The relentless tide of returns plaguing Germany’s booming e-commerce sector is prompting renewed criticism, with experts accusing major online retailers of engaging in performative sustainability while failing to address the root causes of the problem. A new study from the University of Bamberg’s Return Management Research Group suggests that the industry’s ongoing efforts to curtail returns are largely a façade, masking a business model that has effectively normalized the practice.
“Returns are often portrayed as expensive and undesirable” stated Björn Asdecker, lead researcher at the Bamberg group, in an interview with “Der Spiegel”. “However, it’s largely a fig leaf – an attempt to project a green image. Returns are, in reality, an integral part of the business model”. This is evidenced, he argues, by the stagnant return rates despite years of industry pledges and initiatives. The projected 550 million return packages anticipated for 2025 would solidify Germany’s position as Europe’s undisputed champion of online returns.
The widespread availability of free returns has been identified as a significant barrier to competition, effectively creating an uneven playing field that disadvantages smaller online retailers unable to absorb the considerable costs associated with managing the return process. This policy, experts contend, acts as a strategic advantage, pushing smaller competitors out of the market.
While major players like Amazon and Zalando publicly assert their commitment to reducing returns – Amazon claiming a focus on preventing them from the outset and Zalando highlighting efforts to repurpose returned items – critics question the sincerity and effectiveness of these measures. Zalando’s claims of repurposing only two percent of returns as B-ware or donations are viewed with skepticism, with concerns raised regarding the transparency of their larger-scale waste management practices. The persistent 24% average return rate across all categories underscores the limitations of current approaches.
Asdecker proposes a radical solution: legislation mandating online retailers to charge customers for returns. This, he believes, is the only truly effective method to curtail the return flood and create a more sustainable and competitive e-commerce landscape. The debate highlights a deeper tension between consumer expectations, industry profits and the environmental costs associated with the ever-growing mountains of returned goods and underscores the need for bolder regulatory action to address the systemic issues at play.