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5 Proven Ways to Turn BFCM Returns into Revenue in 2025

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cubii using WeSupply exchanges

Set Expectations Before the Sale Happens

A. Return Policy Best Practices for Bundles

Turning the Returns Challenge into a Revenue Opportunity

Every year, Black Friday and Cyber Monday (BFCM) create a shopping frenzy. People rush online and into stores, filling carts with deals too good to resist. BFCM sales represent a crucial period for retailers, driving significant revenue and shaping end-of-year results. The BFCM weekend is the critical timeframe when both sales and returns spike, requiring careful planning. But once the excitement fades, many of those purchases end up coming back as returns, as many customers actively engage in post-purchase returns after BFCM. In fact, the National Retail Federation estimated that in the U.S. alone, about 16.5% of retail purchases were returned in 2023, which added up to over $800 billion worth of goods. During the holiday season, return rates can be even higher because shoppers often buy gifts that don’t fit, aren’t wanted, or simply don’t match expectations. This peak season amplifies return rates, making it essential for businesses to prepare accordingly.

Nearly half of merchants report that BFCM and holiday season revenue accounts for over 20% of their annual income, highlighting just how significant this period is for retail businesses.

For ecommerce businesses, returns can feel like a heavy cost. They reduce profit, add operational stress, and sometimes even disappoint customers. However, focusing on returns can lead to better customer satisfaction by improving processes and meeting customer needs. But here’s the good news: returns don’t have to be a loss. With the right approach, they can actually become a powerful driver of revenue and loyalty. Instead of thinking of returns as the end of a sale, smart retailers now see them as a chance to win customers over for the long run.

In 2025, where customer expectations are higher than ever, businesses that treat returns as an opportunity rather than a problem will stand out. Delivering a positive customer experience during and after BFCM is crucial for building loyalty and trust. The key lies in creating a customer-friendly process that also protects your bottom line. This article will explore four proven ways to do just that strategies that turn BFCM returns into revenue opportunities and build lasting customer relationships.

Understanding Customer Expectations in the BFCM Returns Process

During the Black Friday Cyber Monday (BFCM) rush, customer expectations for the returns process are higher than ever. Shoppers want a seamless, transparent, and hassle-free experience when returning items especially after the excitement of snagging BFCM deals. For ecommerce businesses, meeting these expectations is essential for maintaining customer satisfaction and building brand loyalty.

Customers expect clear communication at every step of the returns process. This means providing relevant details upfront, such as how long the return window lasts, who covers shipping costs, and what options are available for exchanges or store credit. When customers know exactly what to expect, they feel more confident shopping with your brand, even if they need to make a return.

Customer service agents play a crucial role in this process. Friendly, knowledgeable support can turn a potentially negative experience into a positive one, helping to resolve issues quickly and efficiently. By empowering your team to handle return requests with empathy and clarity, you enhance customer satisfaction and foster loyalty even when things don’t go as planned.

Ultimately, maintaining customer satisfaction during the BFCM returns process isn’t just about minimizing complaints; it’s about creating opportunities for revenue growth and repeat purchases. When ecommerce businesses prioritize a smooth, customer-centric returns experience, they build brand loyalty that lasts well beyond the holiday season.

1. Encourage Exchanges and Store Credit Over Refunds

The simplest way to lose money from a return is to issue a straight refund. The money leaves your business, and there’s no guarantee the customer will come back. That’s why more brands are shifting toward exchanges and store credits. These options keep revenue in-house while also giving customers flexibility. By encouraging exchanges and store credits, you can enhance customer loyalty by motivating customers to make future purchases.

Think about this scenario: a shopper buys a sweater during BFCM but decides it doesn’t fit. If they return it for a refund, the transaction is over. But if you offer them store credit say, even more than the original amount they’re more likely to buy again. For example, if they return a $100 sweater and you give them $110 in store credit, that extra incentive encourages them to stay loyal. They may even spend more than the credit when browsing your store.

Exchanges can also be a powerful tool. Instead of losing the sale, you help the customer find a product that works better for them. Many ecommerce brands now offer free shipping on exchanges, making it a smoother experience than asking for a refund. Some also recommend higher-value items during the exchange process, turning a return into an upsell. Platforms like Loop have shown that retailers using exchange-focused return portals convert over 50% of returns into exchanges or store credits. These efforts can delight customers and turn returns into positive moments that increase satisfaction and engagement.

What’s most important here is choice. Customers want to feel like they are in control. Offering clear, easy options refund, exchange, or credit shows respect for the customer while gently nudging them toward the option that keeps revenue within your business. Clear return options can also help convert one-time buyers into repeat customers. Transparent policies build customer trust. It’s a win-win: they get what they want, and you don’t lose the sale.

2. Streamline the Returns Experience with Automation and Self-Service to Improve Customer Satisfaction

Nothing frustrates customers more than a complicated return process. Waiting on hold, digging through unclear policies, or struggling to print a return label can turn even the most loyal shopper away. That’s why automation and self-service have become game-changers for returns management. These tools help ensure smooth operations during high-traffic periods like BFCM, allowing your team to handle increased volume without sacrificing service quality.

Automated systems can approve return requests instantly, send prepaid labels, and issue refunds or credits much faster than a human agent. During busy periods like BFCM, this efficiency is crucial. Data from AfterShip showed that merchants using auto-approval workflows cut return processing time by more than three days on average. Faster returns mean happier customers and fewer complaints filling up your support team’s inbox.

Self-service return portals also play a big role in improving the experience. These are customer-friendly dashboards where shoppers can initiate a return, choose whether they want an exchange or refund, and track the status without needing to contact support. By putting customers in control, you reduce friction while also lowering the workload for your team. Engaging customers through multiple channels such as email, SMS, and apps ensures they receive timely updates and support throughout the returns process.

Technology can go a step further, too. Some retailers now use AI-powered recommendation engines within their return portals. Let’s say a customer is returning a pair of shoes because of the wrong size. Instead of simply processing the return, the system can suggest the correct size or recommend a similar style. This transforms what could have been a lost sale into an immediate exchange. Automation like this leads to efficient operations and better customer outcomes.

Brick-and-mortar stores can also use returns as an opportunity. Allowing in-store returns for online orders creates another touchpoint with customers. When shoppers walk in to return something, store associates have the chance to suggest alternatives, upsell new arrivals, or even sign them up for loyalty programs. For online stores, managing returns efficiently during BFCM is essential to maintain customer satisfaction and loyalty. In this way, returns become less of a hassle and more of a chance to build stronger relationships.

At the end of the day, a smooth and fast process is key. Customers expect returns to be as simple as the original purchase. The easier you make it, the more likely they are to trust you with their next order. Operational challenges like shipping delays can be mitigated with better returns management, ensuring customers remain satisfied even during peak shopping seasons.

3. Leverage Returns Data and Analytics to Reduce Future Costs

Every return carries valuable information. Maybe a shirt runs smaller than expected, or a product photo didn’t match the actual color. If you collect and analyze this data, you can reduce future returns and improve overall satisfaction.

For example, many ecommerce platforms now track the reasons behind each return. Common reasons might include “too small,” “not as described,” or “defective item.” If you notice that a particular jacket is often returned for sizing issues, you could update the product page with a clearer sizing chart or customer reviews that mention fit. Be sure to highlight key features such as materials, dimensions, fit, and color options to set accurate expectations and reduce returns. These small adjustments can prevent hundreds of future returns, saving both time and money. Additionally, providing clear information helps reduce gift shopping guesswork during BFCM, making it easier for customers to choose the right products and decreasing the likelihood of returns.

Returns data can also help segment customers. Not all returners are the same. Some may habitually buy and return items with little intention of keeping them, while others are loyal shoppers who just needed a different size or style. By identifying these groups, you can adjust your marketing strategies. For habitual returners, you might tighten return policies, while for high-value customers, you could offer more generous exchange incentives. Analyzing customer behavior, such as browsing patterns and purchase history, can further inform how you tailor your return policies to different segments.

Predictive analytics is another emerging tool in 2025. By analyzing historical data, businesses can predict which products are most likely to be returned and plan accordingly. If certain categories consistently see high return rates, you can adjust inventory levels, pricing strategies, or marketing messaging to better align with customer expectations.

Using returns data not only reduces costs but also improves the shopping experience. Customers notice when product descriptions become more accurate, when sizing guides are clearer, and when overall quality improves. This builds trust, and trust leads to loyalty. Analyzing return data after holiday sales can also reveal trends and inform future strategies for converting seasonal shoppers into long-term customers.

4. Use Returns as a Customer Loyalty and Retention Engine

One of the most powerful ways to turn returns into revenue is to focus on customer retention. Acquiring new customers is expensive, especially during BFCM when marketing costs skyrocket. Retaining the customers you already have is far more cost-effective and returns are a perfect moment to build that relationship.

Loyalty programs are a great starting point. During the returns process, invite customers to join your program by offering points for their return or a bonus for signing up. For example, if a customer returns an item, you could immediately give them 200 loyalty points, enough for a small discount on their next order. This softens the sting of a return while encouraging them to shop again. Incorporating sustainable practices, such as encouraging exchanges over refunds, can also appeal to eco-conscious shoppers and reduce waste. These loyalty and retention strategies are a key revenue driver during BFCM, helping to maximize sales from your existing customer base.

Mobile apps are another effective channel. Retailers that encourage app downloads during the return process can later re-engage shoppers with push notifications, exclusive discounts, and early access to new products. Studies show that app conversion rates are about three times higher than mobile websites, making them a powerful tool for long-term retention. Improving the conversion rate through app engagement directly boosts retention and increases the likelihood of repeat purchases.

Communication after the return is equally important. Instead of simply sending a bland “Your return has been processed” email, brands can use this as a chance to reconnect. A thoughtful message could say, “We’re sorry this item didn’t work out. Here are some alternatives you might like, plus a 15% discount on your next order.” This turns a disappointing experience into a positive one and keeps the brand top of mind. A strong post purchase experience at this stage can foster loyalty and reduce future return rates.

Returns should also feed into your broader retention strategy. By treating returners not as lost customers but as opportunities for engagement, you create a cycle of trust and loyalty. SMS marketing is especially effective for post-return offers, delivering time-sensitive deals and personalized messages that drive quick responses. In fact, a recent survey found that 84% of BFCM shoppers plan to spend the same or more in 2025 compared to the previous year. Winning them back after a return can lead to years of repeat purchases. Retention strategies like these not only build long-term value but also contribute significantly to BFCM revenue by turning returners into loyal, high-value customers.

5. Unlocking Cross-Sell Opportunities During the Returns Journey

The returns journey doesn’t have to be the end of the customer relationship in fact, it can be a powerful moment to unlock cross-sell opportunities and drive revenue growth. For ecommerce businesses, offering store credit or exchanges instead of refunds encourages customers to stay engaged and make additional purchases, reducing lost sales and increasing average order value.

By leveraging customer data, you can provide personalized product recommendations during the returns process. For example, if a customer is returning a pair of shoes, your returns management app can suggest similar styles or complementary accessories, making it easy for customers to find something they love. This not only enhances the customer experience but also encourages customers to remain loyal and consider future purchases.

Efficient returns management is key to reducing customer service tickets and ensuring timely delivery of exchanged or replacement products. When the process is smooth and hassle-free, customers are more likely to have a positive experience and build lasting relationships with your brand. Providing relevant details about new products or exclusive offers during the returns process can further encourage customers to cross sell and explore your store.

By prioritizing customer satisfaction and making the returns journey a positive touchpoint, ecommerce businesses can turn what might have been lost revenue into an opportunity for growth. A seamless, customer-focused returns process helps build lasting customer relationships, encourages repeat purchases, and positions your brand as a trusted leader in the market.

Turn Returns into Cross-sell Opportunities

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Proven Ways to Turn BFCM Returns into Revenue in 2025 with WeSupply

Think of returns not as lost sales, but as powerful opportunities to win back customers, grow loyalty, and boost profits. With WeSupply, retailers can transform the challenges of BFCM returns into revenue-generating moments making every return part of a smarter, more engaging shopping experience.

Here’s how WeSupply makes it possible:

  • Track What Matters Most: Use CSAT, NPS, and CES to understand customer satisfaction and fix problems before they cost you sales.

WeSupply CSAT and NPS - returns updates

  • Turn Returns into Exchanges: Encourage shoppers to swap products instead of refunding whether for the same item, a higher-value one, or a store credit that keeps them coming back.

exchanges - dell
Greenworks using WeSupply Gift Cards

  • Automate & Speed Up Returns: Self-service returns, instant labels, and automated notifications mean customers get fast solutions without needing support tickets.

Anne Fontaine using WeSupply self service returns
WSS using WeSupply return rules to prevent return abuse
WeSupply branded returns center - Kodiak Leather Schuller Shoes KAI USA
Invicta Watches using WeSupply recommended products with Justuno and LimeSpot
return reasons - suit jacket sku analytics

By making returns seamless, personalized, and profitable, WeSupply helps retailers turn BFCM challenges into long-term revenue opportunities in 2025.

👉 Ready to see it in action? Book a demo with WeSupply today and discover how you can turn returns into revenue.

Conclusion: Returns as the New Growth Driver in 2025

For too long, retailers treated returns as a loss, but with BFCM 2025 approaching, it’s clear that returns can fuel growth when managed strategically.

With WeSupply, businesses can transform returns into revenue by encouraging exchanges over refunds, offering store credits and gift cards that drive repeat purchases, and delivering fast, self-service automation that delights customers. Advanced fraud prevention safeguards profits, while branded portals, proactive notifications, and personalized product recommendations turn every touchpoint into an opportunity. Returns analytics reveal why products come back, helping retailers refine sizing, descriptions, and overall quality. Instead of being weighed down by operational complexity, merchants can use WeSupply to create seamless, profitable, and loyalty-driven post-purchase experiences.

By treating every return as the start of a stronger relationship, brands can unlock long-term growth during BFCM and beyond.

Frequently Asked Questions

1. How can retailers turn BFCM returns into revenue in 2025?
Retailers can convert BFCM returns into revenue by encouraging exchanges, offering store credit, using automation, analyzing return data, building loyalty programs, and leveraging cross-sell opportunities during the returns journey.

2. Why are BFCM returns so high?
BFCM return rates spike due to gift mismatches, sizing issues, and impulse purchases. Higher holiday return volumes make a seamless return strategy essential for maintaining customer satisfaction and revenue.

3. What strategies reduce return-related losses after Black Friday Cyber Monday?
Retailers minimize losses with exchanges over refunds, return automation, data-driven insights, loyalty incentives, and personalized product recommendations that turn returns into new sales opportunities.

4. How does WeSupply help retailers turn returns into revenue?
WeSupply automates returns, encourages exchanges, offers smart store credits, detects fraud, and delivers branded experiences, turning costly returns into loyalty-driven revenue opportunities.

5. Can WeSupply prevent return fraud during BFCM?
Yes. WeSupply uses intelligent fraud detection to identify serial returners and policy abusers, protecting retailer profits during peak shopping seasons.

6. What makes WeSupply different for BFCM returns management?
WeSupply combines automation, branded return portals, advanced analytics, and personalized product recommendations to make returns seamless, reduce losses, and boost repeat purchases.

7. Does WeSupply have an Official Shopify App?
Yes. WeSupply has an Official Shopify App. You can download it and start integrating with your Shopify Store.

8. Does WeSupply have an official Magento extension?
Yes, WeSupply has an official extension for Magento. The WeSupply x Magento integration allows for automating order tracking experiences, reducing customer inquiries, automating shipping email and SMS notifications, and providing a fully branded order tracking experience

9. Does WeSupply have an official BigCommerce App?
Yes, WeSupply has an official BigCommerce App. You can integrate WeSupply with your BigCommerce store to improve your post-purchase customer experience.

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