Tips for marketplace sellers to master post-holiday returns

The holiday season is the Super Bowl of ecommerce. For many businesses, the final quarter of the year delivers more orders than the previous nine months combined. It’s a whirlwind of packing, shipping, and hustling to meet the holiday demand.

Then January arrives: The sales rush is replaced by a returns surge, and for marketplace sellers, that surge is growing. Return rates rose 41% between November and December 2025 compared to the same period in 2024, and total refund dollars issued in the post-holiday window climbed over 300% year over year. The NRF puts the average online return rate at 19.3% of sales for 2025, and post-holiday return rates can climb into the 40 to 50% range in the weeks immediately following December - more than double what most operations teams budget for. 

Returns aren't just a logistics headache. Handled well, they're one of the highest-leverage moments in the customer journey. Easy returns and refunds rank among the top drivers of consumer trust, alongside responsive customer service and data protection, according to the 2025 NRF and Happy Returns Returns Landscape report. Get this right, and you don't just recover revenue; you also build the kind of loyalty that keeps customers coming back. 

"Consumers expect convenient, hassle-free return options and quick refunds. The retailers and brands which get this part of the customer experience right, report better NPS scores and higher levels of customer loyalty and retention. Around 92% of consumers say that they would buy from a retailer again if the returns process is easy to navigate, so there’s a huge incentive to provide a seamless experience and encourage long-term brand loyalty.”

In this article, we explore how to turn post-holiday returns from a profit-draining challenge into a powerful tool for improved customer retention.

Understanding post-holiday returns: A marketplace perspective

Holiday merchandise is its own category when it comes to returns. NRF data puts holiday return rates at 17% of sales, with some trackers placing the figure closer to 20-25% - well above the annual average. Post-holiday return rates can run 25-40% higher than the annual baseline, putting serious strain on fulfillment operations through January and February.

For marketplace sellers, these returns are often driven by reasons like:

• Mismatched expectations (the sweater in XL wasn’t quite “oversized”)
• Incorrect sizes
• Customers are rethinking impulse buys made during holiday sales.
  

The complexity of ecommerce returns management multiplies on marketplaces. Coordinating returns across multiple vendors becomes a logistical tangle, especially when each seller has its own return policies. Holiday exceptions, like extended return windows, add another layer of difficulty in managing timelines and customer satisfaction.

One prominent example is Amazon’s holiday return policy. Amazon extends its holiday returns period annually, allowing customers to return items bought between November 1st and December 31st until January 31st - a policy that drives confidence at the point of purchase but adds volume downstream.

"Extending the return period boosts customer confidence, encouraging earlier and more frequent holiday purchases. This flexibility is key to driving sales during the busiest shopping season of the year."

Lucas Kuijken
Key Account Manager 

And for cross-border selling, the challenge escalates further. International returns mean navigating customs, currency exchanges, and varying shipping costs, making it harder to streamline processes or offer consistent experiences.

To thrive in this post-holiday maze, marketplace sellers must be proactive, streamlining policies, leveraging data to anticipate trends, and fostering strong vendor relationships for smoother operations.

Building a returns policy for post-holiday success

86% of consumers now prefer no-box, no-label returns with instant refunds - convenience has moved from nice-to-have to baseline expectation. Seven in ten shoppers may abandon a cart when they can't access their preferred delivery and return options, according to DHL's 2026 survey of 29,000 online shoppers across 29 countries.

For marketplace sellers, creating consistent return policies across multiple sales channels ensures a seamless customer experience. Platforms like ours simplify this process, centralizing policies for smooth management across diverse vendors.

ChannelEngine centralizes return policy management across your full channel mix, so you're not manually reconciling policies vendor by vendor. Automation handles returns processing and syncs data with back-end systems, reducing manual effort and keeping inventory accurate when you need it most.

“Despite it being the busiest time of year for retailers, customers still expect the same high level of service, including on-time deliveries, as well as easy returns and fast refunds. A bad customer experience during the holidays could lose a repeat customer and negatively affect any possibility of repeat purchasing in 2025. The peak period is key time to win new shoppers who will spend again next year. It’s crucial to impress them with slick and reliable customer service.

“The best approach to returns policies is to make sure it is clear and transparent, especially as more retailers extend return windows to cover Black Friday purchases for Christmas gifts. Secondly, make the returns process as transparent as possible, with consistent communication about the return status. This will not only improve customer experience, but also decrease the pressure on the customer service team as consumers with sufficient information are less likely to contact the retailer. Similarly, the efficient processing of returns means consumers will get their refund quicker, ensuring their satisfaction, while stock can go back on sale to satisfy demand from other shoppers.

“As returns stretch into January, proactively planning for this surge will boost profitability and improve customer experience in the long run. It could prove the difference in building positive customer experiences and brand loyalty.”

ReBound offers solutions to help retailers implement these strategies effortlessly, delivering both customer satisfaction and operational efficiency. With the right combination of technology and strategy, post-holiday returns can shift from a headache to a growth opportunity.

How to reduce returns before they happen

The most effective returns strategy starts before the customer clicks "buy." Clear, accurate product information reduces mismatched expectations - the leading driver of post-holiday returns.

Turning returns into repeat customers after the holidays

A return doesn't have to mean a lost sale. When a customer returns something, they're still engaged with your brand - that's your opportunity.

Rather than defaulting to a refund, offer store credit or exchanges. Customers who accept store credit are more likely to make a second purchase, and that purchase often exceeds the value of the original transaction. Repeat customers spend 67% more in their third year than in their first six months, so the economics of retention compound quickly.

ChannelEngine's integration tools can analyze return reasons and surface alternative product recommendations tailored to what the customer was actually trying to achieve. Combine that with ReBound's returns expertise, and you have a post-purchase experience that builds trust rather than eroding it.

The goal isn't to minimize returns. It's to maximize what happens next.

Master post-holiday returns with the right tools

Post-holiday returns are predictable. The volume, the timing, the pressure on operations - none of it should come as a surprise in this era of tooling. What separates high-performing marketplace sellers is preparation: Clear policies, automated processes, and a returns experience that leaves customers confident enough to buy from you again.