Ever heard of Bracketing? Snap and Send Back? Retail Borrowing? These emerging trends are contributors to a growing returns culture that saw 1.9 million packages returned in one day in the USA alone. Learn more about the true impact of free returns policies below. It’ll come as no surprise that Black Friday is the biggest shopping day of the year. Every year, it seems as though the major holiday season sales just get bigger and bigger and the promotional periods longer – I saw a store advertising their Black Friday sale on the first week of November! But really, why am I even surprised? It’s been a devastating year for a lot of businesses with the impacts of the pandemic, and this has had knock on effects on jobs and people’s lives. The sales this season will be unmatched, just like they’ll be topped next year and the year after, and probably the one after that too. But are the holiday sales actually that bad for the planet? What if you’ve been hanging out to buy one thing all year and you know you can get it on sale during Black Friday? I say, make the most of it. But of course, shop consciously and buy only what you need. There is another side to these promotional events that is a huge drain on our environment. And we rarely think about it – it’s the culture we’ve built around free returns, ‘returns culture’. What do I mean by ‘returns culture’? Returns culture describes increased consumer behaviour in which people order items they intend to return. Whether they buy multiple sizes or colours in order to get the perfect fit, or just want to have a look at something, this behaviour is growing more common, due to the increase in free returns or money back guarantee policies offered by many online stores. In fact in 2020, 1.9 million packages were returned on National Returns Day (January 2) in the USA alone. Customers also commonly purchase clothing online with the firm intention of returning part of their order – a global consumer survey conducted in 2020 found that this is true of 40% of respondents between the age of 21-44. Snap and Send Back: 10% of consumers in the UK buy clothes online and return them once they’ve posted a photo of their outfits on social media. There’s also another horrifying trend, of ordering products online with the intention of returning their entire order once they have tried the items on and posted a photo on social media. A report conducted found that this accounts for 10% of consumers in the UK who bought clothing online. A phenomenon known as Snap and Send Back, retail borrowing, wardrobing or sometimes renting. Another phenomenon? Bracketing - it is basically when someone buys a piece of clothing in one size larger and one size smaller than what they think they might be so that at least one of them fits. Convenience, at a cost. Are businesses training their customers to return products? In a highly competitive online market, businesses have to stand out so they get your attention. So, it is really no surprise that free returns policies are common practice. However, in some cases, they are also law. EU legislation, for example, states that customers can return their purchases within 14 days of purchase (no reason required) and receive a full refund. In the USA, there doesn’t appear to be any federal laws which impact returns and refunds, only that these policies should be clearly listed for consumers. In New Zealand however, the Consumer Guarantee Act states that sales are final and that businesses don’t have to give you a refund or exchange if you have changed your mind, your circumstances change, or you find cheaper products elsewhere. The reality is that a lot of businesses want to give great customer service, so they’ll probably allow returned or exchanged goods even if they don’t have to by law. Again, they want to stand out and make their customers happy - just like we do 😊 The true cost of ‘free returns’ Globally, most beauty returns are rarely resold, regardless of whether they have been opened or not, and instead head to landfill due to health and safety concerns or unsaleable stock (imagine if you bought mascara that had already been used or opened?). When it comes to clothing and other goods, depending on their condition they can either be distributed back to the stores to be re-sold, shipped to discount stores or outlets, donated to charity or sent to landfill (this process is also known as reverse logistics). There are cases of luxury brands burning or dumping returned items to protect their brand value. In fact, ABC News reported that Burberry has destroyed more than $150 million worth of products over the last 5 years. Let’s focus on the carbon footprint involved with transporting the returned product for a second. According to an article published in Forbes “worldwide, approximately 17 billion items are being returned every year. This totals to 4.7 million metric tons of CO2 emitted yearly”. This article was published in 2019 so it’s likely this figure has increased since then. Another piece of research from returns logistics firm Optoro, found that returns in the USA alone creates over 15 million metric tons of carbon dioxide emissions every year. That’s about the equivalent in emissions to three million cars. Then there is the cost to businesses. GlobalData, an analytics company, estimates that the returns market in the UK will cost businesses £5.6 billion pounds by 2023 from transportation, sorting and disposal. The National Retail Federation in the USA estimates the cost of returns amounts to $101 billion. All of this, without even accounting for the impact that making those products had in the first place. From the materials used, machinery and people power required to make them, greenhouse gas emissions through freighting them around the world, the shipping materials involved and much more. Is there a chance that return culture is creating over production? Yes, probably. If businesses start to sell more because people commonly over-order, but most of these are returns, businesses may struggle with inventory management and can over produce products for their next year. Let’s talk about solutions It’s a complex problem and one that can quickly make us feel like it’s all a bit of a mess. And it is … BUT the good news is that there are businesses committed to making a difference and you can help too. Businesses need to: start by producing good quality goods that will last and don’t need to be returned because they’re faulty. reconsider their returns policies to discourage unnecessary returns. be transparent about how they process returns. At Ethique, our returns page has the following information which states what happens when our customers return products. We are trying to front foot the potential for returns by asking to have a chat first. Often, we can solve problems for our customers and that way a return isn’t necessary. It’s not perfect but we’ve found a reduction in returns by doing this. Let’s cut to the chase, the environmental impact of returns is horrendous. Globally, clothing returns are rarely resold and instead head to landfill – what a monumental waste. We never resell returned bars and simply compost all returns due to health and safety measures. In countries like the USA, “the landfill waste from returns alone contributes 15 million metric tons of carbon dioxide to the atmosphere”. Read more about this here. So, how can we balance giving great customer service, helping you #giveupthebottle and try to reduce the negative environmental impact of returns? Let’s start by having a chat. There are also new businesses, such as Optoro, simplifying and helping to manage returns and divert returns from landfill. Look them up online to learn more about them but do have your greenwashing blinkers on and don’t be afraid to ask for more information. The power of the consumer As the saying goes, vote with your dollar. And it’s true – every time you purchase a good quality, long lasting product as opposed to something that has the potential to be made from poor materials, it sends a message to businesses. So, keep on doing the great work of being a conscious consumer! Consider not only your purchasing behaviour, but also your returns behaviour – are you over purchasing with the intention of returning part of your order? Would shopping in store or finding a local alternative work for you instead? Yes, it’s convenient, but at an enormous cost that someone, somewhere, must bear. Encourage businesses to reconsider their returns policies and be transparent about how they process returns. Legislation Let’s use France as an example – they have taken the lead to create legislation that bans companies from throwing away unsold goods, forcing businesses to reuse, redistribute or recycle unsold products instead. Contact your local governing body to see what anti-waste initiatives they are working on and how you could exercise your voting powers and voice too! Every dollar you spend holds the power to collectively shift the world around us - so make sure to keep that in mind whenever you are shopping and ‘vote’ with your dollar for the world you want. And remember to think twice before filling your cart with the promise of "free” returns. Discover more: How can businesses be more regenerative? What is greenwashing? What is regenerative business? References The Logistics of Online Clothing Returns in Sweden and How to Reduce its Environmental Impact. https://www.scirp.org/html/6-9202433_107229.htm#ref45 Consumer Protection NZ. https://www.consumerprotection.govt.nz/general-help/common-consumer-issues/change-of-mind/#search: Why do brands burn unsold clothes? https://ethicalmadeeasy.com/why-do-brands-burn-unsold-clothes/ There Is No Such Thing As A Free Return. https://www.forbes.com/sites/gulnazkhusainova/2019/03/28/there-is-no-such-thing-as-a-free-return/?sh=4f5209ee7135 Optoro Impact Report. https://www.optoro.com/2018-impact-report/ Tackling the Unsustainable Rate of Returns. https://eco-age.com/resources/tackling-the-unsustainable-rate-of-returns/ Value of online returns to rise to £5.6bn by 2023, driven by clothing & footwear. https://www.globaldata.com/value-online-returns-rise-5-6bn-2023-driven-clothing-footwear/ National Retail Federation: Customer Returns in the Retail Industry. https://nrf.com/research/customer-returns-retail-industry Reverse Logistics Quantitative Models for Closed-Loop Supply Chains. https://link.springer.com/book/10.1007%2F978-3-540-24803-3 Landmark French law will stop unsold goods being thrown away. https://www.theguardian.com/world/2020/jan/30/france-passes-landmark-law-to-stop-unsold-goods-being-thrown-away