The Environmental Impact of Returns

Every returned product tells a story of wasted resources. But the root cause is often preventable: inaccurate or incomplete product information that leads to mismatched customer expectations.

Fred de Gombert, President

Akeneo

2. Unusable products sit in landfills

Not all returned products are refurbished and restocked. Many are discarded due to damage, contamination, or simply logistical or financial challenges; in 2022 alone, 9.5 billion pounds of returns were sent directly to landfills.

When customers return items, especially in industries like fashion and consumer electronics, the products are not always in resalable condition. Even if the items are unused or in near-perfect condition, restocking them can be expensive and labor-intensive; companies must inspect, repackage, and repair the goods, which requires resources many businesses aren't equipped to handle efficiently, which is why, in the United States, one in four returned goods ends up in a landfill, and the amount of returned goods in landfills nearly doubled between 2019 and 2022, reaching 4.3 billion tons. 

Fast fashion and low-cost consumer goods exacerbate the problem because the cost of returning and restocking these items often exceeds their resale value. For many companies, it is cheaper and faster to discard returned products rather than reintegrating them into their supply chains, leading to significant waste.

Another factor is the lack of infrastructure for sustainable return management. Many companies lack robust systems to facilitate the reuse, recycling, or donation of returned items. Instead, returned products are often categorized as unsellable due to cosmetic imperfections, damaged packaging, or limited shelf life, even if they are still functional. In some cases, the complexity of sorting and redistributing returned goods for resale or recycling is compounded by regional restrictions or limited access to recycling facilities.

3. Excess packaging

Returns often generate even more packaging waste than the original purchase, and that’s particularly true when it comes to online returns; online shopping can produce up to 4.8 times more packaging waste than traditional brick-and-mortar stores. 

When a product is returned, it typically cannot be shipped in its original packaging alone due to the wear and tear it may have experienced during its initial journey, or simply because the customer threw out the original packaging. Companies often use additional materials like bubble wrap, packing peanuts, and oversized boxes to ensure the product arrives undamaged, especially if it will be resold or refurbished. This creates a surplus of packaging material, much of which is not recyclable or is improperly disposed of. 

Again, the complexity of reverse logistics exacerbates the issue. Items may travel long distances between customers, warehouses, and resellers, requiring multiple layers of protective packaging at each step of the journey. In many cases, the returned item might be repackaged several times before it reaches its final destination, whether that’s restocking, recycling, or disposal. Not to mention the widespread use of non-recyclable or difficult-to-recycle materials, such as plastic wraps, laminated labels, or mixed-material packaging, that further diminishes the chances of proper recycling and contributes to landfill overflow, generating waste and increasing the carbon footprint at every stage of the return process.

The Paradox of Returns

The environmental impact of returns presents a frustrating paradox.

On the one hand, consumers demand free and easy return options, with 40% ranking a smooth return process as one of the top two services a retailer should provide. On the other hand, the cost of offering these services is steep — not just financially but also environmentally, as we covered earlier.

 A simple solution is to start charging for returns to discourage this behavior, but retailers who charge for returns risk alienating customers as 63% of shoppers express negative feelings toward companies that impose return fees. 

This dichotomy forces businesses to walk a fine line between satisfying customer demands and maintaining sustainability commitments.

4 Strategies for Reducing Returns

Retailers can’t eliminate returns entirely, but they can reduce their frequency and mitigate their environmental impact through smarter practices. Let’s take a look at four actionable strategies to do so.

1. Provide in-depth, accurate sizing information

When product descriptions include accurate measurements, high-quality images, videos, and information about materials, care instructions, or compatibility, customers can better assess whether the product suits their needs before buying. Detailed size guides, for example, can reduce returns in the fashion industry where sizing is the number one reason for product returns.

By addressing common questions and potential concerns upfront, customers are less likely to experience "buyer’s remorse" if they know exactly what to expect from their purchase. Regularly updated information is particularly crucial for products with frequent changes, such as tech gadgets or seasonal items. 

When customers receive a product that matches their expectations set by the provided information, they are more likely to keep the item and be satisfied with their purchase. Including user reviews and ratings alongside product information allows potential buyers to learn from others' experiences, making them less likely to order items that may not meet their specific requirements. In the long run, accurate and thorough product information not only lowers return rates but also enhances customer satisfaction and loyalty.

2. Offer hybrid experiences, like in-person drop-off points or refurbishment centers

Online shoppers are more than three times more likely to return items than in-store shoppers, often because they cannot evaluate products as thoroughly as they would in person. By integrating physical touchpoints like drop-off locations, retailers can simplify the return process for customers while reducing the need for additional packaging and shipping resources. These local drop-off points also enable retailers to consolidate returns, reducing the carbon footprint of transporting individual items back to centralized warehouses.

Refurbishment centers can also amplify these benefits by giving returned items a second life. Instead of automatically discarding products, retailers can assess, repair, and prepare them for resale or donation, thus minimizing waste. These centers also allow for faster processing of returns, enabling retailers to resell items sooner, often at a reduced cost that appeals to price-conscious shoppers. 

Combining online convenience with in-person solutions creates a more sustainable approach to managing returns, cutting down on waste and emissions while fostering a positive customer experience. Hybrid models ultimately provide a win-win solution, addressing both customer expectations and environmental concerns.

3. Partner with sustainable reverse logistics organizations

Don’t want to try tackling sustainable reverse logistics on your own? You’re not alone.

There are many organizations, Happy Returns for example, that specialize in reducing waste by implementing efficient systems for refurbishing, recycling, or reselling items, ensuring that fewer products end up in landfills. They often use advanced technologies like AI and machine learning to analyze return patterns, streamline sorting processes, and identify the most sustainable outcomes for returned goods. By collaborating with such partners, retailers can reduce the carbon footprint associated with reverse logistics, as these organizations often consolidate shipments and utilize eco-friendly transportation methods, without having to develop their own methods and processes from scratch.

Sustainable reverse logistics organizations can also help retailers implement circular economy practices, where products and materials are reused or recycled rather than discarded. For example, they can facilitate the donation of unsellable but functional items to charities or the repurposing of materials from damaged products, not only minimizing waste but also enhancing a retailer’s reputation by demonstrating a commitment to sustainability. 

These partnerships also allow businesses to focus on their core operations while ensuring that returns are managed responsibly, meeting both environmental goals and consumer expectations for ethical practices. In the long term, this approach can reduce costs associated with waste management and improve customer loyalty by aligning with the growing demand for environmentally conscious business practices.

4. Ensure product information is localized and translated to reduce the risk of customer confusion

When product descriptions, specifications, and usage instructions are translated into the local language, shoppers are more likely to understand the product's features and limitations, reducing misunderstandings or incorrect expectations. Providing sizing charts in local standards or using familiar terms for materials or functionality helps shoppers make better-informed decisions, decreasing the chances of disappointment when the product arrives.

Adapting measurements, currencies, and terminology to match the norms and preferences of the target market builds trust and confidence with customers, leading to fewer impulsive or uncertain purchases that are more likely to be returned. Clear, culturally appropriate communication reassures shoppers that the product will meet their expectations and is suited to their environment or lifestyle. Electronics with instructions tailored to regional power standards or apparel with locally relevant styling tips are less likely to result in confusion or dissatisfaction. 

By removing barriers to understanding and aligning product details with customer expectations, retailers can create a more seamless shopping experience, reducing the need for returns and fostering greater customer satisfaction and loyalty.

Mitigating Returns to Help Your Planet & Profits

The environmental impact of returns is undeniable, from the emissions generated by transportation to the waste created by excess packaging and discarded goods. While consumer expectations for easy returns pose a challenge, businesses have the tools to mitigate their environmental footprint.

By offering accurate sizing information, embracing hybrid shopping experiences, partnering with sustainable logistics organizations, and ensuring precise product information, retailers can significantly reduce the volume and impact of returns.

Every return avoided is a step toward a more sustainable retail industry. By prioritizing these strategies, businesses can balance customer satisfaction with environmental stewardship — proving that convenience and sustainability can coexist.

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Casey Paxton, Content Marketing Manager

Akeneo