A growing chorus of criticism is targeting major online retailers over their handling of the escalating tide of returns, with experts accusing them of engaging in performative efforts while failing to address the underlying issues. Research from the University of Bamberg’s Return Management Research Group suggests the industry’s public pronouncements regarding reducing returns are largely a smokescreen, designed to project a sustainable image while clinging to a business model heavily reliant on generous return policies.
The volume of returned parcels in Germany is predicted to reach a record 550 million in 2025, cementing the nation’s position as Europe’s leader in online returns. While online retailers routinely promise to curtail this surplus, return rates across all categories remain stubbornly stable, hovering around 24 percent. This stagnation, according to Björn Asdecker, a leading researcher in the field, paints a clear picture: “Returns have long become an integral part of the business model.
The prevalence of free returns is particularly problematic, as it creates a significant competitive advantage for large online platforms, effectively squeezing out smaller businesses unable to absorb the costs associated with managing returns. Asdecker argues that these practices are anti-competitive, erecting barriers to entry for smaller players.
The current industry narrative of mitigating returns through mechanisms such as artificial intelligence and psychological tricks is viewed with skepticism. While retailers like Amazon and Zalando publicly state intentions to avoid returns and responsibly handle them – with Amazon asserting a focus on helping customers choose the right product initially and Zalando highlighting efforts to resell returned items as outlet stock or donate them – critics maintain these measures are superficial.
The only viable solution, Asdecker contends, is legislative intervention. He proposes a law requiring online retailers to charge customers for returns, a move designed to disincentivize excessive ordering and force the industry to confront the significant environmental and economic costs associated with return logistics. The debate highlights a growing tension between consumer convenience, competitive pressures and the sustainability of the rapid growth in online commerce.
