With over 30% of eCommerce orders being returned globally, the environmental impact of reverse logistics is a growing concern. Consumers are also demanding more eco-friendly practices, 67% of shoppers consider sustainability when making a purchase. To meet these expectations, brands are rethinking how they handle returns with sustainability in mind.
As consumers become more eco-conscious, brands are adopting sustainable practices to minimize the environmental impact of returns. Here are some example of how brands are engaging in more sustainable returns management;
Returnless Refunds
Returnless refunds, where customers receive a refund without shipping the item back, are an increasingly common strategy to cut emissions. This method reduces unnecessary transportation and processing, particularly for low-cost or non-resalable items. Studies show that only 20% of returned products are resold as new, while the rest are either discarded, sent to liquidation, or require costly refurbishment.
This is typically done when an item would otherwise have to undergo an expensive and time-consuming disposition process. Understandably, this is a high risk option for brands because it has the potential to be abused as a policy in cases of return fraud. Therefore, brands must implement fraud prevention measures to ensure that returnless refunds don’t lead to abuse. This could be an effective tactic when coupled with AI tools to identify serial returners or suspected return fraud cases. To protect from return fraud, ReturnBear offers verified returns before refunds are issued. This way, brands can rest assured that received items are the correct/expected item and are still in new, unused and unworn condition.
Eco-Friendly Packaging & Circular Logistics
Many brands are transitioning to recyclable, biodegradable, or reusable packaging to reduce waste. According to McKinsey, switching to sustainable packaging can cut carbon emissions by up to 30% and reduce waste up to 80% compared to single-use alternatives. Compostable mailers, made from materials like cornstarch or mushroom mycelium, also break down naturally, reducing landfill waste.
Additionally, some retailers now offer closed-loop recycling programs, where returned goods are refurbished and resold rather than discarded. Brands like Levi’s, Patagonia and Timberland have built this into their customer incentive programs. The NRF found that 74% of shoppers are more likely to purchase from brands with recycling or take-back programs. Brands that own their own resale retail programs can collect and sell slightly worn clothing, contributing to the growingsecondhand apparel sales segment of the retail industry. ThredUp estimates that this segment is growing 15 times faster than the broader retail clothing sector, at $197 billion in 2023 and projected to hit $350 billion by 2028.
At ReturnBear, forward fulfillment of returned inventory that met verification and is ready for resale means that you can fulfill new orders locally with on-hand inventory from returns. This can save on shipping costs while reducing distance travelled and the associated environmental impacts.
Optimized Reverse Logistics: Cutting the Carbon Footprint of Returns
Shipping and processing returns significantly contribute to carbon emissions. Research indicates that eCommerce returns generate 15 million metric tons of CO₂ annually in the U.S. alone. To combat this, brands are leveraging regional return hubs, consolidation centers, and AI-driven logistics to shorten return routes and reduce emissions. A well-optimized returns network like ReturnBear's can cut transportation-related emissions by up to 40% while improving processing efficiency.
Brands that prioritize sustainable returns management can reduce costs while aligning with shifting consumer expectations. According to Nielson, 66% of consumers are more likely to buy from brands that offer sustainable returns solutions. As sustainability regulations tighten and consumer demand for greener practices grows, investing in sustainable returns is essential for long-term success in global eCommerce.
Returns and the Landfill Crisis
One of the lesser-known consequences of inefficient return systems is the growing landfill crisis. With millions of products being returned annually, a significant portion (especially in fashion and apparel) ends up in landfills due to damaged packaging, seasonal obsolescence, or high restocking costs. Sustainable return practices help mitigate this by increasing the lifespan of returned goods through resale, repair, or recycling. By implementing systems that extend product usability, brands reduce their waste footprint and contribute to a more circular economy.
The Rise of Green Returns Policies
To stay ahead of regulatory and consumer shifts, many brands are now adopting greener returns policies. This includes encouraging in-store returns to reduce shipping-related emissions, offering incentives for selecting eco-friendlier return options, and even charging small fees for returns to discourage unnecessary returns. These measures can help minimize environmental impact while also deterring serial returners, striking a balance between sustainability and profitability. Integrating these policies with automated return portals ensures a seamless, customer-friendly experience.
Sustainability as a Differentiator in Fashion & Apparel
In highly competitive markets like fashion and apparel, returns are frequent, and so are sustainability expectations. Leading brands are investing in tech-enabled return solutions that optimize routing and provide visibility into carbon emissions. Tools like carbon calculators embedded in return workflows can help customers understand the environmental impact of their return choices. When customers are empowered with data, they’re more likely to opt for sustainable options, such as drop-off points or store credit.
Global Impact: Meeting ESG Goals with Smarter Returns
As ESG (Environmental, Social, and Governance) reporting becomes a standard for public companies, returns present a measurable opportunity for improvement. Brands that adopt sustainable reverse logistics not only lower emissions but can also track and report on these reductions in their sustainability disclosures. This adds credibility to ESG efforts and helps brands win over both conscious consumers and responsible investors. ReturnBear’s consolidated return network enables brands to capture and report on these sustainability metrics with ease.
Brands that prioritize sustainable returns management can reduce costs while aligning with shifting consumer expectations. According to Nielson, 66% of consumers are more likely to buy from brands that offer sustainable returns solutions. As sustainability regulations tighten and consumer demand for greener practices grows, investing in sustainable returns is essential for long-term success in global eCommerce.
ReturnBear can support brands looking for more sustainable returns management, with our package-free and label-free return points, consolidation hubs and optimized shipping routes, brands can save on costs while also reducing the environment impact of their returns.
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