Holiday Returns Are Coming: How Jewelry Retailers Should Prepare Now

If you’re a jewelry retailer, Dec 26 isn’t just “the day after Christmas.”

It’s the start of returns season—when exchanges spike, gift receipts come out, ring sizes suddenly “aren’t quite right,” and your team gets hit with a brand-new rush… right after surviving the holiday rush.

Industry reporting consistently shows that return activity peaks right after Christmas (often Dec 26–28), with some outlets citing return requests jumping to multiple times normal levels during that window. And NRF’s 2025 returns research projects that about 19.3% of online sales will be returned in 2025, with return fraud still a meaningful concern.

So yes: jewelry holiday returns are coming. The retailers who handle them well don’t just “reduce damage”—they actually create revenue through better exchange flows, smarter policies, and CRM-driven follow-ups.

Here’s the playbook.

If you’re a jewelry retailer, Dec 26 isn’t just “the day after Christmas.”

It’s the start of returns season—when exchanges spike, gift receipts come out, ring sizes suddenly “aren’t quite right,” and your team gets hit with a brand-new rush… right after surviving the holiday rush.

Industry reporting consistently shows that return activity peaks right after Christmas (often Dec 26–28), with some outlets citing return requests jumping to multiple times normal levels during that window. And NRF’s 2025 returns research projects that about 19.3% of online sales will be returned in 2025, with return fraud still a meaningful concern.

So yes: jewelry holiday returns are coming. The retailers who handle them well don’t just “reduce damage”—they actually create revenue through better exchange flows, smarter policies, and CRM-driven follow-ups.

Here’s the playbook.

1) Treat returns as a sales event, not a problem

Returns feel like loss. But in jewelry retail, exchanges are your secret weapon.

Your real goal from Dec 26 onward should be:

• Convert returns into exchanges
• Convert exchanges into trade-ups
• Convert trade-ups into repeat customers

That’s not fluff—it’s margin protection.

The mindset shift that matters

Instead of “Do you want a refund?” train your team to ask:

• “Would you like to exchange it for something you love more?”
• “Do you want the same look, just a different size/metal length?”
• “Do you want to keep this style, but upgrade the stone/setting?”

This is jewelry exchange management in action: you’re keeping value inside your store.

2) Lock your return policy now—and communicate it clearly

Confusion creates conflict. Conflict kills customer trust.

Before Dec 26, make sure these are crystal clear in-store, on receipts, and on your website:

• Refund window (days from purchase)
• Exchange window
• Condition requirements (tags, packaging, unworn, etc.)
• Exceptions (custom, engraved, special orders, final sale)
• Whether you offer store credit and when

For Canada: consumer rules are province-specific, and government guidance notes many stores may restrict returns during peak holiday periods like Boxing Day through New Year’s depending on policy—so clarity matters even more.

3) Prepare your “Top 20 Exchange SKUs” before Dec 26

This is the most tactical, highest-ROI step.

In returns season, shoppers don’t want 500 options. They want fast resolution.

Create a tight “exchange-ready” selection:

• Studs and huggies (safe gifts)
• Pendant necklaces (easy to wear)
• Adjustable bracelets
• Best-selling chains in common lengths
• Stackable rings in common sizes (or sizing options)
• Giftable lab-grown/natural basics in key price bands

And stock them deep enough that you can confidently say: “Yes, we have great options right now.”

This reduces refunds and increases satisfaction.

4) Triage returns fast: resellable vs repairable vs write-down

Returns become expensive when they linger.

Your process should sort every return into one of three lanes immediately:

1. Resellable today (perfect condition, can go right back into stock)
2. Resellable after service (needs cleaning/polish/re-tag/repackage)
3. Not resellable (final-sale damage, missing parts, excessive wear)

Why this matters: returns have a real cost—handling, shipping (if e-comm), inspection, repackaging, markdowns, and sometimes disposal. The broader retail industry has been grappling with these costs as returns have grown with e-commerce.

For jewelry specifically, the “service” lane is often where you win:

• Quick clean/polish
• Reboxing
• Put it back on the floor at full price (or minimal markdown)

5) Make size issues painless (because they’re the #1 exchange driver)

A lot of post-holiday jewelry returns are not “I don’t like it.” They’re:

• Ring doesn’t fit
• Chain length isn’t right
• Bracelet is too tight/loose
• Earrings feel heavier than expected

Your best move: offer “fit fixes” as an alternative to returning.

Examples:

• Free first ring sizing within X days (with limits)
• Chain exchange for different length (within X days)
• Bracelet adjustment included

This turns a return into a service moment—and keeps the relationship intact.

6) Use CRM tags to turn returns into future revenue

This is where jewelry CRM software becomes your advantage.

Returns season gives you a goldmine of data about what customers actually want:

• “Bought for partner” vs “self-purchase”
• Preferred styles (classic vs bold)
• Metal preference
• Price sensitivity
• Common fit issues
• Who is a high-frequency exchanger vs high-value upgrader

At minimum, tag:

• Return reason (size, taste, duplicate gift, quality concern)
• Exchange outcome (refund/store credit/exchange/trade-up)
• Follow-up needed (resize scheduled, repair ticket, special order)

Then build 3 simple campaigns in January:

1. “Your exchange is in—want to complete the set?”
2. “Free cleaning + inspection in January” (brings people back in)
3. “Valentine’s early access” for gift buyers

This is how you convert a seasonal operational headache into Q1 pipeline.

7) Protect yourself from return fraud—without ruining the experience

NRF’s 2025 returns research highlights return fraud as an ongoing concern (with a notable share of returns estimated to be fraudulent). National Retail Federation+1 That doesn’t mean you treat every customer like a suspect—but you do tighten basics:

• Require receipt or verified purchase
• Track serial numbers / item IDs where applicable
• ID capture for high-value refunds (as policy)
• Clear final-sale rules
• Limit cash refunds
• Use store credit strategically

The key is consistency: staff should apply rules the same way every time.

8) Make “in-store returns” the default (even for online orders)

Industry-wide, online purchases tend to have higher return rates than in-store, and returns processing is costly. Financial Times+1 For jewelry, in-store returns are your chance to save the sale.

In-store returns allow:

• Immediate exchange guidance
• Fit solutions (sizing, chain length)
• Trade-up conversations
• Add-ons (warranty, cleaning kit, matching piece)

If you do e-commerce, push messaging like:

• “Return online purchases in store for faster exchange options.”

9) Operational checklist for the week before Dec 26

If you want to be fully ready, do this between now and Dec 24:

• ✅ Print and post your return/exchange policy at checkout + website
• ✅ Pre-build “exchange-ready” displays by price band (Under $250 / $500 / $1,000)
• ✅ Pre-tag your Top 20 exchange SKUs in your system
• ✅ Set up a “Returns triage” station (cleaning supplies, packaging, labels)
• ✅ Train staff on the exchange-first script
• ✅ Decide what qualifies for “resell today” vs “needs service”
• ✅ Set daily reporting: refunds vs exchanges vs trade-ups
• ✅ Set CRM tags for return reasons + follow-up workflows

Where Luxare by Diaspark fits

Luxare by Diaspark supports jewelry retailers across the US and Canada—and returns season is exactly where jewelry-specific workflows matter:

• Fast returns and exchanges at POS (without chaos)
• Customer history and CRM tagging (so returns lead to future sales)
• Inventory updates that reflect resellable vs service-needed items
• Reporting that shows your true cost of returns and exchange conversion rate
• Repair/service workflows (for items that need quick refurb before resale)

In other words: you don’t just “process returns.” You manage returns profitably.

‍