Fast fashion: why your online profits could end up in landfill – and what can be done about it

About 30% of online purchases are then returned, the majority of which end up in landfill. In 2020, an estimated 2.6 million won ton profits were treated in this way in the United States alone. The issue has become so well known that online retailer Boohoo has recently taken several major streets brand when starting to charge returns to frustrate them.

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But what makes the profits so high and why are so many returned items not resold? The pandemic has fundamentally changed the way we shop, with the temporary closure of physical stores representing a boon for online retailers. However, the strong increase in market share of online retail stems from longstanding fast fashion marketing practices. The premium is set on freshnesslow prices and both free shipping and returns, all of which encourage customers to buy a wide selection in the knowledge that they can return items freely (known as “returns”).

Buy-now-pay-later programs, such as Klarna, that allow customers to order without paying upfront have fueled online consumption. Research pointed out that by offering such “payment solutions,” retailers would typically see a 68% increase in average order value.

The pandemic saw an uptick in online shopping. (Source: Pexels)

Industry research shows that cart abandonment rates drop by almost 40% after the introduction of checkout solutions. Discount events such as “Black Friday” also drive sales, with fashion accounting for about a third of the total. Friday use.

Fast fashion is synonymous with profit

Despite the appeal of low prices and discount, cheaply made fast fashion items often have quality and fit issues, which in turn mean returns. Impulsive spending, due to discounts, also often leads to regret, again increasing the rate of return. As a result, the 32% return rate for clothing orders is lower than in other e-commerce sectors, compared to just 7% in the consumer electronics sector.

For retailers, the handling of returns is also fraught with uncertainty and complexity. What items will be returned, and in what status, is not yet known. Usually, once used, there is little effect that makes them want to buy again.

This is especially true in the case of “wardrobe, where a purchased item will be worn once before being returned. Not only do retailers experience financial loss from recycling, they risk reputational damage if worn or damaged items are re-circulated.

The European Union is warning consumers to stop using their clothes as junk. (Source: AP)

ASOS has previously announced that they will be holding back.”wardrobe“By closing the accounts of fraudulent returners. However, the threat of a bad review often leaves the retailer with no choice but to issue a refund.

Much Retailers instead, sell these profits to liquidators, who turn obsolete goods into quick cash. A cursory glance on eBay reveals dozens of “Amazon customer returns” pallets available to the highest bidder.

Challenges retailers face

Both the cost of handling returns and their increased volume present a challenge for retailers. Substantial reprocessing costs associated with product Profits mean that for fast fashion items, they often exceed potential resale revenue. Relatively high-cost domestic worker remuneration in the labor-intensive recycling process is believed to be responsible for this.

Therefore, eliminating profits is often the most cost-effective decision. An ITV investigation into Amazon’s Dunfermline warehouse claimed the online retailer handle Tens of thousands of consumables are returned every week. Amazon says none of its items go to landfill but are instead donated, recycled or burned for energy recovery.

(Source: Pexels)

Fashion industry total production of more than 92 million tons of textile dyeing waste per year. In the US alone, clothing recalls produce more annual carbon dioxide emissions than 3 million cars.

Carbon dioxide is initially released through collection of recoveries, before increasing when the recoveries are incinerated or left in landfills. Due to the popularity of synthesis yarns According to fast fashion, the return process can take up to 100 years to fully decompose, releasing carbon dioxide and methane, as well as leaching harmful substances into the surrounding soil.

How are retailers dealing with returns?

While the environmental impacts of product returns are clear, fashion retailers also have a financial incentive to tackle the problem of costly returns management.

Due to the complexity surrounding reprocessing, fashion retailers are increasingly outsourcing the responsibility to specialist firms, such as ReBound Returns, that work with retailers to make the process. more sustainable returns.

Recoil encourage retailers donate returned consumables to charity through their ReBound Regift facility. This has so far facilitated charitable donations of £190 million. ASOS claims that 97% of their profits have now been resold and no items have been sent to landfill.

Fast fashion is not only harmful to the environment but also detrimental to the lives of millions of workers involved in the production process. (Source: So Delhi/ Instagram)

As Boohoo’s recent move shows, some online retailers have attempted to pass on the cost of profits to customers. While the reason for this is mainly finance, the impact of similar policies in increasing customers’ environmental consciousness is well known. Since 2015, the use of plastic bags has decreased by 97% in Englandof the main supermarkets, after the introduction of a small fee.

Despite the louder calls Sustainability In the fashion industry, fast fashion continues to thrive. If marketing practices that encourage waste and fuel emissions continue, the fashion industry will retain an undesirable reputation as a significant contributor to climate change. Retailers must reconsider the unintended effects of their leniency policybalance between the need to retain customers with the awareness of environmental protection.

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