By Inge Bujakiewicz ‑ Baars, Head of Sustainability, Security, and Quality at ReBound Returns
In recent years, a significant trend has emerged for retailers: the rising rate of returns. Although retail sales hit their peak between Black Friday sales and Christmas gift shopping, the peak for returning items lags well into January, when the extended returns windows for Christmas gifting closes.
The growing volume of returns brings a hidden environmental cost. This is not only from a logistical point of view, with carbon emissions from transporting items back to warehouses, but also for product wastage if the returned products aren’t able to be resold to another customer.
This challenge is even more pronounced when items are being shipped and returned internationally. Fortunately, there are a number of ways that retailers can manage returns sustainably during high-volume periods.
Local sorting and grading
A highly effective way to reduce the carbon footprint of returns is through the localised sorting and grading of items. Instead of returned items being sent to their original warehouse or a central hub, they can instead be assessed closer to their return location. This cuts down on emissions associated with unnecessary transport as it reduces the need for long trips back to the item’s starting location.
This localised sorting enables retailers to quickly determine the condition of returned products to understand whether they are in a resellable condition or not. Items that are deemed suitable to be resold can be reintroduced into the local market faster, reducing overstock and waste. Items that aren’t able to be immediately resold can then be locally repaired or reconditioned ready to be returned to stock; or donated or recycled nearby.
This localised approach to returns processing reduces transport emissions and also minimises product wastage. It also enables customers to be refunded quickly as the items are checked much faster.
Returns forecasting
Capturing data throughout the returns process is crucial for operational efficiency, accurate product distribution, and customer communication. It is also a key tool enabling the accurate forecasting of returns volumes, and in particular can help retailers to factor low-emission transport solutions into their plans.
For example, rail freight options can be more eco-friendly than truck transport, emitting less CO2. However, rail transport typically requires more planning due to its infrastructure and scheduling restrictions, so proactivity is vital.
By forecasting return volumes, retailers can prioritise more eco-friendly returns logistics options during peak periods. The insight can also be used to optimise the space in transport vehicles, planning fuller loads and avoiding any empty spaces to cut down on unnecessary trips. This approach has the added benefit of also ensuring that returns are processed efficiently without any delays or bottlenecks, leading to a better experience for the end consumer too.
Optimising pre-stocking and inventory management
Returns data isn’t just useful for returns logistics, it’s also a valuable resource for inventory management. It allows brands to better anticipate the volume and type of items likely to be returned, in what volume, and when. The data can then be used to leveraged to pre-stock items in the right quantities whilst correctly anticipating future returns.
This pre-stocking approach based on returns data insight reduces the risk of overstocking, which could lead to wastage further down the line if items aren’t sold. The ability to predict returns in advance means returned goods can be factored in as part of the broader stock rather than a separate logistical challenge, keeping inventory levels sustainable.
Prioritising high-demand items in regional hubs
During peak sales and return seasons, more items will inevitably be returned. Retailers need to identify fast-moving, high-demand items through data analytics. Rather than these items being sent back to central warehouses or their original sale point, they can be retained at regional returns hubs. This ensures they can be quickly returned to stock and be made readily available for resale or redistribution.
This reduces the need for long-distance transport, cutting down on emissions, as well as the time it takes to get the product back in stock and into the hands of a new customer. By using returns data to identify which items are most likely to be resold quickly, brands can streamline their logistics and keep high-demand items closer to potential buyers.
The sustainability of retail returns, especially during peak seasons when volumes of sales and returns soar, is expected to be a key focus for retailers in 2025. Although the environmental impact can be significant, it is not insurmountable, and there are a number of strategies that brands can implement, especially when assisted by expert returns management partners, such as ReBound Returns. By addressing these key areas, retailers can navigate peak return periods with a reduced environmental impact, whilst improving agility and operational efficiency.
