Sustainability is an increasing concern for every retail business, and for a good reason. Food, apparel, textiles, packaging materials and other consumer products not only cause environmental impacts as they’re produced and transported, but they often end up in landfills.

With their trendy offerings and short product life cycles, fashion retailers face special scrutiny today from government regulators, shareholders and educated consumers. Much has been written about the environmental impacts of fast fashion — and, in response, retailers are stepping up their use of eco-friendly fabrics, encouraging clothing donations and re-use, and focusing on supply chain sustainability.

One clear target for fashion retailers who want to operate greener? Optimizing the returns process. In the United States alone, every year 2.6 million tons of returned clothes end up in landfills. Recently, there’s a growing trend among retailers to simply discard some product returns on receipt, because the cost of processing and re-merchandising them is greater than the potential profit. In 2022, 9.5 billion pounds of returns worldwide were sent straight to landfills. Some experts estimate that one in four returned products are automatically landfilled — and the rate may be even higher for fashion apparel.

Not only does an inefficient returns process contribute to landfill waste, but it also increases a fashion retailer’s overall environmental footprint. For example, 12% of ASOS’s total carbon footprint results from its returns management process. The carbon emissions associated with returns typically add up to 30% of the emissions of initial delivery.

There are a number of practical actions fashion retailers are already taking to reduce returns. Some fashion retailers are charging return fees and tightening their return policies. From offering proactive sizing recommendations to using virtual-reality fitting rooms, many retailers are also helping shoppers choose the right apparel size during the purchasing process.  

But the best way to minimize the environmental impact of returns is to accelerate, streamline and digitize the end-to-end returns management process — so apparel is quickly returned, processed and made re-available for purchase. Statistics indicate that returns are growing, not diminishing. But if retailers can drive significant costs, time and errors from their returns management process, the carbon footprint of returns will be greatly reduced, including fewer clothes sent to landfills.

Greater visibility + intelligence = greater sustainability

Blue Yonder has the ideal formula for increasing the sustainability of fashion returns. Our digital returns management capabilities enable a disciplined, automated process and real-time visibility for fashion retailers. With Blue Yonder, returns are tracked in real time and smartly managed with artificial intelligence (AI). In seconds, fashion retailers can strategically and profitably decide what to do with a given returned item, then act on that optimal decision immediately. One of the main benefits of digitizing the returns management process via Blue Yonder software is speed. Another is profitability. At every step, time and costs are intelligently driven out of reverse logistics.

For example, while nearly a third of retailers require customers to initiate a product return by contacting customer support — and others include a printed label in every package — Blue Yonder enables a digitized, label-less process.

This digital process creates real-time transparency and ensures the right resources are in place to support end-to-end returns management, including labor. The product’s route is optimized, and the retailer knows exactly when it will arrive back at the warehouse. Once it’s there, automated rules help to quickly assess the return, verify it and send it to the next destination — the right retail shelf or warehouse aisle, not the dumpster. Certain high-demand fashion items can be prioritized by the receiving team, to quickly get those products back on sale and speed up revenue recapture.

For items that are flagged as damaged, associates can quickly decide to repair them, offer them to shoppers at a deep discount, or categorize them for proper recycling. Fashion retailers like Urban Outfitters are beginning to offer reclaimed or re-imagined clothing items that are constructed of fabric or garments that might otherwise be sent to landfills. This is the kind of innovation that’s unlocked by digitization.

Delivering greater decision speed and quality is only part of Blue Yonder’s value equation. Across the returns management process, Blue Yonder software minimizes the use of paper, such as return forms, packaging and labels. Blue Yonder solutions also reduce road miles, eliminate manual labor, maximize round trips and otherwise drive sustainability. 

A winning formula: Greater sustainability, higher profits, happier shoppers

In addition to cutting costs, accelerating process steps and creating environmental benefits, Blue Yonder’s returns management solutions also increase shopper satisfaction. Consumers enjoy maximum ease and convenience by using digital returns portals and drop-off kiosks.

Research has shown that 66% of consumers consider sustainability when they make a purchase. When fashion retailers demonstrate a commitment to environmental responsibility in their returns management process, they’re making their shoppers happier in multiple ways.

Optimizing the fashion returns process has proven to be good for the planet, good for your revenues and profit margins, and good for your shoppers. No matter how you look at the perennial problem of returns, that’s a winning formula. Contact Blue Yonder to learn more.