This year saw an 8.5% jump in U.S. holiday sales as consumers spent more money on clothes, jewelry and electronics, according to a report from Mastercard SpendingPulse. To top it off, online shopping surged 11% despite months of supply chain constraints and fears of a Christmas “disaster.” 

Now, holiday gift returns are expected to be higher than ever. Is your business ready to handle the influx? Use these nine steps to review your returns management process:

• Set your goals.

To successfully handle the post-holiday returns rush, you need to begin your returns management process with a clear goal. The ultimate goal for any business during the peak returns season is offering a seamless customer returns experience. Possible objectives may include reducing processing time for returns, mitigating confusions revolving around returns, developing real-time visibility of inventory, improving bottom line, automating repetitive processes and reducing return rates.

• Audit previous holiday returns.

Perform a returns management audit by scrutinizing data from the post-holiday returns of the previous years and reviewing the returns management processes employed previously. Check the current returns handling capacity of your infrastructure. Examine current return policies minutely, analyze customers’ complaints and feedback and take into consideration input from employees.

• Define clear policies.

Ensure every member of your staff is well-versed with the returns process and keep them up-to-date with the latest info on the returns process. Communicate the return process clearly and thoroughly to your customers and design it to answer their most common questions. Don’t forget to keep your customers continuously informed about the status of the returned product.

• Check your operational capabilities.

Ensure your fulfillment center has enough resources to handle a high influx of returns. If not, consider outsourcing your returns management process to reverse logistics.

• Consider additional space.

To deal with the high influx of post-holiday returns, account for additional space to receive, process and store inventory; examine inbound holding capacity, check inventory processing equipment and determine the need for outbound storage capacity.

• Optimize inventory.

Record and process returns promptly and obtain real-time visibility of returned inventory to optimize your inventory control. Furthermore, while processing returns, categorize them as fit for resale, resale with refurbishment and liquidation.

• Manage resources efficiently.

Determine peak season returns management staffing needs by considering your answer to questions that deal with the gaps in your human resource management, difficulty in finding skilled workforce on time, potential increase in demand, customer service areas where there are many complaints and whether you have enough resources to manage peak season returns.

• Offer flexibility.

To maximize customer retention and satisfaction, offer enhanced capabilities such as curbside drop-offs for returns, scheduled returns pick-ups according to customer preferences and multi-channel returns flexibility.

• Follow your successes.

Double down on your holiday returns reports to determine areas for improvement and any gaps in management. Also, consider your answer to questions revolving around the accuracy of your demand forecasts, fulfillment of your goals and objectives, success of your return policies and the effective utilization of space, inventory, human resources and logistics.

Eric Smith is co-founder and chief operating officer of G2 Reverse Logistics.

This year saw an 8.5% jump in U.S. holiday sales as consumers spent more money on clothes, jewelry and electronics, according to a report from Mastercard SpendingPulse. To top it off, online shopping surged 11% despite months of supply chain constraints and fears of a Christmas “disaster.” 

Now, holiday gift returns are expected to be higher than ever. Is your business ready to handle the influx? Use these nine steps to review your returns management process:

• Set your goals.

To successfully handle the post-holiday returns rush, you need to begin your returns management process with a clear goal. The ultimate goal for any business during the peak returns season is offering a seamless customer returns experience. Possible objectives may include reducing processing time for returns, mitigating confusions revolving around returns, developing real-time visibility of inventory, improving bottom line, automating repetitive processes and reducing return rates.

• Audit previous holiday returns.

Perform a returns management audit by scrutinizing data from the post-holiday returns of the previous years and reviewing the returns management processes employed previously. Check the current returns handling capacity of your infrastructure. Examine current return policies minutely, analyze customers’ complaints and feedback and take into consideration input from employees.

• Define clear policies.

Ensure every member of your staff is well-versed with the returns process and keep them up-to-date with the latest info on the returns process. Communicate the return process clearly and thoroughly to your customers and design it to answer their most common questions. Don’t forget to keep your customers continuously informed about the status of the returned product.

• Check your operational capabilities.

Ensure your fulfillment center has enough resources to handle a high influx of returns. If not, consider outsourcing your returns management process to reverse logistics.

• Consider additional space.

To deal with the high influx of post-holiday returns, account for additional space to receive, process and store inventory; examine inbound holding capacity, check inventory processing equipment and determine the need for outbound storage capacity.

• Optimize inventory.

Record and process returns promptly and obtain real-time visibility of returned inventory to optimize your inventory control. Furthermore, while processing returns, categorize them as fit for resale, resale with refurbishment and liquidation.

• Manage resources efficiently.

Determine peak season returns management staffing needs by considering your answer to questions that deal with the gaps in your human resource management, difficulty in finding skilled workforce on time, potential increase in demand, customer service areas where there are many complaints and whether you have enough resources to manage peak season returns.

• Offer flexibility.

To maximize customer retention and satisfaction, offer enhanced capabilities such as curbside drop-offs for returns, scheduled returns pick-ups according to customer preferences and multi-channel returns flexibility.

• Follow your successes.

Double down on your holiday returns reports to determine areas for improvement and any gaps in management. Also, consider your answer to questions revolving around the accuracy of your demand forecasts, fulfillment of your goals and objectives, success of your return policies and the effective utilization of space, inventory, human resources and logistics.

Eric Smith is co-founder and chief operating officer of G2 Reverse Logistics.