As online shopping continues to boom, a concerning trend about online returns is emerging in the shadows of the convenience it provides. Nearly half of items returned are never resold.
A new study by Rotem Roichman from Ben-Gurion University of the Negev revealed the alarming environmental impact of online shopping returns, particularly in the clothing sector.
Consumers return billions of new products to sellers each year. Surprisingly, very little research has examined the environmental impacts of returns from a full lifecycle perspective.
Hidden costs of online returns
Roichman and her team analyzed data from over 630,000 clothing items returned in the EU during 2021. She uncovered a stark reality about the fate of returned products.
The new findings, based on its very extensive dataset, show that “the environmental performance of e-commerce, where return rates are exceptionally high, may be systematically underestimated.”
What does this mean? The ‘hidden’ environmental cost of e-commerce has been largely overlooked. We’ve been focusing so much on reducing emissions from shipping and packaging, we’ve lost sight of the impact of wasted resources associated with production.
In short:
- The convenience of free and easy returns comes at a high environmental price.
- The perceived eco-friendliness of online shopping might be more myth than reality.
The fate of returned items
The research sheds light on the complex journey for returned clothing items.
It looks good on paper: Under best management practices, 77% of returned items reach a secondary consumer, while 11% are recycled, 9% are incinerated, 2% go to landfills and only 1% is lost along the way.
Unfortunately, reality paints a less optimistic picture.
In most cases:
- Only 54% of returned products reach a secondary consumer.
- 25% of returned products are recycled.
- 15% are directed towards waste-to-energy incineration.
- 3% end up in landfills, and 3% are lost along the way.
To recap: Of the 44% of returned items that never reach a second consumer, half are recycled, a quarter end up in landfills, and one-seventh are incinerated. The remaining items are “lost” somewhere in the process.
This process is unsustainable since it is a waste of resources and contributes substantially to greenhouse gas emissions.
The environmental cost of online returns
Let’s take a look at the costs associated with a standard cotton t-shirt. The emissions associated with post-return transportation, as well as processing and packaging, amounts to 236 tons of CO2 equivalent.
And that’s under best management practices. It’s closer to 208 tons under conventional, day-to-day practices. For heavier items like ski jackets, these figures jump to 442 tons and 328 tons, respectively.
But the real environmental cost lies in the production of items that go unused. For T-shirts, this amounts to 445 tons of CO2 equivalent under best practices, and a staggering 880 tons under conventional practices.
For ski jackets, these figures skyrocket to 2,619 tons and 5,178 tons respectively.
Drastic change needed, ASAP
The researchers found that the emissions from unused, discarded items are four to 16 times higher than those from the returns management process itself. This highlights an urgent need for more sustainable practices in online retail.
Thus, addressing these hidden environmental costs is crucial. To ensure a sustainable future for online retail and returns, we need to find the balance between convenience and environmental care.
It’s all about making sure that our love for the ease of online shopping doesn’t end up costing the earth.
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About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.