Retailers Write Off Up to 40% of Returns
Research finds many retailers destroy or discard returned stock, as new EU rules restrict destruction of certain unsold consumer goods.
Updated on Nov. 2, 2026 in Retail
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Retailers write off, destroy, or discard up to 40% of returned stock, according to research from ReBound Returns and Advanced Supply Chain. Since 19 July, the EU Ecodesign for Sustainable Products Regulation (ESPR) has banned destruction of certain unsold consumer goods for large retailers and brands selling into the EU.
Why it matters
The ESPR introduces new requirements around the sustainability and circularity of products across their lifecycle, raising pressure on retailers to reduce write-offs. Recycling is classified as a form of destruction under the regulation, alongside landfill and energy recovery.
A survey by ReBound Returns and Advanced Supply Chain found that 88% of retailers measure environmental impact across returns, but only 27% divert more than three-quarters of returns through circular routes. The survey-average write-off rate is 11.7%, and the extent of compliance with the new EU rules has not yet been measured.
The players
ReBound Returns
A returns-management firm that co-produced research on how retailers handle returned stock.
Advanced Supply Chain
A supply chain consultancy that co-produced the survey of retailers on returns handling.
The details
Retailers use resale, reuse, refurbishment, donation, or recycling as circular routes for returned stock, yet a large share still write off or destroy items. In an illustrative example, a retailer processing 100,000 returns a year at an average value of £106 per item would lose about £1.24 million from write-offs alone.
Timeline
19 July: ESPR ban on destruction of certain unsold consumer goods takes effect for large retailers and brands selling into the EU.
Market Landscape
The ESPR's ban on destroying certain unsold consumer goods, which classifies recycling as destruction, sets a new bar for large retailers selling into the EU. Retailers that already divert returns through resale and refurbishment may gain ground on competitors still writing off stock.
Shoppers buying from large EU-selling retailers may see fewer products destroyed, but the stub does not say how prices or availability will change. Consumers returning items should expect retailers to route more returns through resale, donation or refurbishment rather than disposal.
The takeaway
Retailers that measure and redirect returned stock through circular routes will face less pressure from the ESPR's destruction ban. Tracking write-off rates now gives businesses a clear baseline for compliance.
Further reading
For broader context on how sellers handle unsold and returned merchandise, see Retail.
Source note: This article includes information reported by FashionNetwork.
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