Consumer Behavior Change

The Returns Crisis:
How to Balance Sustainability and Convenience

Modern shoppers want guilt-free consumption with minimal personal inconvenience — here are 3 ways retailers can address the returns crisis while keeping consumers happy.

Brand Provided | By Kristin Naragon | Published 3 days ago | About a 6 minute read

Image: EyeEm

Retailers and shoppers are no strangers to a good holiday sale. From Black Friday, Christmas and Memorial Day sales to everything in between, consumers are not likely to pass up a discount. However, with the influx of sales during holiday seasons, retailers need to be prepared for an influx of returns.

January, in particular, marks the great gift exchange where those unwanted socks, ill-fitting sweaters and whimsical novelty ties flood back to retailers — clogging supply chains and piling up hidden environmental costs. With 65 percent of consumers returning holiday gifts this past holiday season, brands aren’t just facing logistical nightmares — they're dealing with a full-blown crisis.

However, the returns crisis isn’t limited to just supply chain impacts. Returns wreak havoc on the environment, but the ease and convenience of online returns make it easy for consumers to turn a blind eye to the impact their behavior has on the planet and continue buying and returning at their leisure.

The hidden impacts of returns go beyond excess consumerism. For a product purchased online, a return will exponentially increase its carbon footprint and double the journey of the product. Shipping and returns collectively account for 37 percent of total greenhouse gas emissions from the retail industry, and returns alone can add an additional 30 percent to the carbon emissions of the initial delivery. Every returned item represents additional trucks on the road, cargo flights and emissions; and it’s highly likely that it ends up in a landfill, even if it’s perfectly functional or unopened.

In the United States alone, an estimated 2.6 million tons of returned goods ended up in landfills in 2020. The transportation associated with these returns contributed to 16 million metric tons of CO2 emissions, equivalent to the emissions produced by powering two million homes for a year. Unfortunately, as shoppers continue to lean on the ease of a mobile app, fast shipping speeds and the low prices of fast fashion brands, this will only increase.

The fashion industry is a prime example of the wastefulness caused by high return rates, with over half of online clothing purchases sent back. Fast fashion and low-cost, low-quality retailers exacerbate the issue — as the expense of processing returns often exceeds the resale value. For many brands, discarding returned items is more cost-effective and efficient than reselling them — resulting in massive waste and environmental harm.

Despite the environmental toll, consumer expectations tell a different story: 40 percent rank a smooth return process as one of the top two services a retailer should provide. Yet 78 percent of US consumers say that a sustainable lifestyle is important to them. In simple terms, the modern shopper wants guilt-free consumption with minimal personal inconvenience — and it’s up to retailers to strike the balance.

This means that retailers are left navigating an impossible paradox: meeting sustainability expectations while also offering the effortless return experience consumers have come to expect. Simply adding sustainability messaging to a website or touting vague eco-friendly goals isn’t enough as consumers are becoming increasingly savvy at identifying empty sustainability promises, and they expect real action.

Here are three ways retailers can address the ongoing returns crisis while also keeping consumers happy.

1. Provide in-depth, accurate product information

One of the primary reasons for product returns is mismatched customer expectations. When product descriptions include correct measurements, high-quality images, 360-degree views, videos; and comprehensive details on materials, care instructions and compatibility, shoppers can make more confident and informed purchasing decisions.

In fashion, where sizing inconsistencies are the number-one cause of returns, detailed size guides, AI-driven fit recommendations and virtual try-on tools can greatly reduce return rates. Likewise, for tech gadgets or furniture, listing exact dimensions, compatibility notes and customer-submitted reviews and photos can help set realistic expectations. Retailers should also ensure product descriptions are regularly updated, particularly for items that undergo frequent design changes or updates.

2. Offer hybrid experiences with physical touchpoints

Online shoppers return products at a significantly higher rate than in-store buyers — often due to an inability to try on, test out or visualize the product prior to purchase. By integrating physical touchpoints such as local drop-off locations, retailers can streamline the return process while reducing packaging waste and additional emissions.

Consolidating returns at designated locations can minimize the environmental impact of reverse logistics, as fewer individual shipments are required to transport items back to distribution centers. Some retailers have introduced refurbishment centers — where returned items are evaluated, repaired and resold rather than discarded. This approach not only minimizes waste but also enables businesses to recapture value from returned goods, offering resale opportunities for price-sensitive consumers.

When it comes to shopping, retailers must also consider both the customer experience and the product experience. A strong hybrid model can improve both experiences by leaning into greater flexibility. **Buy-online-return-in-store (BORIS) options, partnerships with third-party return hubs or in-store resale initiatives help retailers create a sustainable and customer-friendly approach to managing returns.

3. Localize and translate product information to reduce customer confusion

Retailers selling internationally often see increased return rates due to language barriers and differences in sizing, measurements or technical specifications; however, brands that work to educate consumers about the differences reduce returns. Providing localized product descriptions, translated instructions and region-specific details can help shoppers make better purchasing decisions and reduce the risk of returns caused by misunderstanding or incorrect expectations.

Adapting size charts to regional standards (e.g., converting US to EU shoe sizes), displaying prices in local currencies, and using familiar terminology for product functionality or materials can boost consumer confidence and reduce confusion. This isn’t a one-size-fits-all solution, though; different products will require different levels of translation. For example, electronics should feature instructions tailored to local power standards; while apparel brands can offer guidance on regional fit preferences or seasonal appropriateness.

By removing barriers to understanding and aligning product details with customer expectations, retailers can create a more seamless shopping experience. Clear, culturally relevant communication not only decreases the likelihood of returns but also strengthens customer trust and brand loyalty.

Reducing returns without compromising customer experience

Realistically, we won’t live in a world where there are zero returns. But we can work to create shopping experiences that increase consumer confidence and satisfaction, and break the unnecessary returns cycle.

As consumer expectations evolve, retailers must find a way to balance convenience with sustainability. Win-win solutions such as these help brands empower shoppers to make informed choices, ultimately reducing the need for returns in the first place.