The holiday season is a busy time for brands, not just in sales, but also in handling the inevitable wave of returns that follow. In 2023, 17.6 percent ($247 billion) of online merchandise was returned – 7% higher than in-store items. All of this adds up to logistical headaches and excess inventory. However, with the right strategy in place, brands can re-capture value, build deeper customer relationships and ultimately, turn those returns into a growth opportunity.

Understanding the True Cost of Holiday Returns

An estimated $148 billion in holiday merchandise was returned in 2024, nearly 15.4% of all holiday sales. These returns leave brands stuck with past-season inventory and increase operational costs through added labor, processing, and storage demands. These costs especially stack up for categories like apparel, which sees higher-than-average returns. 

With return rates climbing year over year, the risk of revenue loss is steeper than ever. But there’s good news: resale has emerged as an effective way to keep more revenue in your pocket and build positive brand experiences for consumers. 

How Resale Helps You Handle Returns This Season

The key to managing holiday returns is to minimize the chaos while maximizing the value you can get from returned items. That’s where resale shines. A strong recommerce program gives brands a chance to resell returns at a higher margin instead of resorting to markdowns or liquidation. 

At Trove, we designed our Recommerce WMS platform to do exactly this –  turning non- new returns into a profitable channel through end-to-end automation of your resale program.  Our brands have seen a 20% increase in gross margin recovery on resale compared to traditional liquidation methods. With the right technology and integrations, you can streamline every part of the returns process, from initial intake to re-listing in an online or physical resale shop.

Here are three practical steps to get ahead of holiday returns with resale: 

1. Optimize Inventory Management for Return Surges

Deploying an inventory management solution allows brands to forecast return volumes and efficiently plan space and staffing in logistics centers. Connecting your inventory management solution with your resale platform helps your team prepare for high-volume periods, minimizing bottlenecks and keeping the supply chain moving.

For example, Trove’s Recommerce WMS integrates with your existing solutions – providing visibility into incoming returns, reducing manual intervention, and routing products to the most profitable channels as quickly as possible. 

The impact? Smoother operations and improved margins, even in peak return seasons.

2. Automate Returns Processing to Streamline Operations

When return volumes spike, managing the process manually can lead to delays, frustrated customers, and overwhelmed teams. Implementing automation ensures that every step, whether it’s processing, tracking, or re-routing items, is fast, accurate, and scalable.

Trove’s platform is built to handle high-volume returns at scale, providing automated guidance at every stage, from setting dynamic pricing to determining the best fulfillment path. Integrated features like real-time status tracking and notifications keep operations running, while connections to existing WMS solutions reduce errors. 

Automation not only makes it possible to manage returns at scale, but also transforms returns from a post-holiday headache into a more efficient, value-driven operation.

3. Give Customers Flexibility With Their Returns

Returns are a crucial moment in the customer journey and can be a chance to turn a potential hassle into a positive, loyalty-building experience. 

Offering flexible return solutions, even for items that can’t be returned as new, ensures these products are reused or resold, rather than going to waste. This reinforces the idea that their return contributes to a circular economy, allowing the customer to feel better about their return experience.

Trove facilitates this by minimizing delays and offering real-time tracking with dynamic rules that route items for resale, repair, or recycling. This transparency helps brands maintain flexible return programs without sacrificing financial viability, creating stronger long-term relationships with customers.

Ready to Tackle Holiday Returns Head-On?

January doesn’t have to bring a post-holiday slump. With Trove’s technology, you can simplify returns, recapture value, and optimize inventory, all while bringing new customers into the fold.

Connect with Trove to design your resale program just in time for the holiday rush.