The first week of January is here, and so are the returns. On 2 January 2025, UK retailers received £1.51 billion worth of returned items, according to ParcelHero. That’s a 6.8% increase compared to the same day in 2024, with Royal Mail reporting returns up 52% on a typical December day.
This annual surge hits hardest on “Returns Wednesday”, the first working day after Christmas, when unwanted gifts flood back through the post. For UK eCommerce brands, it’s a logistical test and a revenue drain. But there’s another cost most retailers overlook: the environmental impact.
Reverse logistics generate packaging waste, carbon emissions from courier returns, and thousands of tonnes of unsellable stock heading to landfill. UK brands need to process returns efficiently while protecting their margins and reducing environmental impact. This article provides practical guidance on how to achieve all three.
The True Cost of After-Christmas Returns
Most eCommerce brands focus on the customer service and cost implications of returns, but the environmental impact is significant and often overlooked.
Here’s what the numbers tell us:
| Category | 2025 UK Data |
| Total value of post-Christmas returns | £1.51 billion |
| Returns increase (2 Jan vs 2024) | 6.8% |
| Peak returns day | 2 January (“Returns Wednesday”) |
| Returns vs typical December day | +52% (Royal Mail) |
| Annual UK returns value | £27 billion |
Fashion takes the biggest hit. Sizing issues, colour mismatches, and impulse gift purchases mean clothing returns run at 20-30% for some brands. Electronics and toys follow close behind.
The environmental toll includes:
- Cardboard, plastic, and void fill from returns packaging
- Carbon emissions from individual courier collections
- Landfill waste from damaged or unsellable returns (estimates suggest 25% of returned fashion items can’t be resold)
- Energy use in warehouses for inspection and restocking
Most brands focus on speed and customer experience. Fewer think about where returned items actually end up.
Set Up Eco-Friendly Returns Infrastructure
Sustainable returns start with the packaging and logistics you choose. Small operational changes can cut waste significantly without adding costs.
Switch to Recyclable Returns Packaging
Stop using single-use plastic mailing bags. Recyclable or reusable alternatives exist:
- Paper-based mailing bags (made from recycled kraft paper)
- Sugarcane-based biodegradable bags
- Reusable cloth returns bags (customer keeps and uses for future returns)
Some 3PL partners now offer sustainable packaging as standard. Green Fulfilment, for example, provides recyclable packaging options across its UK and EU fulfilment centres, helping brands reduce plastic use without sacrificing protection in transit.
Eliminate excess void fill. Returns don’t need bubble wrap if the original item packaging is intact. Use paper tape instead of plastic, and skip the unnecessary inserts.
Consolidate Returns Shipments
Individual courier collections are carbon-heavy. Batch returns processing reduces vehicle journeys:
- Encourage drop-off returns: Evri Lockers, Post Office locations, and carrier collection points consolidate multiple returns into single courier routes
- Batch daily collections: If you fulfil in-house, arrange one consolidated pickup per day rather than multiple ad-hoc collections
- Choose low-carbon carriers: Work with couriers offering electric vehicle fleets or carbon-neutral delivery options
The bonus: consolidated shipments often cost less than individual collections. Sustainability and savings go hand in hand.
Master Returns Triage: Resell, Refurbish, Recycle, Donate
Fast, accurate triage determines whether a returned item generates revenue or becomes waste. Every hour a return sits uninspected is lost potential resale value.
A good returns triage process can look like this:
1. Inspect Immediately
Returns should be checked within 24-48 hours of arrival. Use RF or RFID scanning to log the return and assess condition instantly.
Triage decision tree:
- Perfect condition → Restock immediately for resale
- Minor issues (missing tags, opened box) → Refurbish and sell as B-stock or outlet items
- Damaged but recyclable → Send to textile recycling (fashion) or electronics recycling schemes (tech)
- Usable but unsellable → Donate to charity partners
2. Maximise Resale Rate
The goal is to get as many returns back on sale as quickly as possible. Real-time inventory systems (most modern 3PL platforms offer this) help you:
- Identify which SKUs are returned most often
- Restock returned items to live inventory immediately
- Track return reasons to identify product or description issues
If sizing is a major return driver, update product descriptions or consider offering virtual fitting tools.
3. Partner with Recycling Programmes
For items that can’t be resold:
- Fashion brands: Partner with textile recycling schemes like TRAID or Salvation Army Trading
- Electronics: Use certified WEEE (Waste Electrical and Electronic Equipment) recycling services
- General goods: Contact local reuse charities for donations
A fulfilment partner with established recycling relationships can handle this on your behalf. Green Fulfilment’s B Corp certification means sustainability is built into operations, from packaging to end-of-life product handling.
Go Paperless with Returns Processing
Every returns label, packing slip, and manual form adds up. Over 1 million sheets of paper have been saved through paperless dispatch systems at leading UK 3PLs. Apply the same thinking to returns.
Digital returns workflows include:
- QR code returns labels: Customers receive a code via email, scan at drop-off point (no printing required)
- Online returns portals: Customers log into a branded portal to request returns and select reasons
- Automated returns authorisation: System approves returns instantly based on policy rules
The benefits:
- Zero paper waste
- Faster processing (no manual data entry)
- Better data (you capture return reasons digitally)
- Improved customer experience (fewer steps, faster refunds)
Paperless returns also give you actionable insights. If 40% of a specific SKU’s returns cite “colour not as described”, you can fix the product photography rather than keep processing returns.
Communicate Sustainability to Customers
Customers notice when brands care about environmental impact. A clear, honest returns policy that mentions sustainability builds trust without greenwashing.
What to Include in Your Returns Policy
Your returns page should state:
- Eco-friendly packaging: “We use recyclable returns bags made from sugarcane-based materials”
- Preferred return methods: “Return via an Evri Locker or Post Office to reduce individual courier journeys”
- Triage commitment: “Returned items in good condition are restocked immediately. Damaged items are recycled responsibly”
Incentivise Lower-Impact Returns
Consider offering:
- Store credit bonuses: £5 extra credit if customers choose store credit over refund (avoids reverse shipping for exchanges)
- Free drop-off returns only: Charge for home collection to encourage consolidated drop-off points
- Extended return windows: Give customers more time to decide, reducing rushed returns
Research from Royal Mail shows 81% of shoppers expect easy returns. But “easy” doesn’t have to mean “wasteful”. Transparency about your sustainability efforts actually strengthens customer loyalty.
Work with a 3PL for Scalable, Sustainable Returns
Handling returns in-house works when you’re small. Once you’re processing hundreds of returns per month, the infrastructure requirements become overwhelming.
A 3PL with dedicated returns capabilities can:
- Inspect and triage faster (dedicated returns teams, not warehouse staff juggling multiple tasks)
- Restock efficiently (integrated systems update inventory in real time)
- Manage recycling partnerships (established relationships with textile and electronics recycling schemes)
- Consolidate logistics (multiple brands’ returns processed together, reducing individual shipments)
Look for these green credentials:
| Credential | What It Means |
| B Corp Certification | Verified sustainability and ethical operations standards |
| Paperless operations | Digital systems, no printed pick lists or packing slips |
| Recyclable packaging | Sustainable materials as standard, not an add-on |
| Energy-efficient warehousing | Solar panels, LED lighting, optimised heating/cooling |
Green Fulfilment operates as a certified B Corporation with facilities across the UK and EU. Returns are handled with the same sustainability focus as outbound fulfilment: recyclable packaging, paperless processing, and fast triage to maximise resale rates.
For brands shipping 500+ orders monthly, a 3PL takes the operational burden off your team while ensuring returns don’t harm your environmental commitments.
Reduce Returns Before They Happen
The most sustainable return is the one that never occurs. Use post-Christmas returns data to prevent future issues.
Quick wins:
- Analyse return reasons: If “too small” dominates fashion returns, your sizing guide needs work
- Improve product content: High-quality photos from multiple angles reduce “not as expected” returns
- Add customer reviews: Shoppers trust peer feedback on fit, quality, and colour accuracy
- Use video demonstrations: For complex products (electronics, assembly-required items), video reduces confusion
Real-time reporting from your fulfilment platform (whether in-house or via a 3PL) shows which SKUs have the highest return rates. Fix the root cause rather than endlessly processing preventable returns.
Key Actions for Sustainable Post-Christmas Returns
Here’s what to implement before next Christmas:
- Switch to recyclable or reusable returns packaging
- Consolidate returns shipments (encourage drop-off points, batch collections)
- Build a fast triage system: resell, refurbish, recycle, or donate
- Go paperless with QR code labels and digital returns portals
- Update your returns policy to communicate sustainability efforts
- Partner with a B Corp-certified 3PL for scalable, green returns infrastructure
- Use returns data to prevent issues at source (better content, accurate sizing)
Frequently Asked Questions
What day do most post-Christmas returns happen in the UK?
Most UK post-Christmas returns peak on the first working day after Christmas (typically 2 January), known as “Returns Wednesday” or “Takeback Tuesday”. In 2025, ParcelHero reported £1.51 billion worth of items returned on 2 January, a 6.8% increase year-on-year. Royal Mail data shows returns jump 52% compared to typical December volumes.
How can eCommerce brands process returns sustainably?
UK brands can process returns sustainably by using recyclable packaging materials, consolidating courier collections, implementing digital (paperless) returns systems, and triaging returns quickly to maximise resale rates. Partner with textile or electronics recycling schemes for items that can’t be resold, and consider working with a B Corp-certified 3PL that has sustainability built into operations.
What happens to returned items after Christmas?
Returned items should be inspected within 24-48 hours and triaged: perfect condition items are restocked immediately for resale, slightly damaged items can be refurbished and sold as B-stock, damaged items are sent to textile or electronics recycling programmes, and usable items that can’t be resold are donated to charity partners. Fast triage prevents returns sitting as dead stock.
How much do returns cost UK retailers?
UK retailers face approximately £27 billion in annual returns. Post-Christmas returns specifically account for around £1.41-1.51 billion in early January alone. Retailers can lose up to 50% of margin on returned items due to restocking costs, depreciation, and items that become unsellable. However, sustainable returns processes (fast triage, consolidated logistics) help protect margins.
Should UK brands offer free returns after Christmas?
Free returns improve customer satisfaction (81% of shoppers prefer retailers that don’t charge, according to Royal Mail research), but brands should balance this with sustainability. Consider offering free drop-off returns at consolidated points (Evri Lockers, Post Office) while charging for individual home collections. Alternatively, incentivise store credit over refunds to avoid reverse shipping for exchanges.
What are the most returned items after Christmas?
Fashion and clothing have the highest post-Christmas return rates (20-30% for some brands) due to sizing issues, colour mismatches, and gift recipients receiving duplicate items. Electronics and toys also see high returns, often due to unwanted gifts or products not meeting expectations. Using better product descriptions, sizing guides, and customer reviews can reduce preventable returns.
Need help managing post-Christmas returns sustainably? Get a fulfilment quote from Green Fulfilment or see how B Corp standards apply to returns.
