Delivery and experience management specialist nShift is urging fashion retailers to overhaul how they handle online returns, warning that the upcoming EU ESPR returns ban will raise expectations for speed, visibility and waste reduction across reverse logistics.
The company said clothing and footwear businesses in both the EU and the UK should prepare now by putting in place “integrated, end-to-end processes” that connect customer-facing returns journeys with transport, warehousing and back-end systems. nShift argues that without this operational linkage, returned products are more likely to be delayed, mishandled or written off—driving avoidable cost and waste.
To reduce returns-related waste and improve recovery, nShift outlined three priorities for retailers: pinpoint the reasons customers send items back, tailor return options to different customers and product types, and enable recommerce so items can be re-sold more quickly.
nShift CEO Jurgen Leijdekker said: “Returns are now firmly in the spotlight — not just as a cost issue, but as a sustainability challenge. For retailers operating in or selling into the EU, ESPR makes it clear that destroying returned stock is no longer acceptable.
“But simply digitising returns isn’t enough. Retailers need integrated returns processes that link the customer-facing experience with logistics, warehouse operations back-end systems so returned items can be inspected, re-listed and resold quickly.”
The regulatory shift is tied to the EU’s Ecodesign for Sustainable Products Regulation (ESPR), with rules due to apply from July 2026 as part of a broader push to reduce textile waste. Under the framework, large companies will be prohibited from destroying unsold or returned clothing, footwear and accessories. While the legislation directly targets firms operating within the EU, nShift expects the practical impact to extend to any retailer selling into the bloc or using EU-based fulfilment and returns networks—making readiness for the EU ESPR returns ban a cross-border issue.
Citing European Environment Agency research, nShift noted that online clothing purchases have an average return rate of 20%, and that up to 43% of returned items may ultimately be destroyed. The company warned that retailers relying mainly on digital returns portals—without full integration into logistics, warehouse and inventory workflows—risk higher costs, slower restocking, and greater waste because decisions on inspection, relisting and resale are not coordinated end to end.
nShift also pointed to the wider cost burden highlighted in a recent Appriss Retail report, which estimated that fashion and other retailers globally recorded combined losses of $796bn in 2025 due to merchandise returns and shrinkage.