Destruction ban: How Save Our Returns aims to bring returns out of the black box

Millions of returned products, increasing regulation and a rapidly growing re-commerce market are making returns management a strategic issue for the fashion industry. Ernst Lameyer, founder of Save Our Returns, explains why transparency will become mandatory, the risks associated with non-transparent processes and why professional returns strategies can also create economic opportunities.

Although returns are part of the business model for online fashion retail, they often remain a black box. Many companies view returns primarily as a cost factor, while the actual handling of unsold or returned goods often lacks transparency and is difficult to verify externally. This creates a “black box”, particularly in the fashion industry with its high return rates, where product flows, secondary use and potential disposal are often poorly documented.

This could change with the upcoming EU Ecodesign Regulation. An EU-wide ban on the destruction of unsold goods will take effect from July 2026. Companies with an annual turnover of more than 50 million euros will have to disclose what happens to unsold or returned goods. At the same time, public and political pressure is growing to avoid the destruction of goods and to keep products in circulation.

This is where the Save Our Returns initiative comes in. The company certifies the returns processes of brands and retailers, aiming to bring reliable transparency to the market. In the interview, Lameyer explains how audits work, why returns are increasingly becoming a reputational and leadership risk and why professionally organised returns processes can be both a regulatory requirement and an economic opportunity for the fashion industry.

Mr Lameyer, what exactly is Save Our Returns?

Ernst Lameyer: We founded Save Our Returns in 2020 when the issue of product destruction was gaining political momentum. We audit and certify the returns processes of retailers and brands. The aim is to make it transparent that returned goods are not destroyed but are put back into circulation, for example, through reprocessing or re-commerce. The audit is carried out by an independent body, Dekra [Editor's note: a German expert organisation for testing, inspection and certification], which checks processes, product flows and disposal quantities.

Why is this topic gaining importance now?

The EU Ecodesign Regulation will come into force in July 2026. Companies with an annual turnover of 50 million euros or more will have to document which unsold or returned goods they destroy and why. Illegal disposal can be fined up to 100,000 euros and failure to report can be fined up to 10,000 euros. This is the current situation, although it has not yet been finalised in Germany. The industry must therefore become more transparent. Previously, it was unthinkable that companies would have to provide information on how many goods were returned and what was not sold.

Ernst Lamayer of Save Our Returns. Credits: Save Our Returns

How big is the returns problem in Germany?

Reliable data is still lacking; the market is considered a “black box”. For e-commerce as a whole, it is estimated that around 530 million items are returned each year. Approximately 20 to 25 million of these are destroyed. Disposal is only permitted for clearly justifiable reasons, such as damage or counterfeiting.

Experience suggests that the actual quantities are even higher in certain segments. High-end brands, in particular, have deliberately destroyed products in the past to protect their brand image and exclusivity. Such practices will no longer be permitted under future regulations.

The fashion industry is particularly affected by the returns problem, as multiple orders of different sizes and colours are common. Germany is also known as the “world champion of returns” due to its particularly generous return policies. Considering the growth of e-commerce in recent years and its continued expansion, it is clear how the issue of returns will evolve. This is precisely where we come in. Good returns solutions will become increasingly important.

What does Save Our Returns specifically aim to achieve?

The initiative aims to open up the “black box” of returns. The goal is to certify companies with effective and transparent processes and to build a long-term brand that also provides guidance for consumers.

At the same time, the aim is to raise awareness among brands, retailers and consumers. Everyone can play a part in reducing returns and ensuring that, when returns do occur, the goods are put back into circulation.

But won't companies still be able to dispose of problematic goods through third parties?

Outsourcing does not protect against scrutiny. There have been cases where brands have publicly announced that they would recycle goods, only for external observers to prove otherwise using trackers. This has led to significant reputational damage.

This is precisely why Save Our Returns relies on independent audits. Individual process steps may be concealed, but quantities cannot.

How does certification work?

First, the entire returns process is analysed in a pre-audit. Companies must transparently present their product flows, from A-grade and B-grade goods to potential disposal. An external auditor from Dekra then verifies on-site that the processes are being followed. The specific data remains confidential but is intended to help gather reliable industry figures in the future.

What does this mean for fashion companies?

Returns must be strategically integrated. This includes proper documentation, systematic analysis of return reasons and a clear strategy for B-grade or second-hand goods. Professionally organised companies systematically analyse the reasons for returns. If an item is returned frequently, it is checked and discussed with the supplier. The data is then fed back into product development and quality assurance.

It is also crucial that returned goods are put back on sale as quickly as possible. The major logistics companies have become very professional in this area in recent years. Some companies can have a returned item back in their shop within half an hour. Those who only handle returns as a side-line will come under economic and regulatory pressure in the future.

At the same time, the re-commerce market is growing strongly, most recently by 21 percent. In the future, it could account for up to 25 percent of all e-commerce. Major brands in other sectors, such as electronics, have been successfully reselling tested goods for years. This makes the professional handling of returns increasingly relevant from an economic perspective.

Do you think the free returns model will disappear?

Not necessarily. A more likely scenario is professionalisation: better size advice, data-driven product optimisation and greater integration of re-commerce and B-grade goods. The aim is not to scale back the service, but to make it more responsible.

For whom is a collaboration with Save Our Returns particularly interesting?

Brands in particular face a significant reputational risk. As soon as a brand hands over its B-grade goods or returns to a third party, it loses control. Destruction or a lack of transparency can also damage a brand's image. We are currently seeing the second-hand market grow, with more and more companies trying to buy back their used products and integrate them into their shops. So why not take back B-grade goods or returns and sell them yourself? This can reach new target groups. Professional returns and re-commerce management opens up new sales opportunities and also strengthens customer loyalty.

Who handles returns? Can this only be done by external service providers?

Returns are more complex than standard logistics. Parcels have to be opened and the goods inspected, cleaned, reconditioned and valued. This is why this area is often outsourced to specialist service providers. Large logistics companies have set up their own units for this purpose. The returns process is increasingly developing into an independent field of logistics with its own specialisation, skilled workers and strategic importance. It is fascinating how well some service providers, such as WKS, manage to recondition the goods.

What is your key message?

Returns are no longer a marginal issue. The new regulation makes transparency and circularity mandatory. Companies that establish clean processes now will not only reduce risks but also unlock economic potential.

At the same time, consumers should be more involved, with the awareness that a return has consequences. The aim is not to abolish the system of customer-friendly returns, but to make it more responsible and transparent.

We are also planning awareness campaigns, from social media and consumer fairs to educational projects. The initiative sees itself as a platform that brings together retailers, brands, politicians, associations and consumers to advance the issue through positive solutions rather than scandals.

This article was translated to English using an AI tool.

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