In the booming world of e-commerce, returns are rising just as fast as sales. But here’s the kicker—those returns come with a price tag that’s far more than just a refunded payment. From the financial drain on margins to the massive environmental impact, the current model of managing returns is not just unsustainable—it’s costly in every sense.
A recent report by DHL Supply Chain uncovers how retailers are changing their game plans to minimize both financial and environmental waste. In this article, we’ll unpack those findings and explore how companies like SKF Tech Corp are part of the solution, not the problem.
The Growing Returns Problem
E-commerce has changed the way we shop—making it fast, easy, and convenient. But the ease of clicking “buy now” has led to a surge in product returns. Whether it’s clothing that doesn’t fit, electronics that fall short of expectations, or duplicates ordered by mistake, retailers now face mountains of returned goods.
And the numbers don’t lie:
- For every $1 billion in sales, the average retailer incurs $165 million in merchandise returns.
- 20%–30% of all online purchases are returned, compared to just 8%–10% for brick-and-mortar stores.
These returns aren’t just eating into profits—they’re also creating a serious environmental burden.
DHL’s Key Findings: Smarter Moves on the Horizon
DHL’s report “Why Retailers are Rethinking Returns to Minimise Financial and Environmental Waste” reveals that leading retailers are finally waking up to the reality—and the opportunity. Here are the standout stats:
- 47% of retailers are actively revamping their return processes to improve efficiency and cut costs.
- 44% are shortening return windows to reduce waste and increase resale value.
- 40% are prioritizing resale or reuse instead of immediate disposal or liquidation.
- 29% already track the carbon footprint of their return processes—something that’s quickly becoming a competitive differentiator.
(Source: DHL Supply Chain, 2024)
Clearly, there’s a shift underway—from reactive return policies to smarter, more intentional strategies.
The Financial Fallout of Inefficient Returns
Let’s talk dollars and sense. Poorly managed returns can:
- Slash profit margins, especially when reverse logistics aren’t streamlined.
- Create inventory black holes, where returned items sit unsold for weeks or months.
- Trigger markdowns and losses, especially in fast-moving industries like electronics and fashion.
But here’s the good news: technology is rewriting the rules.
Advanced software, automation, and AI-powered platforms are helping retailers make data-driven decisions about returns—whether it’s approving instant refunds, identifying fraudulent patterns, or optimizing resale channels. These changes can turn returns from a cost center into a value generator.
The Environmental Cost: Bigger Than You Think
Returns don’t just vanish. Every time a product is shipped back, repackaged, or discarded, it contributes to:
- Increased carbon emissions from transportation.
- Landfill waste, especially when items can’t be resold and are trashed.
- Energy-intensive processing, including inspection, restocking, or refurbishment.
In fact, DHL’s report highlights that the carbon impact of returns is finally gaining attention—with nearly a third of retailers tracking it. That’s a crucial first step toward accountability.
But what’s even more impactful? Building smarter systems that reduce the need for returns in the first place—and that’s where reuse and refurbishment come into play.
What Can Retailers Do Next?
If you’re a retailer wondering where to start, consider this:
- Audit your current returns process: Where are the delays? What’s the cost per return?
- Explore refurbishment and resale: Not every returned item is a loss. Many can be given a second life.
- Partner with specialists like SKF Tech Corp: We bring the tools, expertise, and infrastructure to handle returns smartly.
Source: DHL Supply Chain. Why Retailers are Rethinking Returns to Minimise Financial and Environmental Waste. Read the full report here.