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American Focus > Blog > Environment > Guest Idea: Avoiding the Financial and Environmental Impact of Retail Returns
Environment

Guest Idea: Avoiding the Financial and Environmental Impact of Retail Returns

Last updated: July 23, 2025 4:55 am
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Guest Idea: Avoiding the Financial and Environmental Impact of Retail Returns
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Retail returns have become a significant challenge for businesses in recent years, with the rise of e-commerce and the expectation of free returns setting the stage for a complex and costly process. This shift has not only impacted the financial bottom line of companies but has also had a detrimental effect on the environment, as millions of tons of returned products end up in landfills each year.

The financial burden of returns is staggering, with the average cost to a business to return an item ranging between $25 and $35. This cost includes not just the shipping label but also the handling, restocking, and potential loss of value for the returned item. Industries such as big and bulky items, foreign imports, and intimate apparel struggle the most with costly returns, as regulations, high shipping costs, and resale limitations make it challenging to recoup any return costs.

Fraudulent returns have also been on the rise, with programs like “Keep it Returns” by Amazon enabling customers to keep items and get reimbursed rather than returning them to the warehouse. This has led to a significant increase in return fraud, with 52% of consumers admitting to participating in fraudulent returns at least once in their lifetime.

The environmental impact of retail returns cannot be ignored, with millions of tons of e-commerce returns ending up in landfills each year. This not only contributes to carbon emissions but also wastes valuable resources and contributes to the depletion of natural resources. Consumers are increasingly concerned about sustainability, leading to the rise of eco-friendly business practices among brands, but more action is needed to address the growing issue of retail returns.

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Several technology solutions are emerging to help retailers reduce their carbon footprint and eliminate waste from returned goods. Companies like Alternew, (re)vive, Refibered, and It Goes Forward are leveraging technology to offer repair, alteration, and resale options for returned products, reducing the need for items to end up in landfills. Additionally, donating unsellable or excess inventory to local nonprofits and schools can not only benefit those in need but also provide a tax benefit for the retailer.

In conclusion, the rising cost of returns is a significant challenge for businesses, but there are solutions available to minimize the environmental impact and create a more sustainable approach to handling returned goods. By exploring options beyond the landfill and implementing innovative technology solutions, retailers can work towards a more environmentally friendly and cost-effective return process. Postmates, a popular food delivery service, has seen tremendous success over the years. One key player in their journey to success is employee #15, who played a pivotal role in building the Civic Labs team and creating the innovative food security product known as Bento. Her hard work and dedication have not gone unnoticed, as she was awarded Time Magazine’s Invention of the Year for this groundbreaking product.

As employee #15 at Postmates, she quickly made a name for herself by spearheading the creation of the Civic Labs team. This team was dedicated to using technology to address social issues, particularly in the realm of food security. Recognizing the growing need for accessible and affordable food options, she set out to develop a solution that would revolutionize the way people access and consume food.

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The result of her hard work and innovative thinking was Bento, a food security product that allows users to easily order and receive affordable, nutritious meals through the Postmates platform. Bento combines the convenience of food delivery with the mission of ensuring that everyone has access to healthy and affordable food options. This unique product caught the attention of Time Magazine, who named it Invention of the Year in recognition of its impact on food security and accessibility.

Her leadership and vision have not only transformed the way people think about food delivery but have also made a tangible difference in the lives of countless individuals. By leveraging technology and innovation, she has helped to address a critical social issue and improve access to nutritious meals for those in need.

As she continues to push boundaries and drive positive change within the food delivery industry, it is clear that her impact will be felt for years to come. Employee #15 at Postmates has proven that with dedication, creativity, and a commitment to social good, anything is possible. Her work with the Civic Labs team and the creation of Bento serve as a testament to the power of innovation in addressing important social issues.

TAGGED:avoidingenvironmentalfinancialGuestIdeaimpactretailreturns
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