the sustainability pact on e-commerce

Free returns has been the biggest weapon to design the e-commerce promise, ensuring positive experience and retain customers.

But this promise is not sustainable.

Not sustainable on the environment impact side, with returned inventory creates more than 44 million tons of landfill waste each year, and emits more than 27 million tons of carbon dioxide. This is not acceptable by customers that want more responsibility by brands and retailers.

Not sustainable on the revenues side, with huge impact on profitability with significant costs that generate profit warnings on lots of retailers and players.

A new deal is required between customers and retailers.

Charging for returns is not a broken promise, it's a sustainability pact.

Uniqlo, Abercrombie, Zara are on this way.

But different strategies could be designed, to give the best option and experience to the customers. Actions can be a mix:

• manage returns fee based on loyalty program, offering discount or added value services
• leverage an hybrid model engaging physical stores to manage returns evolving customer expectations. A double positive effect, reducing shipping costs and create extra opportunities into the store
• leveraging on technology and data, using new frontiers of AI to match expectations and reduce the return rate

The era of free returns come to the end, it's necessary for the environment, it's necessary for companies' profits, it's necessary for customers, so for us, that at the end will pay the bill.