If you operate a retail site that does much of it’s business in the Holiday shopping season, you are probably up to your elbows in orders right now. It’s your favorite time of the year right ? Then comes the hangover after the Holidays when the returns start coming in and a chunk of that hard earned revenue starts flowing back out the door. But does it have to ?

Pamela Hazelton gave some great practical tips in the recent issue of Practical eCommerce that can help you out:

Offer Exchanges- A good way to keep money in your hands is to promote exchanges of a product for another product. Some customers may prefer a refund, but if you don’t even mention a “store credit” option, you will find yourself giving back a great deal more money than necessary.

Last year, I worked with a handful of sites who proposed store credits and roughly 46% of shoppers accepted them in lieu of actual refunds.

Hype Accesories- If you support a product line that is often accessorized, it makes sense to spotlight accessories and extend competitive pricing. There are iPod stores that sell more AFTER December 25 than they do between November 1 and Christmas.

I love practical tips. If your infrastructure supports it, definitely consider offering store credit and you may be able to hold on to more of your profits this Holiday Season.

Merry Christmas from the team here at Forge!