DHL sees ‘Returns Season’ as key to e-commerce profits and sustainability

As post-holiday shopping winds down, the global logistics industry is shifting into what carriers are calling “Returns Season,” as growing volumes of e-commerce returns reshape supply chain strategies.

According to DHL, returns have evolved from a back-office cost burden into a strategic differentiator, particularly in sectors such as fashion, where return rates can exceed 50 per cent and, in some categories, approach 90 per cent. The trend is driven largely by consumer “bracketing,” in which shoppers order multiple sizes or colours with the intention of returning most items.

DHL says the scale of returns is forcing retailers to rethink both profitability and sustainability. The company points to an estimated US$62.5 billion in untapped global revenue tied to returned goods that are discarded rather than refurbished and resold. In the United States alone, retail returns reached US$890 billion in 2024, according to the National Retail Federation.

A frictionless return process is also becoming a key driver of online sales. DHL’s eCommerce Trends Report found that 79 per cent of online shoppers will abandon a purchase if return policies do not meet expectations, with consumers citing incorrect sizing and poor product quality as leading causes for returns.

“Returns are now an unavoidable expectation. Data shows consumers want a ‘hybrid’ experience – buying online but returning via a dense network of parcel lockers or service points,” n said Pablo Ciano, CEO of DHL eCommerce. “We are meeting this demand with nearly 170,000 access points across Europe and digital solutions such as labelless returns, which are preferred by 32 per cent of Gen Z shoppers. This not only adds convenience but directly supports our goal of shortening transport distances.”

The company says it is addressing the challenge through expanded infrastructure and sustainability initiatives, including the use of 42,000 electric vehicles globally and labelless, QR-code-based return options to reduce paper waste.

DHL has also expanded its specialized DHL ReTurn Network in North America following its acquisition of Inmar Supply Chain Solutions. The network now operates 11 sites designed to process returns, overstocks and refurbishment, allowing products to be inspected, restocked and resold quickly.

“An efficient supply chain is the backbone of any successful return strategy. Through the DHL ReTurn Network, we are not just moving boxes; we are remarketing products. Our programs batch goods for secondary markets, ensuring that, instead of entering landfills, products remain in the supply chain,” said Hendrik Venter, CEO DHL Supply Chain EMEA. “This approach allows retailers to earn up to 90 per cent of a product’s resale value, turning unproductive inventory back into revenue.”