2025-2026 holiday-season returns exceed 10% globally - Digital Commerce 360

Table of Contents

• Understanding the Rise in Holiday Season Returns
• Impact on Delivery and Reverse Logistics
• Sustainability Challenges and Opportunities
• Balancing Consumer Convenience with Operational Efficiency
• FAQ

Understanding the Rise in Holiday Season Returns

Recent data reveals that *returns for holiday-season online orders reached 12.2% globally in early January of 2026*, exceeding previous years' expectations. This rise reflects growing consumer empowerment and evolving shopping behaviors, such as impulsive online purchases during festive seasons.

Retailers and brands are now facing the challenge of managing high return volumes without compromising profitability or customer satisfaction. The trend underscores the need to rethink product descriptions, sizing guides, and customer education to reduce unnecessary returns.

Impact on Delivery and Reverse Logistics

The surge in returns places heavy demands on delivery and reverse logistics networks. Managing these returns efficiently requires robust systems for:

• Rapid inspection and sorting of returned goods
• Optimized transportation routes to minimize costs
• Integration of automated fulfillment centers specialized in processing returns

Advanced tracking technologies and AI-driven logistics platforms like those championed by nVerse can help retailers reduce delay and expense while improving transparency for consumers.

Sustainability Challenges and Opportunities

Returns generate a significant environmental footprint. Transport emissions, repackaging waste, and sometimes product disposal contribute to sustainability concerns for brands.

"Effective reverse logistics not only reduces operational costs but also helps brands adopt circular economy practices."

Solutions include refurbishing and reselling returned products, partnering with recycling firms, and encouraging consumers to consider alternatives to returns such as exchanges or virtual fitting rooms.

Balancing Consumer Convenience with Operational Efficiency

Consumers expect easy and free return policies as part of their online shopping experience, especially during the holiday season. Retailers must strike a balance between convenience and cost control through:

• Clear communication about return windows and conditions
• Streamlined digital return processes with pre-paid labels and local return hubs
• Leveraging AI to predict and reduce potential returns through personalized recommendations

Incorporating these strategies helps retailers maintain customer loyalty without overburdening their infrastructure.

FAQ

Why are holiday-season returns higher than other times of the year?

Holiday shopping often involves gifts bought without direct consumer try-ons, leading to increased returns for sizing or preference reasons.

How can technology improve reverse logistics?

AI-enabled analytics and automation streamline the sorting and routing of returns, reducing time and cost while improving customer updates.

What impact do returns have on sustainability?

Returns increase transportation emissions, packaging waste, and sometimes result in product waste if items cannot be resold or recycled.

What role does consumer education play in managing returns?

Educating customers on sizing, product details, and return policies reduces unnecessary returns and enhances satisfaction.

Source article: Digital Commerce 360 - 2025-2026 Holiday Season Returns