Retailers Struggle to Capture Value From Returns
A September 2026 study reveals that many retailers fail to monetize returned products despite having circularity policies.
Updated on Oct. 28, 2026 in Retail
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A September 2026 study by ReBound Returns and Advanced Supply Chain highlights a persistent disconnect between retailer circularity goals and actual financial recovery from returns. Researchers found that while 86% of retailers have circularity policies, 12% of all returned items generate no value at all.
Why it matters
High costs related to transportation, processing, and technology integration often prevent retailers from efficiently recovering value from returned stock. Without end-to-end visibility, many companies overlook viable options for repair or resale, leading to significant inventory waste.
The study of 150 retail leaders found that 6% to 40% of returned items are destroyed or discarded by half of all retailers. Currently, only 28% of firms achieve a leading circularity score, while 9% of companies resell over half of their returns at full price.
The players
ReBound Returns
This organization specializes in returns management technology and logistics solutions.
Advanced Supply Chain
This entity provides logistics and supply chain management services for the retail sector.
The details
Many companies are now attempting to build recommerce ecosystems by partnering with specialists for donation, recycling, refurbishment, and repair. Success often relies on automation and data integration to better manage the condition and location of returned products.
Timeline
The study by ReBound Returns and Advanced Supply Chain was conducted in September 2026.
Market Landscape
This study documents the ongoing struggle of European retailers to transition from traditional linear models to integrated recommerce ecosystems. It highlights a critical competitive divide where only a small fraction of firms have successfully scaled circular processes to capture lost value.
Shoppers may see more refurbished or repaired items becoming available as retailers increasingly adopt recommerce strategies to recover product value. These efforts aim to reduce waste, potentially influencing future inventory availability and pricing for returned goods.
The takeaway
Retailers must invest in better data visibility to ensure that returned items do not end up in landfills unnecessarily. Implementing automated systems for tracking product condition can help businesses recover margins that are currently lost to simple disposal.
Further reading
Explore deeper insights into industry shifts on the Retail section page.
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?
