The holiday season may bring record-breaking sales, but what follows can be just as intense: returns season. For many eCommerce operations, January and February see return rates spike as high as 20–30% of total holiday volume. Unlike outbound shipping, reverse logistics introduces more complexity, variability, and labor drag.
Returns season 2026 might seem far off, but operations managers who start preparing now will be better equipped to handle the post-peak influx efficiently, without blowing their budgets or slowing down warehouse operations. Here’s how to plan ahead and execute with precision.
Forecast Returns Volume Using Historical and Real-Time Data
You can’t manage what you don’t measure. Returns forecasting should start in Q3 and be built off historical sales data, SKU-specific return rates, and the current year’s peak season projections. If you’re launching new products or marketing heavily, adjust your forecast to account for first-time buyer behavior, which often drives up returns.
Smart forecasting allows you to plan labor, space, and material needs (like packaging and bins) specifically for returns, rather than scrambling in January.
Build a Dedicated Returns Workflow
One of the biggest mistakes is funneling returns through the same intake lanes and staff used for inbound stock. Returns require different handling — inspections, sorting, repackaging, and sometimes product testing.
Create a separate physical area in the warehouse for returns processing. Set up clear SOPs:
- Is the item going back to inventory?
- Does it need to be refurbished or quarantined?
- Should it be routed for donation, resale, or disposal?
This separation reduces congestion and enables faster turnaround.
Cross-Train Your Workforce and Use Flex Teams
Returns season hits during a time when outbound slows down. That’s your chance to redeploy labor strategically. Cross-training employees in both outbound and reverse logistics roles gives you the agility to flex staff as demand shifts.
Having a bench of flex workers already familiar with your processes reduces the need to bring in temps who require ramp-up time, and avoids compromising quality.
Follow Reverse Logistics Best Practices
Efficiency matters just as much in reverse logistics as it does in outbound. Some best practices include:
- Digital return portals: Let customers initiate returns online, capture reason codes, and print labels at home.
- Pre-labeling: Helps customers and speeds up scanning upon arrival.
- Barcode scanning at intake: Ensures products are immediately tracked in your WMS.
- Real-time status updates: Customers want to know when their return is received and processed — communication reduces support tickets.
Partner with a 3PL for Space, Labor, and Expertise
Returns are unpredictable and often peak quickly. Partnering with a 3PL that specializes in reverse logistics can give you access to:
- Temporary overflow space
- Staff trained in inspection and disposition
- Pre-established processes for sorting, restocking, and routing
The key is to plan the partnership early. Don’t wait until you’re knee-deep in returns to bring in external help — identify a 3PL that can grow with you.
Use Returns as a Sustainability and Revenue Opportunity
Every returned item is a cost, but it doesn’t have to be a loss. Evaluate ways to resell B-stock or refurbished goods through secondary channels. Build donation partnerships with nonprofits. Pre-sort returned items based on condition so that they can be repackaged, relabeled, or rerouted faster.
Sustainability-minded consumers appreciate brands that don’t simply toss returns. There’s also growing pressure on operations to reduce waste; efficient returns processing helps meet those goals.
Final Checklist for Operations Managers
To make sure your operation is returns-ready in 2026:
✅ Forecast expected returns volumes by SKU
✅ Allocate warehouse space for dedicated returns intake
✅ Cross-train workers and build flex teams
✅ Implement scanning and digital return tools
✅ Partner with 3PLs for overflow and specialized labor
✅ Have a plan for resale, refurbishing, and sustainability
About iJility
At iJility, we help eCommerce companies streamline both peak season fulfillment and the complex returns season that follows. Our workforce solutions are customized to your operations — whether you need a dedicated reverse logistics team inside your facility or flexible headcount deployed to your 3PL partner’s site. We train our teams on your SOPs to ensure speed, accuracy, and brand consistency.
Returns season doesn’t have to be chaotic. Let’s build a plan that works. Schedule a discovery call with iJility today.
