What: The rate of returns is increasing as e-commerce gains traction.

Why it is important: Retailers need to change return systems for the sake of the environment and the bottom line.

Historically, retailers wanted to make returns as easy as possible for shoppers in the name of customer service. Returns incur a cost for retailers, and at the same time, are not very sustainable. According to a survey done by AlixPartners, 71% of American consumers are more environmentally aware, with 28% stating that it impacts their buying decisions.

The problem is that customers have not made the connection yet that most of their returned products do not end up back on a shelf, but rather these items tend to be liquidated, destroyed, or sent to a landfill. In addition, there was an estimated 16 million metric tons of carbon dioxide emitted from the transportation of returns last year.

Retailers don’t want to be the first ones to act when taking away free or easy returns, but in reality, it is not a sustainable business model. Some retailers will allow consumers to keep their unwanted items, but this can result in negative brand awareness as it will end up super discounted on resale sites.

Creative returns solutions

• Give the role of returns management to a sustainability person rather than a supply chain manager.
• Highlight the financial impact that reruns have on the bottom line.
• Partner with companies like Oporto that help liquidate returned inventory through other channels.
• Increase customer awareness to the environmental impact of their purchasing decisions.

Don't make it free, don't make it easy_ How retailers can support sustainable returns