For retail customer service teams, the holiday season does not end on December 25. In many ways, it starts again in January. Gifts that did not fit, did not suit or arrived late come back, and the questions come with them: How do I return this? Where is my refund? Can I exchange it for something else?

That second wave catches many teams off guard. Seasonal staff have left, budgets have reset and leaders are focused on the next quarter. Yet the January returns wave often decides whether holiday shoppers become repeat customers or quiet churn.

This guide explains how to prepare retail and e-commerce support for the returns wave: forecasting it, staffing for it, simplifying the policy and using return contacts to keep customers rather than lose them.

Why the Returns Wave Is Different

Return contacts are not like order contacts. They are more emotional, because the customer is often unhappy or confused. They are also more complex, because they involve policies, exceptions, gift receipts, refunds to different payment methods and sometimes damaged items.

In addition, many January customers are not your usual buyers. They received a gift and have never dealt with your brand before. So their first experience with you may be a return conversation, which makes that conversation a first impression.

Forecast the Wave Before It Arrives

Most retailers can predict their returns wave with reasonable accuracy. Start with last year's return contacts by week, then adjust for this year's holiday sales and any policy changes. Product mix matters too: apparel and footwear usually generate more size-related returns than home goods.

Then split the forecast by channel and contact type. Return-status questions might arrive by chat and email, while exchanges and exceptions may need phone support. A good forecast tells you not only how many contacts to expect but also which skills you need and when.

Keep Seasonal Knowledge in the Building

One common mistake is releasing all seasonal agents in late December. Those agents know your products, systems and policies by then. Therefore, keep part of the holiday team through mid-January, and move them from order support to returns and exchanges.

If you work with a partner, agree on this in advance. A flexible team that ramps down gradually, rather than all at once, protects service when the returns wave peaks.

Simplify the Policy Customers Actually Read

Most return contacts start with confusion about the policy. Customers want to know the deadline, whether they need a receipt, how refunds work for gifts and whether they can exchange instead. If those answers are buried in long terms and conditions, they call.

So publish a short, plain-language returns summary before the holidays. Include a clear extended holiday return deadline if you offer one, how gift returns work, and how long refunds take to appear. In practice, a clear summary can prevent a large share of policy questions before they reach an agent.

Automate Status, Personalize Exceptions

Return-status questions are ideal for self-service. Customers want to know whether you received their package and when their refund will arrive. Proactive emails and a self-service status page answer most of these without an agent.

By contrast, exceptions need people. A customer outside the return window, a damaged item or a gift with no receipt all require judgment. Give agents clear rules and some authority to make exceptions within limits. That way, they can resolve issues in one conversation instead of escalating every case.

Turn Returns Into Exchanges

A return does not have to be a lost sale. Many customers who return a gift would happily choose something else if someone helped them. Train agents to offer exchanges naturally: a different size, color or a similar product.

Also consider offering exchanges or store credit with a small incentive, such as free shipping on the replacement. In the right moment, that simple offer keeps revenue and gives a new customer a reason to come back.

Serve Customers in Their Language

Gift recipients come from every background. About 13% of the U.S. population aged five and older speaks Spanish at home, according to the U.S. Census Bureau. For many retailers, a native Spanish-speaking queue during the returns wave reduces repeat contacts and complaints, because customers understand the policy the first time.

Measure What Matters in January

• Return contact rate: return contacts as a share of holiday orders.
• Exchange save rate: returns converted into exchanges or store credit.
• Refund status repeat contacts: a sign that proactive updates are missing.
• First contact resolution on exceptions: shows whether agents have enough authority.
• Customer satisfaction after return: the best predictor of whether a new customer comes back.

Fraud and Abuse Without Punishing Everyone

Returns season also brings return abuse, such as wardrobing or false damage claims. However, strict rules applied to everyone hurt honest customers. Instead, give agents clear signals to watch for and a simple escalation path, and let the fraud team handle the rest.

Learn From the Wave

When volume settles, review what drove contacts. Which products had the highest return rates? Which policy questions came up most? Which issues needed escalation? Then share those findings with merchandising, product and marketing teams. Many returns start with unclear product descriptions or sizing guides, and those are fixable before next season.

A Week-by-Week Returns Plan

A simple calendar keeps the whole team aligned. In early December, publish the holiday return summary and brief agents on extended deadlines and gift return rules. In the week after Christmas, expect the first spike in return-status and exchange questions, and keep holiday staff on the floor.

Then, in the first two weeks of January, volume usually peaks as packages arrive at the warehouse and refunds start processing. Proactive refund emails matter most here. By late January, contacts shift toward refund timing, exceptions and late returns, and teams can scale down gradually while watching service levels.

Finally, in February, run the review. Compare actual volume with the forecast, record which contact types surprised you and update next year's plan while the details are fresh.

Coordinate With the Warehouse

Many return contacts are really warehouse questions in disguise. Customers call because a return has not been scanned or a refund has not posted. So connect support with the returns center: share daily processing volumes, flag delays early and give agents visibility of where each return sits. When the warehouse falls behind, support should know before customers start calling.

In addition, agree on service promises that both teams can keep. Telling customers a refund will arrive in five days only helps if the warehouse can process returns that quickly during peak weeks.

Frequently Asked Questions

When does the holiday returns wave usually peak?

For most retailers, return contacts peak in the first two weeks of January, as gifts are sent back and refunds begin processing. Extended holiday return windows can stretch the wave into late January.

How can retailers reduce return-related calls?

Publish a short, plain-language returns summary before the holidays, send proactive refund updates and offer a self-service return-status page. Most status questions disappear when customers can see progress themselves.

Should support agents try to turn returns into exchanges?

Yes, when it helps the customer. Offering a different size, color or similar product keeps revenue and gives gift recipients a reason to buy again, as long as the offer is genuine rather than pushy.

How long should seasonal agents stay after the holidays?

Keep at least part of the holiday team through mid-January. They already know your products and systems, which makes them the best people to handle returns and exchanges during the peak.

The Takeaway

The January returns wave is predictable, so it should not be a surprise. Forecast it, keep seasonal knowledge in place, simplify the policy, automate status updates and empower agents to handle exceptions and offer exchanges. Done well, returns season turns first-time gift recipients into loyal customers.