Part 2/7:
The Hidden Cost of Free Returns
Recent statistics reveal that a staggering 8 billion pounds of returns were disposed of in 2023 alone—an equivalent of one pound of waste for every seagull in a representative landfill clip. The irony of this situation is difficult to ignore. While the consumer often views free returns as a seamless part of their shopping experience, the reality is that it comes at a substantial cost to retailers, who struggle to manage the logistics of returns. Retailers are caught in a cycle where they must either absorb the cost of returns, which can be as high as 30% of a purchase’s original value, or pass these costs onto consumers through higher prices or reduced quality in products.