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Think Twice Before You Return: The Hidden Environmental Cost of Online Returns

Find out the hidden costs of online returns and how they harm the planet. In this article, we dive into their environmental impact and share a brilliant solution to transform your business and reduce return costs. Stay tuned for insights that can make a difference!

Jan 25, 2025
The Hidden Environmental Cost of Online Returns
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You’ve probably returned something you bought online—it’s quick, easy, and doesn’t cost you a thing. But what if I told you those “free returns” are far from free? Each one comes with a heavy price—paid by businesses, our environment, and the planet we call home. What happens after you click “return”? It’s not as harmless as you might think. Keep reading to uncover the true impact of online returns and discover how technology is leading the charge toward a more sustainable shopping future. This is a story you won’t want to miss.

Introduction

Ever returned something you bought online? Maybe it didn't fit, or you just changed your mind. Seems simple enough, But what you might not realize is that those seemingly easy returns have a surprising impact on our planet. From gas-guzzling trucks driving across the country to overflowing landfills, the environmental cost of returns is a hidden problem that we all need to be aware of.

This problem isn't just up to shoppers, though. Businesses can make a big difference too. This article will explore how your return decisions and business practices can harm the environment and offer some simple ways to make more sustainable choices. So, the next time you're tempted to hit that "return" button, or if you're a business looking to improve, take a moment to consider the bigger picture.

The Environmental Impact of Online Returns

So, we’ve talked about how returns can be a problem. But just how big is the problem? The truth is, the environmental impact of online returns is huge, especially when it comes to clothes.  

When you return something, it doesn't just magically disappear. It starts a whole chain of events that uses up a lot of resources and creates pollution. First, it has to be packaged up again. Then, it's put on a truck, maybe even a plane, to travel back to the warehouse or store. All that transportation burns fuel and releases harmful gases into the air, contributing to climate change.  

And get this: a lot of returned items can’t even be resold. Sometimes they're slightly damaged, or the packaging is messed up. In fact, studies show that a significant portion of returned goods end up in landfills. This means that all the resources used to make that item—like water, energy, and raw materials—were wasted. It’s like throwing money and resources directly into the trash!  

The fashion industry is a big part of this problem. Online clothing stores often have really high return rates. Each year, 92 million tonnes of textile waste are generated, with most of it ending up in landfills. Out of the 100 billion garments produced annually, this means the equivalent of a rubbish truck filled with textiles is dumped every second. The global emissions from the apparel industry are expected to increase by 50% by 2030. Here are some facts to really put things in perspective:

High Return Rates: Online clothing purchases are returned at much higher rates compared to items bought in physical stores. This is often due to challenges like sizing, quality discrepancies, or unmet expectations. The ease of returning items online further contributes to this trend, making it a significant issue for retailers.

Cost of Returns: Returns are a costly process for retailers, involving expenses like shipping, restocking, and dealing with items that cannot be resold. These costs directly impact profit margins and create additional logistical challenges for businesses.

Environmental Impact: The process of handling returns has a substantial negative impact on the environment. It involves additional transportation, packaging waste, and disposal of unsellable items, contributing to increased carbon emissions and landfill overflow. This highlights the urgent need for sustainable solutions in managing product returns.

These numbers are pretty shocking, and they show just how expensive returns are for our planet. By understanding the environmental impact of online returns, we can all start making smarter choices and help protect our environment.

Why Do We Return So Much Stuff Anyway?

So, we know returns are a big problem for the environment. But why do people return things in the first place? Understanding the reasons behind returns can help us find ways to reduce them. Here are some of the most common reasons, especially when it comes to clothes:

  • Sizing and Fit: This is a HUGE reason why people return clothes. You might order a shirt in your usual size, but when it arrives, it's either too big, too small, or just doesn't fit right. This is even trickier when shopping online because you can’t try things on before you buy them. Things like different brands having different sizing standards make it even harder. This is where accurate body measurements become really important. If stores could provide more precise size charts or even tools to help you measure yourself correctly, it could seriously cut down on returns due to sizing issues. 

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  • Item Doesn't Look Like the Picture: Sometimes, what you see online isn't what you get in real life. The color might be different, the fabric might not feel as nice as it looked in the picture, or the item might just not look as good on you as it did on the model. Good quality photos and videos, showing the item from different angles and in different lighting, can help avoid this.  
  • Changed My Mind: Sometimes, people simply change their minds after buying something. Maybe they found something they liked better, or they just decided they didn't really need the item after all. This is a common reason for returns, especially for impulse purchases. 
  • Damaged or Defective Items: Occasionally, items arrive damaged or have defects. This is obviously a valid reason for return, and it highlights the importance of good packaging and careful handling during shipping.  
  • Wrong Item Sent: Sometimes, mistakes happen, and the wrong item is sent to the customer. This can be frustrating for both the customer and the business, and it adds to the environmental impact of returns.  

As you can see, there are many reasons why people return items, especially clothes. By understanding these reasons, both shoppers and businesses can take steps to reduce the number of returns and help protect our planet. For example, businesses using better technology, like detailed size charts based on actual body measurements, virtual try-on tools, and high-quality product images, can help customers make more informed purchase decisions and reduce returns due to fit or appearance.  

'Free Returns' Fuel Environmental Harm

We often see "free returns" advertised as a great perk of online shopping. It sounds like a win-win: you can buy whatever you want and send it back without paying extra if you don’t like it. But what many people don't realize is that "free" doesn't actually mean free. Someone, somewhere, is paying for the cost of that return, and ultimately, our planet pays a price too. When returns seem "free," it can encourage people to buy more than they need, knowing they can easily send things back. This leads to even more shipping, more packaging waste, and more items ending up in landfills. So, while "free returns" might seem convenient for shoppers, they can actually have a big negative impact on the environment by increasing the overall number of returns.

'Free Returns' Fuel Environmental Harm

Return Logistics and Where Your Returns Really Go

When you return something, it starts a whole process called return logistics. Regular logistics is all about getting products to customers. Reverse logistics is the opposite: it's about managing the flow of products back from customers to the seller. This includes everything from picking up the return to sorting it, inspecting it, and figuring out what to do with it. This whole process uses up a lot of time, energy, and resources, adding to the environmental cost.

Where Do All These Returned Clothes Go?

This is where things get a little uncomfortable. You might imagine that your returned clothes are simply put back on the shelf for someone else to buy. But the truth is often much different. Here’s a breakdown of what can happen to those fashion products we return, with some hard numbers to give you a clearer picture:

  • Reselling (Sometimes, but not often): The resale of returned clothing varies significantly based on factors such as the item's condition, brand policies, and market demand. Research indicates that less than half of returned apparel is resold at full price. This is primarily because many returned items require inspection, cleaning, or repackaging, which can be time-consuming and costly. Additionally, some items may go out of style or become obsolete before they can be resold. Consequently, a substantial portion of returned clothing is either discounted, redirected to secondary markets, or, in some cases, disposed of through incineration or sent to landfills.
  • Refurbishing or Repairing (Limited): According to the Fast Company article, the percentage of returned clothing that undergoes refurbishing or repair before being resold is relatively low. Retailers often avoid refurbishing or repairing returned items due to the costs involved in inspecting, cleaning, and processing them, as well as the logistical challenges. This results in a majority of returns being disposed of or redirected to secondary channels rather than repaired or refurbished.
  • Liquidation (More Common): Determining the exact percentage of returned clothing that is liquidated is challenging due to variations in retailer practices and the lack of publicly available data. However, it's evident that a significant portion of returns are directed to liquidation channels. For instance, the National Retail Federation reported that in 2023, the total return rate for the retail industry was 14.5%, amounting to $743 billion in merchandise returns. Given the high costs and logistical challenges associated with processing returns, many retailers opt to liquidate these items to recover a portion of their value. While precise percentages are not specified, the practice of liquidating returned goods is a common strategy to mitigate losses from returns. These liquidators then sell the items at deep discounts to off-price retailers, online marketplaces, or even overseas. This adds even more shipping and handling to the item's journey, further increasing its environmental impact.
  • Landfills or Incineration (A Disturbing Reality): This is the most troubling outcome. A significant portion of returned clothing ends up in landfills. In the United States, it's estimated that approximately 2.6 million tons of returned clothes were sent to landfills in 2020 alone. This is primarily because the cost of processing and reselling returned items often exceeds the expense of disposing of them. Additionally, a study by the British Fashion Council’s Institute of Positive Fashion found that more than 50% of returned clothing that cannot be resold is sent to landfills, with another 25% being incinerated. These practices contribute significantly to environmental pollution and highlight the challenges within the fashion industry's return and waste management systems.

The Hidden Environmental Cost of Online Returns

Think about it: that cute blouse you returned because it didn't quite fit might now be sitting in a landfill, polluting the environment. Or it might be on a long journey overseas, contributing to more pollution from transportation. This is the hidden side of returns, and it’s something we all need to consider.

A Smarter Way to Shop and Sell Clothes

So, we’ve talked about how big of a problem returns are for the environment. But what can be done about it? One smart solution is using technology like Shaku body measurement.

Shaku helps businesses solve the biggest reason for clothing returns: bad fit. By providing accurate body measurements, Shaku helps customers find the right size the first time. This means fewer returns because clothes actually fit as expected. Shaku helps businesses to:

  • Fewer Returns: When customers get the right size from the start, they don’t need to return items. This cuts down on all the negative environmental impacts of shipping returns back and forth.
  • Happier Customers: Customers who find clothes that fit well are happier and more likely to buy from that business again.
  • More Sales (Higher Conversions): By helping customers find their perfect fit, Shaku can also help businesses sell more clothes. When people are confident about sizing, they’re more likely to complete a purchase.

In short, Shaku offers a win-win solution. It helps businesses reduce returns, which is good for the environment, and it also helps them boost sales by making customers happier and more confident in their purchases. It’s a smart way to make online fashion more sustainable.

What We review on The Hidden Environmental Cost of Online Returns

In this article, we’ve explored the hidden side of online returns and how they impact our planet. We’ve seen how seemingly simple returns can lead to extra shipping, packaging waste, and items ending up in landfills, wasting valuable resources. We’ve also learned that the biggest reason for clothing returns is poor fit, and that technology like Shaku body measurement can help solve this problem by helping people find the right size from the start. Both shoppers and businesses have a role to play. By being more careful about our purchases and using tools that promote accurate sizing, we can all help reduce the environmental impact of online shopping and create a more sustainable future for fashion.

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