The company said retailers in both the EU and UK must prepare for these regulatory changes by implementing “integrated, end-to-end processes” that connect customer returns to logistics, warehousing and backend operations.
To address returns and reduce waste, nShift has outlined three approaches for retailers:
- Understand why products are being returned.
- Tailor returns options based on customers and products.
- Enable recommerce and faster resale.
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 new EU regulation, coming into force from July 2026, forms part of the Ecodesign for Sustainable Products Regulation (ESPR), which aims to cut textile waste across the bloc substantially.
Under the new requirements, large companies are prohibited from destroying unsold or returned clothing, footwear and accessories. Although the legislation directly targets businesses operating within the EU, it is expected to affect any retailer selling into the region or using EU-based fulfilment and returns networks.
According to research from the European Environment Agency cited by nShift, online clothing purchases see an average return rate of 20%, with up to 43% of returned items ultimately destroyed.
The company argued that retailers who only offer digital returns portals without full integration risk higher costs, slower restocking and increased waste due to a lack of visibility across their operations.
