How UK ecommerce brands can build sustainable returns policies
Samir Kamnani
·June 2, 2025
Increasingly, sustainability is becoming a key differentiator for UK shoppers.
A recent survey found that 64% of Britons agree that climate change is the largest global threat to civilisation, and 64% of them are willing to pay at least 10% more for sustainably packaged foods and drinks.
The high carbon footprint of UK returns
Sustainability in the supply chain extends beyond how items are packaged for shipping—the returns process is also ripe for an overhaul.
Returned items are a huge contributor to landfill waste, with over 350,000 tonnes of clothing sent to landfills in the UK each year. Returns also have a significant carbon impact, due to carbon methane emissions produced during the items’ transportation process, as well as methane leaked by items decomposing in landfills.
Shoppers are keen to see brands take steps to improve the sustainability of their returns practises. Nearly half (48%) of UK customers say they’d like to see more sustainable returns options, and 47% say they show more loyalty to brands that offer sustainable returns tactics such as reduced packaging or recycling initiatives.
Strategies for optimising for sustainability in returns
Now that we’ve discussed why sustainable returns matter, here are some guidelines for creating a sustainable returns management process for your UK brand.
Minimise your packaging needs
Encourage shoppers to ship back returns in their original packaging, which should ideally be made from sustainable materials such as recycled cardboard, paper, and/or plastic. You can also provide the option to take unboxed returns to a local drop-off center, where they can be consolidated into a single bulk shipment, greatly minimising both your packaging needs and the carbon footprint of each returned item.
Offer returnless refunds when it makes sense
Do the maths on your online returns in the UK: If it costs more to ship back an item than you’re liable to earn in profits, then why ask the customer to send it back at all? Instead, grant the requested refund, but encourage your customer to keep, donate, or regift the unwanted item. That helps you save money on reverse logistics costs, minimises the item’s carbon footprint, and ensures that the shopper has a great returns experience with your brand.
Create a circular economy
The secondhand clothing market in the UK grew by 149% from 2016 to 2022, with an additional 67.5% increase forecasted by 2026. This trend is largely driven by Gen Z shoppers, of whom 31% regularly purchase used apparel.
By creating a branded secondhand marketplace for your own items that can’t be resold as new, you can capture new revenue from this growing market, whilst extending the lifespan of your not-quite-new products.
Be transparent about your environmental practises
Consumers highly value transparency from the brands they shop, and they want to understand what you’re doing to minimise your carbon footprint through the entire product lifecycle—from the manufacturing process all the way through to returns. Consider creating a dedicated section of your site that lays out your climate impact goals and the work you’ve done to meet them, as Allbirds has. It’s OK if you’re not at net-zero yet—but by sharing your strategy and commitment to building a more sustainable brand, you’ll be able to gain consumer trust and drive high loyalty rates.
How to set up a sustainable returns management process
By leveraging the right returns operations technology, you’ll be able to minimise waste in your returns process by ensuring that each item is handled efficiently. Rather than shipping all returns back to your warehouse by default and working out what to do with them from there, you can set up automated workflows that customise each item’s returns process based on set criteria, such as its location, product category, and condition.
For instance, if your customer wants to send back a top that’s not qualified to resell as new, you might choose to ship it to a resale marketplace, where you can recapture revenue through secondary resale; donate the item to a nonprofit, where it can be redistributed to someone in need; or use the item in your recycling programme, so that the materials can be fashioned into a new product. Alternatively, choose to let the shopper hold on to the item as a returnless refund, eliminating the product’s reverse logistics carbon footprint.
By utilising a UK returns management platform like Loop, you can build streamlined returns workflows for every type of product return. You’ll be able to save money on reverse logistics, lower your brand’s carbon footprint, and delight your customers with a sustainable returns experience.
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