Online returns may be convenient for the consumer, but at what cost to fashion retailers and the environment?

The issue of overconsumption is well-reported, with the British Fashion Council stating that there are enough clothes on the planet for the next six generations. The surge in online shopping has exacerbated this problem, but the convenience of doorstep deliveries is offset by the inability of consumers to try items before buying. Retailers must therefore offer generous return policies, but online returns can have a detrimental impact on businesses and the environment.

Why are there so many online fashion returns?

Online shopping results in nearly three times as many returns as in-store purchases, according to Invesp, with the fashion industry experiencing the highest return rates. For example, in 2018, consumers sent back up to 40% of clothing items ordered online. Factors contributing to these high return rates include items not fitting as expected or appearing different from their online depiction. Customers often resort to “bracketing,” namely purchasing multiple sizes of the same item with the intention of keeping one and returning the rest.

Additionally, some shoppers exploit return policies through “wardrobing,” where they wear an item once, keep the tags on, and then send it back. Payment systems such as Klarna further facilitate this behaviour, allowing consumers to engage in wardrobing without funds ever leaving their accounts.

Why is this such an issue?

Businesses are essentially pouring money down the drain due to their generous online returns policies. In 2022, returns cost US retailers $816bn, double the amount from just two years prior. The costly process of handling returns involves cleaning, repackaging, and potentially repairing products before they can be resold, incurring additional expenses such as shipping items back to warehouses, many of which are located overseas.

Unlike in-store returns, where items can quickly go back on the shelves for resale, the journey of online returns is far more complex. A single piece of clothing may travel hundreds of miles to reach the consumer’s doorstep, only to be shipped back to its origin, generating significant carbon emissions along the way. Optoro reports that returns in the US alone produce 16m metric tons of carbon emissions during the journey back to stores and warehouses, equivalent to the emissions of 10,000 fully loaded Boeing 747s. Shockingly, returns account for 25% of emissions in the ecommerce industry.

Online returns might never be resold

There is an even more concerning issue associated with online returns: a significant portion of returned items will never be resold. Fast-fashion items, known for their rapid turnover rate, often become outdated by the time they are returned to warehouses. Additionally, these garments, typically made from cheap synthetic materials, may not be worth as much as the cost to clean or repair them for resale. Retailers often choose to simply dispose of them.

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This has resulted in a substantial amount of waste, with Optoro estimating that returned items contribute 9.5bn pounds of landfill waste annually. The British Fashion Council found that 3% of UK returns are not resold, with 50% of these ending up in landfills and 25% being incinerated. Legislation is falling behind, allowing retailers to continue to inundate landfills with brand-new, unworn clothes.

Something needs to change

The current online returns model is unsustainable. Some fast-fashion retailers, such as Zara and Uniqlo, have begun implementing a nominal fee for online returns to encourage more mindful shopping and deter practices like wardrobing and bracketing. Brands could explore additional solutions such as providing more accurate product descriptions, showcasing greater model diversity, offering accurate size calculators, and introducing virtual reality dressing rooms. This would help consumers buy the right product the first time around, reducing the need for returns. Ultimately, it is crucial that consumers understand the environmental impact of online returns, while retailers must be more transparent regarding the return process.

By Just Style