Burned, buried, forgotten?

Returns have long been a cornerstone of e-commerce, offering customers peace of mind when making online purchases. But as a recent investigation into Shein’s handling of returns reveals (read full story here), the way we manage this critical process has far-reaching implications – for businesses, consumers, and the planet.

Is the current approach to returns truly worth the cost?

Photo: Aftonbladet

The unseen impact of returns

The report on Shein’s return practices shines a spotlight on an uncomfortable truth: a significant portion of returned items never make it back to shelves. Instead, they’re discarded, recycled, or left in limbo. This isn’t just a matter of inefficiency – it’s a reflection of deeper systemic issues:

• Environmental Impact: Discarded returns contribute to waste and pollution, undermining efforts toward a circular economy. According to industry estimates, the volume of returns discarded annually is staggering – enough to fill the equivalent of 23 Empire State Buildings with clothing and products that will never see a second life. In some cases, products that have traveled thousands of kilometers are burned in open pits, such as in the deserts of Chile, where fast fashion waste piles up, fueling an environmental crisis.
• Lost Value: Products that could be resold or reused are instead written off, representing a missed opportunity for revenue and resource conservation.
• Consumer Trust: Shoppers increasingly expect transparency and sustainability from brands. When these expectations aren’t met, trust erodes.

Are we truly comfortable with these trade-offs? Returns aren’t just a logistics problem – they’re a mirror reflecting how some businesses still prioritize sustainability, efficiency, and accountability.

Shifting towards sustainability

While Shein’s practices may be an extreme example, the challenges they highlight are not unique. Across the e-commerce landscape, returns are often treated as an afterthought, leading to:

• Inefficient processes that prioritize speed over sustainability.
• A lack of transparency about where returned items end up.
• Missed opportunities to integrate returns into broader business strategies.

But here’s the good news: we don’t have to accept the status quo. By investing in better systems, fostering collaboration, and rethinking our approach to returns, we can transform them from a pain point into a strategic advantage. The question remains: why haven’t we acted sooner?

Transparency drives change

Transparency is the first step toward meaningful change. Consumers want to know what happens to their returns, and businesses that provide this clarity can build trust while setting themselves apart in a crowded market. Here’s how the industry can take action:

1. Prioritize resale and reuse: Ensure that as many returned items as possible are reintegrated into the supply chain.
2. Invest in efficient systems: Streamline return processes to minimize waste and maximize value.
3. Communicate honestly: Be upfront with customers about your return policies and the journey their returned items will take.

Transparency isn’t just good for the environment – it’s good for business. Shoppers are more likely to remain loyal to brands that align with their values. But to unlock this potential, we must first commit to change. Is that commitment worth making? Absolutely.

Returns as opportunities for change

Imagine a future where every return is an opportunity:

• For businesses: To recover value, build loyalty, and showcase their commitment to sustainability.
• For consumers: To feel confident that their returns contribute to something positive rather than creating waste.
• For the planet: To reduce waste, conserve resources, and move closer to a circular economy.

The recent spotlight on Shein’s return practices is a wake-up call. The current system isn’t sustainable, but it gives us a chance to reflect, innovate, and lead the way toward a better future for e-commerce. The real question is: are we ready to take that step?

Let’s build something better – Together

The conversation about returns is bigger than any one company. It’s about redefining how we think about sustainability, transparency, and value in e-commerce. As we rethink returns, let’s not just focus on fixing what’s broken – let’s build something better. Because in the end, the question isn’t whether change is necessary – it’s whether we’re ready to embrace it.