Today, Explained
Many unhappy returns
Jan 5, 2024
In this insightful discussion, Amanda Mull, a staff writer at The Atlantic and expert on reverse logistics, dives into the fascinating world of retail returns. She sheds light on the complex journey of a returned item, revealing the often humorous yet challenging processes at return warehouses. Amanda explores the donation dilemma, highlighting how many goods end up in landfills. She also discusses evolving retail return policies and their impacts on sustainability, consumer behavior, and the modern shopping experience.
25:45
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Quick takeaways
- The process of handling returns involves a vast network of infrastructure and resellers, contributing to the growth of the reverse logistics industry.
- To discourage excessive returns, retailers are starting to impose fees on return shipments, but consumer behavior remains unchanged and return rates remain high.
Deep dives
The Complex System of Returns Processing
The process of handling returns involves a vast network of infrastructure, transporters, warehouses, and resellers to accommodate the hundreds of millions of products that consumers send back. Inmar Intelligence is one such company that handles returned items for retailers. Inside their facility in Pennsylvania, material handler Michael sniffs sweatpants as part of his job. The large-scale facility, spanning 300,000 square feet, stores and processes various types of returns, including drugstore items, rugs, and apparel. Bracketing, the practice of buying multiple sizes of clothing or rugs and returning the unwanted items, is common. The high return rates in online shopping have contributed to the growth of the reverse logistics industry.
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