New EU rules put pressure on fashion retailers to fix ecommerce returns

nShift says retailers must integrate returns management to cut waste and costs 

New European Union (EU) rules aimed at tackling textile waste are increasing pressure on clothing and footwear retailers to rethink how they handle ecommerce returns. From July this year, large companies operating in the EU will be banned from destroying unsold or returned clothing, footwear and accessories. This move will have implications well beyond the EU’s borders.

nShift, the global leader in delivery and experience management, argues that both EU and UK retailers need to go further in ensuring that their returns processes are integrated.  Doing so will give them real insights into their returns. While offering a digital returns portal is essential, it is not sufficient alone. Retailers must adopt integrated, end-to-end returns processes that connect the customer experience with carriers, warehouses and backend systems. Without this level of integration, retailers lack insight and risk higher costs, slower restocking and greater waste. This is true regardless of where they are headquartered.

The new rules form part of the Ecodesign for Sustainable Products Regulation (ESPR), which aims to significantly reduce textile waste across the EU. Research from the European Environment Agency highlights ecommerce returns as a major contributor to the problem. The average return rate for clothing bought online is estimated at 20%, while as much as 43% of clothing purchased online ultimately ends up being destroyed (source).

While the legislation applies directly to EU-based operations, retailers selling into the EU — or operating EU fulfilment and returns networks — will also be affected. At the same time, growing consumer and regulatory pressures are pushing retailers to demonstrate greater control and transparency across their supply chains, including returns.

"Returns are now firmly in the spotlight — not just as a cost issue, but as a sustainability challenge. For retailers operating in or selling into the EU, ESPR makes it clear that destroying returned stock is no longer acceptable.

But simply digitizing returns isn’t enough. Retailers need integrated returns processes that link the customer-facing experience with logistics, warehouse operations back-end systems so returned items can be inspected, re-listed and resold quickly."

Jurgen Leijdekker, CEO nShift

nShift highlights three strategies retailers can use to reduce returns volumes and minimise waste:

1.    Understand why products are being returned

Capturing structured return reasons — and connecting that insight across teams — enables retailers to address root causes. For example, repeated returns can inform product descriptions, imagery or future design decisions.

2.    Tailor returns options based on customers and products

Integrated, digital returns allow retailers to apply flexible policies based on customer behaviour, order value or product type. This helps discourage unnecessary returns while protecting customer experience.

3.    Enable recommerce and faster resale

As recommerce grows, integrated, digital returns help ensure items are tracked, verified and processed efficiently. This allows returned goods to be reintroduced into saleable stock or resold through recommerce channels, rather than being written off.

nShift Returns is part of the nShift Delivery Experience and Management platform that helps brands and retailers manage the full ecommerce journey from return request to warehouse — while using returns data to reduce waste, protect margins and prepare for evolving sustainability regulation across Europe.