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ONLINE SHOPPING

Returns by online shoppers creating a huge environmental problem

By our News Team | 2023

Researchers say e-commerce companies are simply throwing away items returned by consumers, rather than trying to resell them.

Fuelled by the stay-at-home-culture of the pandemic and the preferences of younger consumers in particular, online shopping has risen is popularity around the world. But academics and environmentalists are increasingly questioning its adverse impact on the environment.

A new study by researchers at Lund University in Sweden, for example, has found that many e-commerce companies are simply throwing away items returned by consumers, rather than trying to resell them. After interviewing businesses in the textile and electronics industries, Lund says the problem is “snowballing”.

Online Shopping

A European protest against ‘fast fashion’, which is viewed as a major source of pollution and wastage in the online shopping sector. Photo by Stefan Müller via Wikimedia Commons

“Internet shopping is increasingly commonplace, and with it comes more returns: previous studies have shown that digital commerce generates significantly more returned products than shopping in shops,” the research team notes.

“According to industry data, the trend of returning items looks to be on the increase, something that might be explained by the fact that shipping returns [are] usually free.

“High volumes of returns increase fossil-fuel emissions, thanks to more freight journeys. But it gets worse: what is not widely known is that companies – often ones who nurture a sustainable, carbon neutral profile – usually throw away the products that are sent back.”

The phenomenon is widespread throughout the electronics and clothing industries. Both are sectors with a large and varied range, and cheap products. The more expensive the products, the more likely they are to be repackaged and sold again.

Throwing returned products away is seen as more cost effective

“The blunt reality is that throwing things away is the lesser of two evils for the company, from a financial perspective. That applies particularly to goods that are cheap compared to the cost of examining, repacking and putting them back on sale again,” says Carl Dalhammar, Senior Lecturer at the International Institute for Industrial Environmental Economics at Lund.

After their investigations, Dalhammar and his colleagues conclude that dealing with the problem is not that easy. A ban on throwing away returned items is not a straightforward solution.

If companies are forced to give away unsold products in as-new condition to charity or second-hand shops, the value of the companies’ ordinary product range is devalued.

One first step may be to introduce a compulsory fee on returns instead. “It has been established that consumers take advantage of free returns,” Dalhammar explains.

Certain clothing brands have already introduced fees on their own initiative. But, for the most part, return parcels remain free of charge.

This is because e-commerce companies quickly recoup the extra cost of returns, since in total the customers who make returns still generate more profit for e-commerce than those who do not send returns.

You can find out more about the research here.

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.