Sustainability Insights by Maddie Carlson (Dec. 2024)

One of the leading environmental issues plaguing the holiday season is the waste of returned items. More commonly than not, returned products are destroyed and discarded, regardless of their condition. Optoro, a return logistics platform, reported that approximately 3.5 billion products are returned annually in the United States, and about 80% end up in landfills. This practice is a massive waste of resources and contributes to an unhealthy and unsustainable planet, which we should try to avoid at all costs.

One of the most effective ways to promote sustainability during the holiday season is to reduce returns in general. This can be achieved through better product descriptions, sizing guides, and improved customer education, such as instruction manuals. Minimizing returns can also decrease the use of single-use packaging materials, for example, bubble wrap, boxes, and labels, which contribute to excessive waste. 

The second and most important step is to have a better return program. Currently, many programs offer only one option – the landfill. The better return process generally begins with categorizing returned items based on their condition. Products in good condition are cleaned, refurbished, and resold. Items in poor condition may be sold at a discounted price or upcycled into new products.

Recycling only then comes in for damaged or beyond-repair products. These materials can then be used to manufacture new products, reducing the need for virgin resources. Partnerships with charities or non-profits can also be part of the program. Donations of lightly used items to Habitat for Humanity, GiveNKind, Soles4Souls, or local underserved communities will make a significant impact. This diverts waste and aligns with corporate environmental, social, and governance (ESG) goals.

The implementation of a sustainable return program might sound like a logistical nightmare. This outline seems great but understandably hard to comprehend in practice. A good place to start is offering it for a specific line or product before expanding. Additionally, here are a few programs already implemented for some real-world examples:    

1. Patagonia’s Worn Wear Program: Patagonia’s Worn Wear program encourages customers to return used Patagonia gear and clothing, which is then cleaned, repaired, and resold at a lower price. Items that cannot be resold are recycled into new materials.   
2. IKEA’s Buy Back & Resell Program: IKEA operates a buy-back program where customers can return gently used furniture, which is resold in the store’s As-Is section. Items that cannot be resold are responsibly recycled.  
3. Apple’s Trade-In Program: Apple accepts old devices through its trade-in program. Usable devices are refurbished and resold, while broken devices are disassembled to recover valuable components like aluminum and rare earth metals and reused in manufacturing. This process reduces electronic waste and conserves natural resources.  
4. Levi’s Second-Hand Program: Levi’s allows customers to exchange pre-owned jeans and jackets for store credit. The items are then cleaned and resold through Levi’s second-hand online platform.   
5. Lush’s Black Pot Program: Lush encourages customers to return empty cosmetic containers to stores. The pots are cleaned, melted down, and remade into new containers. This closed-loop system minimizes plastic waste and new plastic creation emissions.   
6. Madewell: Madewell accepts old jeans from any brand in any condition. The material is shredded for insulation, and store credit is given for a new pair.   

 These examples illustrate how companies across various sectors adopt sustainable practices to manage product returns, reduce waste, and support a circular economy. Manufacturing leaders have a unique opportunity to significantly improve these industry-related environmental issues through returnable program development. This approach aligns with environmental goals and resonates with the growing consumer demand for sustainable practices.