What's Happening?
The holiday season, while a time of giving, also marks the beginning of a significant period for product returns. According to the National Retail Federation, approximately 17% of holiday purchases are
expected to be returned this year. This surge in returns is driven by the uncertainty of gift-giving and the challenges of online shopping, where sizing and color can be difficult to judge from images alone. Clothing and footwear are particularly prone to returns due to fit issues, as noted by Saskia van Gendt, chief sustainability officer at Blue Yonder. The environmental impact of these returns is substantial, as returned items often require repackaging and additional transportation, contributing to increased emissions. Joseph Sarkis from Worcester Polytechnic Institute estimates that returning an item can increase its environmental impact by 25% to 30%.
Why It's Important?
The environmental cost of returns is a growing concern for both consumers and retailers. The process of returning items involves additional packaging, transportation, and energy, which translates to higher emissions. This is particularly problematic for items that are not resold and end up in landfills. The financial implications are also significant, as the costs associated with returns are often factored into retail prices, ultimately affecting consumers. Retailers are exploring solutions such as better sizing information, 3D imaging, and virtual reality to reduce return rates. Additionally, companies like Blue Yonder are using technology to streamline the return process, aiming to minimize the environmental footprint.
What's Next?
Retailers may increasingly adopt strategies to mitigate the impact of returns. This could include charging for returns, as some companies like Amazon have started to do in certain situations. There is also potential for more widespread use of technology to assess and manage returns efficiently. Consumers can contribute by opting for in-person shopping, which tends to result in fewer returns, and by considering gift cards as a more sustainable option. The industry may also see a push towards more transparent communication about the environmental impact of returns, encouraging more responsible consumer behavior.
