The analysis uncovered that on average, 30 per cent of online purchases are returned, contributing to up to 24 million metric tonnes of CO2 emissions each year. Online shopping incurs nearly triple the return rate of in-store purchases, significantly amplifying emissions and waste through additional delivery and packaging, as per the report ‘The Environmental Impact of Returning Online Products’.

In 2021, returns constituted 16.6 per cent of total US retail sales, amounting to a cost of $4.583 trillion, marking a 6 per cent increase from 2020. Moreover, in 2022 alone, over 9.5 billion pounds of returned products were sent directly to landfills as reselling was deemed less cost-effective.

The report highlights the fashion industry as the largest contributor to returns, with customers returning up to 40 per cent of online garment purchases. Notably, US consumers identified clothing (26 per cent), bags (19 per cent), shoes (18 per cent), and accessories (13 per cent) as the most frequently returned items.

Despite 66 per cent of consumers expressing a desire to shop more sustainably, the report emphasizes the need for businesses to refine their returns processes to enhance customer experience and mitigate environmental impact. The study dissects the impact of online returns through transport and logistics, excessive packaging, and the eventual disposal of products in landfills.

Transport-related emissions from returns can add up to 30 per cent more than the initial delivery, with return parcels often traversing international distances. Online shopping generates 4.8 times more packaging waste than brick-and-mortar stores, with returned products requiring additional materials, further exacerbating plastic waste—a majority of which ends up in landfills.

The fashion industry, plagued by ‘wardrobing’ and fast fashion, faces significant challenges in managing returns, often resorting to landfill disposal due to the high cost of resale and the degraded quality of materials used in production.

The report calls for a collective effort from both consumers and businesses to reduce the environmental impact of online returns. Strategies such as improving the sustainability of packaging, optimising return processes, and encouraging consumers to make more mindful purchasing decisions are suggested as ways to align with growing sustainability concerns among shoppers.

As the rate of returns continues to outpace revenue growth for 91 per cent of businesses, addressing the environmental and economic implications of online shopping returns becomes crucial for the retail industry's sustainability efforts.

Fibre2Fashion News Desk (DP)