Brands are changing their return policies for the holiday season, with some introducing temporary rules that expire after the January returns rush, Modern Retail reported.
The changes come as retailers prepare for a surge in returns following fourth-quarter sales. A 2025 survey by Happy Returns and the National Retail Federation found that retailers expect about 17% of holiday sales to be returned.
Brands are extending standard 30-day windows to account for holiday travel and gift purchases. Some are also offering free returns and exchanges to make shoppers more comfortable buying during the season.
The changes can have a direct impact on sales. Loop data shows 58% of consumers have abandoned a brand because of its return policy, while 92% say return fees affect how they shop.
Retailers are also looking to turn returns into another sales opportunity. Customers exchanging items can be offered related products or discounts. Beauty brand Jones Road generated $197,000 in additional revenue from customers who continued shopping during the return process, while retaining $3.1 million in sales through exchanges.
