Retailers See Minimal Value from Most Returned Items
Operators with circularity policies still struggle to monetize returns that are frequently destroyed or discarded.
Updated on Oct. 28, 2026 in Retail
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A September 2026 study by ReBound Returns and Advanced Supply Chain reveals that while 86% of European retailers have circularity policies, many struggle to turn returned goods into profit. The findings highlight significant operational gaps as retailers attempt to manage high volumes of waste and reverse logistics costs.
Why it matters
Retailers face high overhead from processing and transporting returns, yet disconnected data often prevents them from identifying the most profitable recovery paths. This inefficiency leaves millions of items in a state where they are destroyed or discarded rather than resold.
The study of 150 retail leaders found that 6% to 40% of returns are written off by half of all surveyed firms. While 98% of leading organizations now operate integrated recommerce strategies, only 28% have reached a top-tier circularity score.
The players
ReBound Returns
A supply chain technology provider specializing in reverse logistics and returns management software.
Advanced Supply Chain
A logistics and retail services firm focused on end-to-end supply chain integration and optimization.
The details
The report identifies that value recovery is frequently hampered by poor data integration regarding product condition and location. Organizations that successfully navigate this use end-to-end automation to streamline their recommerce ecosystems, utilizing third-party partners for specialized tasks like repair, refurbishment, and recycling. Without these systems, retailers remain stuck in a cycle of high disposal rates for goods that could otherwise be liquidated.
Timeline
September 2026: ReBound Returns and Advanced Supply Chain completed the industry study.
Market Landscape
This report highlights how retailer progress on circularity often lags behind formal policy, echoing broader findings on the circular economy retail transition trends. The research updates current performance metrics, revealing a persistent gap between sustainability pledges and actual commercial results.
Operators should audit the percentage of returned inventory currently being written off to determine if local recommerce partnerships could provide higher margins. Reviewing internal data visibility on returned items is the first step toward reducing waste and capturing lost value.
The takeaway
Retailers failing to integrate recommerce strategies are essentially absorbing the full cost of goods through destruction. Managers should track their 'recovery yield' as a primary KPI, treating each return as a potential inventory asset rather than an inevitable operational expense.
Further reading
For broader trends in operational efficiency, visit the Retail section.
Source note: This article includes information reported by Supplychaindigital.
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Do you support retailers investing more in product repair to reduce the amount of waste?
