The festive season usually means online shopping sprees for many, but it simultaneously also brings a familiar problem and it is the returns of purchased stocks. The returns can be due to wrong size, style or another Christmas jumper that no one wanted. Returns have become a massive part of online retail. Returns are expected to exceed £27 billion this year in the UK alone. The real burden falls on retailers who face enormous costs to process the items.
Returns are not simple as shipping goods to the store as the so-called reverse logistics involves inspecting, repackaging and often deciding whether the item is worth reselling. This is expensive and wasteful for many retailers. Some items are even thrown away if the cost of processing exceeds potential profits. It is no wonder brands like Zara and ASOS have started charging for returns.
Some innovative startups are turning up with the concept of returns don’t have to be a dead end. Companies like ACS in Scotland have turned the challenge into an opportunity. It originally focused on renting kilts, but now repairs and resells returned clothes for major brands. It has partnered with tech company Archive and has developed a system to sort as well as prepare secondhand clothes for resale or recycling. The approach reduces waste and also taps into the growing demand for sustainable fashion.
U.S.-based startup (Re)vive is making waves across the Atlantic. It has found a way to repair returned items quickly and giving them a second life through resale. It earned more than $3 million in 2024 and this proves that returns can be profitable when the stock is handled smartly.
However, the returns problem goes beyond business costs and has an environmental impact. Dr. Talia Hussain from Loughborough University highlights the way returns contribute to traffic, emissions and waste. Most packaging is not reused and too many items usually end up in landfills.
It is clear that the process of handling returns need a fresh change. Startups like ACS and (Re)vive are leading the charge. Such companies are showing that sustainability and profitability can go hand in hand. Retailers need to rethink their approach to returns and address the growing demand for greener solutions. It is time to see returns as a nuisance as well as an opportunity to do better for the planet and the bottom line.
