Sustainability and Returns: Reducing Costs and Your Carbon Footprint
It has become critical for retailers and consumer goods manufacturers to find ways to reduce the environmental impact of their operations. While there is plenty these companies can do in the supply chain to improve sustainability, they can also reduce the impact of returns while also decreasing associated costs. The transportation of returned goods is estimated to produce 15 million metric tons of carbon dioxide each year.
It can be difficult to balance goals like sustainability and cost reduction, but with some careful planning and creative solutions, costs and environmental impacts don't need to compete when it comes to returns processes.
Here, we'll explore how companies can make their returns operations more sustainable while achieving cost goals.
Reusing Products
One solution gaining popularity is the reuse and recycling of materials from returns processes, as well as the products being returned. Most companies attempt to recoup their losses by re-selling returned products, but too often, those products end up in a landfill.
Still, there are also innovative ways to repurpose and reuse products. Companies that sell technology could use the parts from returned products they can't sell for repairs, or even sell those parts separately. Some products may be capable of being recycled, then re-made into other products.
Similarly, by repurposing shipping boxes, packaging materials, and other items, companies can not only save money on purchasing new supplies but also reduce their environmental footprint.
Transparency & Education
Consumers are increasingly interested in knowing how their favorite brands deal with returns. They also want to know what their options are in the returns process.
For example, some consumers may be willing to wait longer for a refund or a new product if it means they can opt for a more sustainable return option. Consumers may even be willing to pay more for more sustainable options. According to a study by McKinsey & Company, 60% of consumers in 2020 said they'd be willing to pay more for a product with sustainable packaging.
Educating customers about more eco-friendly ways to return items can be a valuable aspect of the customer experience. Companies can promote the use of sustainable packaging, provide digital returns labels that consumers can print at home, or encourage customers to donate lightly used items to charities instead of returning them.
Automation
Automation can not only streamline the returns process and improve the customer experience but also help reduce the environmental impact associated with traditional return methods. By utilizing automated systems and technology such as AI-powered chatbots, barcode scanning, and automated sorting, businesses can minimize errors and reduce processing time, ultimately leading to happier customers and a healthier planet.
Automation can also reduce human errors in the returns process. For example, it can automatically sort returns into categories like repair or replacement, reducing the likelihood that items will be sent to the wrong locations and require additional transportation.
Measurement & Evaluation
Finally, most retailers and manufacturers must measure and evaluate their returns processes to identify problem areas and opportunities for more sustainable options. By implementing sustainability metrics covering issues such as power usage, CO2 production, and waste production, leaders can assess the effectiveness of the strategies they've put in place.
For example, if one area of the reverse logistics process produces a significant amount of carbon dioxide, leaders can search for more sustainable alternatives. Shipping methods like air transport could be replaced with rail transport. Products sent to a landfill could be rerouted to a recycling center that will accept them.
Create a More Sustainable Returns Process
For most organizations, creating a sustainable system of returns will be an ongoing process. But by embracing sustainable options such as reusable packaging as part of their returns processes, organizations can reduce their carbon footprints while also reducing costs.
Consumers are also becoming increasingly aware of the environmental impacts associated with returning products. Businesses have a unique opportunity to respond to this growing pressure from both consumers and investors.
If you'd like to learn more about how to implement sustainable returns, don’t miss Consumer Returns 2023. It’s happening from October 2nd to October 3rd at the Austin Marriott Downtown in Austin, Texas.
Download the agenda and register for the event today.