E-commerce
How E-commerce Sites Manage Returned Items: From Electronics to Clothing
How E-commerce Sites Manage Returned Items: From Electronics to Clothing
Consumers returning items to e-commerce sites is a common occurrence. The way these returned items are handled can have significant implications for the environment and business practices. From reselling electronics as refurbished goods to donating clothing to charities, there are various methods that e-commerce sites use to manage returns. This article explores the common practices and emerging solutions for sustainable returns management.
Common Practices for Managing Returned Items
Reselling as Open Box or Refurbished - Electronics: Items that are returned but still in good condition may undergo a thorough testing and refurbishment process before being resold as open box or refurbished products. This gives consumers a chance to purchase high-quality products at lower prices, contributing to a more sustainable marketplace. - Clothing: Gently used or unworn clothing is often cleaned and resold at a reduced price, particularly through outlet sections or secondary marketplaces. This not only reduces waste but also extends the lifecycle of the products.
Liquidation
For returns that cannot be resold directly, e-commerce companies may sell them in bulk to liquidation companies or through auction platforms. These intermediaries resell the items to discount retailers or in online auctions. This practice helps manage the volume of returns and ensures that the products do not end up in landfills.
Donation
Some e-commerce companies choose to donate returned items to charities or organizations, particularly for clothing that is still in good condition. This practice aligns with sustainability goals and contributes positively to society by providing clothing to those in need.
Recycling
Items that are damaged or unsellable may be recycled. Many companies have established programs to ensure that electronic waste is disposed of responsibly. This practice helps to minimize the environmental impact of discarded electronics.
Restocking
For items that are simply returned without damage, they can be inspected and restocked back into inventory for resale. This practice ensures that the supply chain is not disrupted and that no product is wasted.
End-of-Life Disposal
For electronics that are obsolete or broken, companies may follow regulations for proper disposal, ensuring that hazardous materials are handled safely. This practice complies with environmental regulations and helps to protect public health.
Customer Service and Simplifying the Return Process
Some e-commerce sites streamline the return process by allowing customers to keep the item and issue a refund, especially for low-cost items. This reduces the hassle and costs associated with returns, making the entire process more customer-friendly.
Challenges with Returned Items
Despite these practices, many returned items still face challenges. According to Optoro, a platform used to optimize returns, nearly £250 million worth of merchandise is returned each year in the US alone. Over 2 billion kilograms of this ends up in landfills, contributing to 13 tonnes of CO2 emissions as part of the returns process.
So, why do so many returns end up in landfills rather than being resold? The answer lies in the pressure placed on retailers. Returns demand extra warehouse space, sorting effort, and often sell for marked-down prices. As a result, retailers find it cheaper and less hassle to send them to incinerators or landfills rather than resell them.
Emerging Solutions for Sustainable Returns Management
Thankfully, some solutions are emerging to mitigate the environmental impact of returns. One of the most accurate solutions is Presize, a platform that recommends accurate clothing sizes to shoppers. To date, Presize has saved 80,000 kg of CO2 by reducing returns that would eventually end up in landfills. If more shops recommend accurate sizing, returns can be significantly reduced, thereby reducing CO2 emissions.
In conclusion, the management of returned items in the e-commerce world is a complex issue that requires sustainable solutions to ensure minimal environmental impact. While there are various methods for handling returned items, such as reselling, recycling, and proper disposal, emerging technologies and practices like Presize show promising results in reducing the overall waste and carbon footprint associated with returns.