As good practice many online business owners will offer deals such as, "30 day money back" or "try risk free for 30 days" etc.   When doing this you will probably get some orders that will be returned for a various of reasons.  The bottom line to you though is what to do with the product and not get stuck with the loss revenue.

What do you do?  Can you return the product to your supplier?

Most suppliers will not allow you to return the product once you have ordered it from them so you need to think of alternatives ways of getting rid of the product.  My first choice would be Ebay.  You may not be able to get the profit you did with the "before Christmas" orders, but you can at least unload the product with out eating any money.  No profit, but no loss.  This is better then the alternative of losing money and having products that you will never use or be able to sell later on.

Another option would be to try selling the product with a local classified paper for easy "local" pickup etc.  A lot of times there are people looking in classified ads for the wierdest of stuff so your products no matter what they are will probably sell.  Again, just try to unload the product and not take a loss.  Look at it this way - what if the product cost 400 dollars, and you could not sell it for that, but you can sell it for 350, losing 50 is better then all 400 - right?

I hope you see where I am going with this, but I just wanted to mostly remind you that you will not be able to return your products to the supplier, if they are returned to you etc.  Think about it and make plans to sell the products if something like this were to happen anytime.  Its just we have to start thinking about it during the holiday season!