E-commerce CRO

44% of returned items never resold

The environmental impact of retail, particularly related to online clothing sales, often goes unnoticed. Recent research from Ben-Gurion University reveals that 22% to 44% of returned clothing items are never resold to customers. This significant statistic raises a crucial point about the sustainability of the fashion industry.

The research highlights that while consumers may be aware of fashion’s environmental footprint, there is a surprising lack of understanding regarding the greenhouse gas (GHG) emissions associated with returns. This issue is particularly pressing for e-commerce companies, as they face high costs related to returns—an average of 20% to 30% of items purchased online are returned.

The phenomenon of over-ordering—where shoppers buy multiple sizes or colors of the same item—exemplifies this dilemma. Programs encouraging such behavior, like “Try before you buy,” exacerbate the situation, leading to more returns. Notably, many consumers remain unaware that returned items do not always return to store shelves.

Sorting, inspecting, and often repairing returned products incurs costs that can exceed their retail value. Consequently, many returned items cannot be resold, leading to about 44% of those never reaching a secondary consumer. Alarmingly, these unsold items either end up in landfills, are recycled, or are incinerated, with up to 69,300 items of clothing disposed of in Europe alone.

The environmental consequences are severe: the GHG emissions from the production and distribution of these discarded items are 2 to 16 times higher than the emissions from all processes involved after a return. This data underscores the urgent need for e-commerce businesses to rethink their return policies, as both sustainability and profitability could benefit from improved handling of returns. Addressing this issue could foster a more sustainable retail environment and inform consumer choices towards responsible shopping practices.