News and Updates

[Updated November 13, 2025]

This article has been updated to reflect 2025 return trends, fulfillment strategies, and automation tools for high-volume reverse logistics. It was originally published on December 14, 2023.

Holiday Returns Management: How to Stay Ahead in 2025

Holiday sales may bring in big numbers, but the wave of returns that follows can be just as disruptive. Total returns were projected to reach $890 billion in 2024, and that figure is expected to grow again this year. For warehouses and fulfillment teams, this means one thing: reverse logistics is evolving from a side project to a core operational challenge.

The good news? With the right planning and the right tools, handling holiday returns doesn’t have to wreck your Q1.

The Holiday Returns Spike Isn’t Slowing Down

Online shopping continues to dominate holiday retail, but it brings a higher return rate with it. In categories like apparel, electronics, and gifts, returns can reach up to 30%. Shoppers are starting earlier and buying more than they need, knowing they can return items with minimal friction. And for operations teams, that means unpredictable spikes in inbound volume, often arriving at the worst possible time.

Poor Return Planning Hurts More Than Your Warehouse

Returns do more than clog your docks; they strain your entire fulfillment system. When you’re not ready for the volume, delays stack up fast. Inventory sits unsorted. Resale opportunities shrink. And if your customer return experience is slow or confusing, you risk damaging long-term loyalty at a time when every customer counts.

Beyond operational costs, inefficient returns handling can result in:

• Lower recovery value on returned goods
• Higher labor spend to reprocess inventory
• Reduced inventory visibility and forecasting accuracy

In short, poor reverse logistics planning leaves revenue—and reputation—on the line.

How to Build a Smarter Holiday Returns Strategy

Handling returns effectively in 2025 requires more than extra hands on the floor. It takes smarter systems and scalable workflows designed for flexibility and speed.

Forecast Returns Like You Forecast Sales

Too many teams prepare for outbound volume but underestimate inbound complexity. Look at last year’s return rates by SKU, category, and channel. Use those insights to model labor needs, space requirements, and potential resale windows. And don’t forget to factor in your carrier timelines—returns can keep rolling in well into February.

Need extra labor to manage the post-holiday surge? See how temporary holiday staffing can help you scale quickly.

Designate Space for Returns and Triage

Returns processing shouldn’t fight for space on your main packing line. Create a dedicated area for triage, inspection, and re-inventorying. The fast you sort and route returned goods, the more value you recover. Separating this flow helps reduce slowdowns and gives returned items a chance to re-enter sellable stock while demand is still high.

Support Teams with Automated Tools

Temporary labor can help with volume, but tools like LightSort® and Chameleon® give your team the speed and accuracy they need to keep up.

• LightSort® pick-and-put-to light use light-directed workflows that make training fast and sorting intuitive. Ideal for reveres logistics, it lets temporary staff handle high volumes with minimal ramp-up time.
• Chameleon® SLAM solution offers a modular, adaptable sorting solution that’s perfect for flexible returns processing. It weighs, labels, and scans parcels, reducing touchpoints and bottlenecks.

When combined, these tools streamline sortation and give your team the power to move returns quickly, accurately, and with less training time.

Build Customer Trust with Return Transparency

Holiday returns test more than your operations. Clear communication, prepaid return labels, and simple tracking all make a difference when it comes to your brand. Automating confirmations and refund notices can ease customer frustration and reduce the load on your support teams. The smoother your process, the more likely customers are to shop with you again next season.

Final Thoughts

Returns aren’t a surprise anymore. They’re part of doing business during the holidays, and the most successful companies are the ones that treat reverse logistics as a strategic function versus an afterthought.

With early planning, smart forecasting, and the right technology in place, you can turn your returns process into a competitive advantage. That means fewer headaches in January, more inventory recovered, and customers who come back next year.

For a deeper dive into post-holiday logistics, check out our article on returns season preparedness.