Instead of refunds, offer incentives like store credit or discounts on future purchases. This retains revenue and encourages repeat business.

Monitor Return Data

Analyze return trends to identify costly patterns, like frequent returns of specific items. Use this data to adjust product descriptions, sizing charts, or customer communication.

Regional Insights: US vs. UK and Australia

Return trends vary by region, and understanding these differences can help businesses adapt. Additionally, third-party sellers often have their own return policies, which can differ significantly from the platform's policies, impacting the consumer's experience.

United States

• Holiday return windows often extend through January to accommodate gift recipients.
• Free return shipping is a priority for many shoppers, influencing their purchase decisions.

United Kingdom & Australia

• Returns surge around Boxing Day, creating a concentrated period of high volume.
• Customers often prefer in-store returns, highlighting the importance of offering both online and in-store return options.

Australians have begun starting their holiday shopping earlier than ever. According to new Shopify research, 53% plan to finalize their shopping lists by October, and 58% aim to complete most of their shopping by November. This trend is even stronger among households with children, where 70% finalize lists by October, and 68% finish the bulk of their shopping by November.

Adapting Your Strategy

If your customer base spans multiple regions, tailor your return policies to align with local shopping and returning behaviors. For example, extend return windows in the US while bolstering in-store return options in Australia and the UK.

How Easyship Simplifies Holiday Shipping Returns

Easyship offers tools designed to simplify returns for both businesses and customers. These features reduce the complexity of managing post-holiday logistics and improve customer satisfaction. Additionally, Easyship helps manage shipping fees by providing solutions to reduce or waive them based on specific conditions.

Prepaid Return Labels

• Generate prepaid labels at the same time as outbound shipping labels.
• Only pay when the label is scanned, keeping costs manageable.

Automated Tracking

• Provide customers with real-time updates on their return status.
• Use Easyship’s dashboard to monitor all returns in one place.
• Pre-paid returns labels to process eCommerce returns very quickly.

Flexible Carrier Options

• Access over 550 courier services to find the best rates for your return shipments.
• Leverage Easyship’s discounted rates to reduce costs further.

Example

A WooCommerce store integrates Easyship to handle a surge in January returns. By using prepaid labels and automated tracking, they cut processing time by 40% and improved customer reviews.

Turning Holiday Returns Into Future Sales

A well-executed return process doesn’t just resolve an issue—it builds customer loyalty and opens doors for future sales. Electronics and entertainment items, in particular, often come with specific return challenges that need to be addressed during the holiday season.

Best Practices

• Include a discount code or store credit with every return to encourage future purchases.
• Use the returns process to highlight your commitment to excellent customer service.
• Follow up with post-return surveys to gather feedback and improve.

Conclusion

Holiday shipping returns don’t have to be a headache. By creating a transparent return policy, optimizing workflows, and leveraging tools like Easyship, you can turn returns into an opportunity to strengthen your customer relationships and drive future growth. Simplify your returns this holiday season with Easyship. Sign up today and manage post-holiday returns effortlessly while saving time and money.

Ready to simplify and save on shipping?

Easyship is here to help.

Easyship was built to simplify shipping for eCommerce sellers of every size. If you’re looking for ways to save on shipping costs, compare rates, automate fulfillment, or grow internationally—our free shipping tools and smart dashboard can save you hours daily.

Our most popular App features:

• Discounted Shipping Rates: Get instant access to the largest selection of pre-negotiated volume discounts on shipping labels (up to 91% off retail rates).
• Multi-Carrier Comparison: Effortlessly compare 550+ global courier services to find the best option with our intelligent courier selection algorithm.
• Simple Set-Up & Integration: Connect your store and sales channels to Easyship in minutes to automatically sync orders and manage all shipments in one dashboard.
• Instant Rates At Checkout: Increase conversions by showcasing the cheapest, fastest and best value shipping rates live at checkout.
• Automatic Tax & Duties: Calculate, pre-pay, or pass on all tax and duty obligations for international orders, including generating all relevant customs paperwork.
• Shipping Automation Rules: Streamline shipping workflows, bulk print labels and reduce manual pick and pack errors with simple automation rules.
• Branded Tracking & Returns: Deliver a superior customer experience from checkout to delivery with branded tracking updates, delivery status, and pre-paid return labels.
• Shipping Insurance: Protect your brand and reputation from parcel theft, loss, or damage with affordable insurance options for domestic and international shipments.
  
  

More free shipping tools:

• Shipping Rate Calculator: Compare and calculate the cheapest way to ship anything to anywhere with our shipping cost calculator for international and domestic.
• Tax & Duties Calculator: Create an estimate of your customs duties and import taxes for every country and retail category.
• Country Import Rules: Understand the individual import rules, requirements, and restrictions for every country with our helpful guides.
• HS Code Lookup Tool: Search for the correct HS/HST Code for international orders with our universal HS Code Lookup Tool.
• Shipping Policy Generator: A clear and enticing shipping policy is a sales tool for stores, setting clear expectations and building trust with prospective customers.
  
  

Join our community of eCommerce sellers and get started with Easyship for free today.

Holiday Shipping Returns FAQs

What makes a return policy customer-friendly?

A customer-friendly return policy is clear, concise, and visible. It outlines simple steps for initiating a return and includes extended windows for holiday returns. Providing prepaid return labels and free return shipping options can also improve customer satisfaction and encourage repeat business.

How can I reduce costs during the holiday returns season?

To minimize costs, compare courier rates for affordable shipping, encourage store credit or exchanges over refunds, and analyze return trends to address common issues. Platforms like Easyship help reduce return expenses with pre-negotiated rates and automated workflows.

How does Easyship simplify holiday returns for my business?

Easyship streamlines holiday returns by offering prepaid return labels, real-time tracking, and discounted courier rates. These tools help eCommerce businesses manage high return volumes efficiently while enhancing the customer experience.

Can I use Easyship to offer free return shipping?

Yes, Easyship lets you provide prepaid return labels that only charge when scanned. This allows you to offer free return shipping strategically, reducing costs while improving customer satisfaction during the holiday season.

Does Easyship work with multiple eCommerce platforms?

Absolutely. Easyship integrates seamlessly with Shopify, WooCommerce, eBay, Amazon, and more, allowing you to sync orders, manage returns, and streamline shipping processes from one dashboard. This makes it ideal for small-to-medium-sized eCommerce stores.