E-Commerce Growth and Post-Holiday ‘Return-uary’ Surge Drive Innovation in Reverse Logistics

The massive volume of product returns following the 2025 holiday season, a period dubbed ‘Return-uary,’ is placing significant strain on supply chains and accelerating investment and innovation in the reverse logistics sector. According to a report from Taylor, approximately 12.2% of online orders from the holiday season were returned in the first two weeks of January 2026 alone. While this intense pressure on returns processing typically eases by February, the underlying growth of e-commerce continues to fuel the need for more sophisticated returns management year-round.

In response to this growing demand, logistics providers are expanding their capabilities. FreightWaves reports that reverse logistics provider VASS has opened a new operations facility in Dallas, specifically to increase its capacity for handling returns from the electronics and e-commerce sectors. The new hub aims to manage rising return volumes, ensure compliance with stricter marketplace rules, and improve the recovery of value from returned high-end electronics.

The challenge is global, prompting governments to rethink cross-border returns processes. In its Budget 2026-27, the Indian government has proposed a new ‘Return to Origin’ (RTO) framework for unclaimed international courier shipments, as reported by Upstox. This policy would allow parcels to be sent back to the foreign sender rather than being auctioned or destroyed, a move designed to reduce congestion at courier terminals. The proposal is particularly relevant given the high rate of returns for e-commerce exports, which stands at 20-25%, compared to under 5% for traditional exports. A new digital system will link returned items with their original export records to expedite clearance.

The business impact of these trends is clear: an efficient reverse logistics strategy is no longer a secondary concern but a critical component of profitability and customer satisfaction in the e-commerce era. Companies must invest in infrastructure and technology to handle both seasonal peaks and the baseline of high return volumes. Meanwhile, policy innovations like India’s proposed RTO framework demonstrate a growing recognition at the government level of the need to facilitate a smoother, more efficient international returns process.

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