How to Strengthen Ecommerce Returns Management Before the Holidays

When Emily Olivieri, SVP of Supply Chain & Operations at Nisolo, saw that a returned shipment had a literal box of rocks, her reaction was part disbelief, part realization… This was a symptom of something bigger. 

For years, retailers have treated ecommerce returns as a back-office chore instead of a strategic advantage. But any seasoned operator will tell you that what happens post-purchase can be make or break, especially after peak season.

Every November, order volumes surge. By January, that wave crashes into warehouses across the country — what some operators jokingly call the Returns Super Bowl. 

For teams without a solid returns management system, that surge can bury inventory from returned items, delay refunds, and crush profitability before Q1 even starts.

This playbook is about getting ahead of peak returns season.

We’ll unpack how leading brands and third-party logistics providers use better returns management solutions to reduce return fraud, increase restocking rates, and give operators visibility into every unit that comes back.

We wrote this playbook from a recent discussion with Emily Olivieri (Nisolo), Bailey Newton (Frate Returns), and Kyle Bertin (Two Boxes). If you’d rather listen than read, catch the full webinar recap here: 

Why holiday returns are different

Peak season exposes your biggest operational cracks.

Every inefficiency in your returns process becomes amplified. Packages flood in by the hundreds, inspection teams stretch thin, and return requests spike from first-time customers who may never buy again.

And this year, that test is even more difficult. 

Between tariffs, the end of de minimis, and a shaky macroeconomic climate, the cost of returns is higher than ever. As Bailey Newton, Co-Founder and CEO of Frate Returns says:

“Brands are shifting from growth-at-all-costs to efficiency. Returns are where you see whether your systems actually work.”

This is the moment when strong ecommerce returns management separates the operators from the overwhelmed. You can’t wait until January to fix your reverse logistics process. By then, the damage is already done.

Peak prep starts now…

“As a team, we’ve taken the past few months to focus on sharpening up,” said Emily. “We’ve been fine-tuning our reporting, escalation procedures, and day-to-day operations. My goal is always to ensure that when we’re in peak, we run our business just as if we’re not in peak. We’ve got the same calm and the same stability. Little can shake us.”

That means tightening the screws on your entire returns management process — from initiation to restocking — and aligning every system that touches it: your return portal, carriers, and third-party logistics partner.

If you haven’t started yet, don’t stress. We’re going to walk you through what you can do right now to optimize your operations and survive the surge.

7 steps to prepare your returns operations for peak

For so long, ecommerce was a “growth at all costs” sort of game. Dump a bunch of money into Meta ads and watch your brand grow. Easy, right?

Those days are long gone. 

Now, teams are finding ways to run leaner, streamline processes, and be more connected. In that shift toward efficiency, the reverse logistics journey has earned its seat at the table.

That’s because optimizing your returns management protects margins, improves visibility, strengthens fraud detection, enhances customer satisfaction, and helps you recover more returned products faster.

Emily discovered these wins at Nisolo, but first her team had to address some challenges:

“The top three challenges were, firstly, the end-to-end timeline for returns; secondly, visibility — it was very difficult to keep track of that; and finally, understanding the quality and the plan for products that don’t go back in stock.”

Here’s how Emily, Bailey, and Kyle recommend preparing your operations before the holiday flood hits.

Step 1: Audit your returns journey today

Most ecommerce businesses spend months fine-tuning outbound logistics ahead of peak — but the best operators map what happens after the sale, too.

Start by auditing your returns process end-to-end. From RMA initiation to restocking, outline every touchpoint, identify the owner for each stage, and fix bottlenecks before volume surges.

Here’s a quick checklist you can use when auditing your workflows: 

• Map your full return flow: initiation → transit → grading & inspection → restock

• Assign a single internal owner for returns performance

• Review 3PL SLAs and grading consistency

• Benchmark your average return-to-restock cycle time 

  
  

Step 2: Tighten fraud controls before volume spikes

Peak brings more than sales; it brings opportunists. 

Ever receive a returned package full of rocks, damaged goods, or nothing at all? These product returns are more common than you think, especially when refunds are triggered prior to inspection.

While these situations aren’t fun, they expose gaps in your returns management process and create an opportunity to mitigate return fraud.

Here’s what you can do to  enhance fraud detection:

• Require photos for damaged or defective returned goods

• Flag customers with high return rates for manual review

• Delay refunds until after inspection

• Train CS teams to automate how they handle edge cases

For example, using Frate, Nisolo added a simple photo requirement for customer returns. That single friction point filtered out bad actors before they ever reached the warehouse.

“Sometimes we’ll see an image and say, ‘That item shouldn’t be sent back at all.’ It saves everyone time and shipping costs,” Emily explained.

Platforms like Two Boxes reinforce this with built-in safeguards. By equipping warehouses with photo capture, inspection verification, and advanced refund triggers, operators have an extra layer of defense during peak chaos.

At peak, you need to verify before you refund. Otherwise, you may literally be paying for rocks.” - Bailey Newton, Co-Founder and CEO of Frate Returns

Step 3: Standardize grading and returns SOPs

During peak, warehouses process thousands of returned items a day. Without a standardized grading system, every associate defines “sellable” differently — and that’s how value slips through the cracks.

Two Boxes helps brands and 3PLs streamline this by guiding associates through grading, capturing item-level photos, and syncing returns data back to the brand in real time.

For Nisolo’s team, Two Boxes has been transformational, “We can see images and grades in real time — A-grade, seconds, or other. It’s made our warehouse conversations so much clearer,” shared Emily.

“When grading is consistent, you eliminate debates and accelerate restocks.” - Kyle Bertin, Co-founder and CEO of Two Boxes

Step 4: Have a plan for re-sellable items

Returns with light scuffs, light stains, or damaged packaging can be resold with the right process.The problem is, many teams don’t decide what to do with these returned products until it’s too late.

“If you wait until January, you’ll be sitting on thousands in trapped value,” said Kyle. “Have your rework menu ready now.”

This is why you need to treat resale like a product line, which starts by defining how you’ll handle re-sellable items before peak hits.

According to Emily, the Nisolo team approached resale by: 

• Creating clear grading rules and product descriptions: Decide which defects qualify for resale versus liquidation.

• Separating inventory early: Set up bins or SKUs for “second grade” items.

• Planning resale channels ahead of time: Outlet site? In-store? Recommerce partner? Decide now.

• Aligning teams on pricing logic: Making sure CX and marketing know the plan to improve your bottom line.

The goal is to create a “second life” path for imperfect items. “Having our resale plan locked before peak means we don’t waste time debating what’s next for each product. It just flows,” said Emily.

Step 5: Ensure alignment with your warehouse partner

The fastest way to reduce fraud, accelerate restock time, and maintain great customer experience is to ensure that your brand, warehouse, and technology partners are completely in sync before peak begins.

Because when you’re missing alignment, every small miscommunication — a mislabeled bin or  missed photo — can begin piling up, adding to your backlog.

Here’s what strong alignment looks like:

• Meet with your 3PL before peak to review staffing and returns policy procedures

• Integrate your return portal and warehouse tools for tracking returns in real time

• Set clear expectations for grading and inspection, including how to address fraud. Share visuals and returns data with suppliers to fix root-cause defects faster.

This is exactly how Nisolo and their 3PL, Jay Group, operate. 

“The Jay Group team was proactive. We could actually have strategic conversations instead of firefighting,” said Emily. “I’m at the 3PL often. The best ideas come from walking the floor together. We talk about returns as much as outbound shipping. It’s not an afterthought.”

Simply, when your warehouse feels like an extension of your team, everything runs smoother, especially under peak pressure.

Step 6: Proactively communicate policies externally 

Your customer-facing strategy matters just as much as your warehouse setup..

Every message you send — from order confirmation emails to your FAQ page — shapes the return experience.

Here’s what Bailey at Frate recommends:

• Extend return windows for first-time buyers to encourage trust and reduce spikes.

• Use dynamic policies: loyal customers get easier exchanges, while high-risk accounts face stricter checks.

• Automate exchanges for gifts and sizing issues to avoid refund churn.

• Include free return shipping or local drop off options

• Be crystal clear: communicate policies in confirmation emails and on-site FAQs.

The more frictionless the process feels for good customers, the less noise your warehouse faces from frustrated ones. Great policies protect both sides of the equation.

“The best returns strategy doesn’t just stop fraud — it prevents frustration.” - Bailey Newton, Co-Founder and CEO of Frate Returns

Step 7: Use real-time data to monitor peak returns operations 

Once the flood of online returns hits in January, flying blind isn’t an option. You can’t improve what you don’t see.

With warehouse returns solutions like Two Boxes, every item is photographed, graded, and dispositioned efficiently, giving you a live pulse on what’s coming back, how quickly it’s processed, and what’s ready to resell.

That means visibility into

• Average days from initiation to restock

• Percentage of items restocked vs. recycled or destroyed

• Units processed per hour (UPH)

• Refund lag time

• Inspection SLA adherence

• Top defect categories

When brands and 3PLs share these dashboards in real time, accountability becomes automatic. Everyone operates based on the same data, and decisions are made faster.

What peak season readiness looks like

Nisolo’s “box of rocks” moment helped identify an opportunity to transfer returns from a liability into an asset. Ultimately Emily and her team overhauled their reverse supply chain, from RMA to restock.

A peak-ready returns journey doesn’t happen by accident. It’s the result of intentional design: shared visibility, standardized grading, aligned partners, and proactive fraud prevention.

That’s exactly what Two Boxes was built to do, improving processing speed by 3X, reducing fraud by over 90%, and delivering 100% visibility across the entire returns journey.

When ecommerce businesses and 3PLs take a holistic approach with the right ecommerce returns solutions, the chaos of peak returns season can be managed effectively.

Book time with the Two Boxes team here if you want to learn more.