The $900 Billion Opportunity No Brand Can Ignore

Few topics unite retailers, brands, and logistics providers like the challenge of returns. At DELIVER America 2025, a powerhouse panel brought the issue into sharp focus: Tony Sciarrotta of the Reverse Logistics Association, Sakni Leon from Logitech, and Avinash Surya Prakash of Walmart.

Every year, consumers send back an astonishing volume of goods — roughly 17 percent of all U.S. retail sales, worth $850–900 billion. In Europe, return values are fast catching up, reaching €642 billion, with categories such as apparel and footwear seeing rates above 40 percent. The waste is visible from space: mountains of discarded textiles and electronics piling up across the globe.

“That’s what returns look like when you’re not doing the right thing,” warned Sciarrotta. “We’re here to show there’s a better way.”

From Cost Center to Competitive Advantage

Reverse logistics has long been viewed as an unavoidable cost — but that mindset is changing. Today, it’s becoming a strategic battleground where margins, sustainability, and customer loyalty intersect.

Leon described Logitech’s approach:

“We know products will come back. The key is ensuring every disposition — whether liquidation, donation, repair, or material recovery — has a positive outcome.”

Prakash added that success requires seeing returns as part of the end-to-end supply chain, not an isolated burden. “The easier and more transparent the process, the more trust you build — and the stronger your top line becomes.”

Designing for the Circular Economy

Circularity, the panel agreed, begins at the design stage. Manufacturers must plan for a product’s second and third life long before it reaches the customer.

Leon explained that Logitech now feeds reverse-logistics insights directly into product development:

“We know why customers return items and the condition they come back in. That data informs our material choices, packaging, and even online product information.”

Sustainability and convenience can coexist, added Prakash. Retailers are experimenting with “try-before-you-buy” models, hyper-local return networks, and automated credit issuance for low-value items — all aimed at reducing waste while exceeding expectations.

Meeting — and Exceeding — Customer Expectations

Returns are often triggered by unmet expectations rather than faulty goods. As Sciarrotta noted, “Somewhere north of 95 percent of returned products have nothing wrong with them.”

That insight shifts responsibility upstream: clearer descriptions, accurate visuals, and simple instructions all play a part. Logitech now prioritises transparency and education at the point of sale, while Walmart focuses on making the return experience frictionless — from instant refunds to streamlined drop-off options.

“How easy is it to return an item, and how fast do you get your refund?” asked Prakash. “That’s where customer trust is won or lost.”

Remarketing and the Rise of “Pre-Loved”

Both companies are capitalising on growing consumer acceptance of refurbished and “pre-loved” products.

• Logitech has launched its own Refurbished Outlet online, seeing strong sales in both the U.S. and Europe.

• Walmart operates a secondary marketplace that complements its core e-commerce platform.

• eBay and Facebook Marketplace have emerged as dominant channels for refurbished goods, particularly in electronics and bulky categories.

“New generations are more conscious about their purchases,” Leon said. “We’re seeing a real shift in how people value refurbished products.”

Technology, AI and the Next Frontier

Technology is rapidly improving how returned goods are assessed, authenticated, and resold. Walmart uses serial-number verification to combat fraud in electronics, while AI is being deployed to analyse screen damage or cosmetic defects instantly.

Leon highlighted the potential of image recognition and machine-learning feedback loops to accelerate refurbishment and quality control. “There’s still huge room for innovation,” she noted. “As attention on returns grows, technology investment will follow.”

Local Loops and Sustainable Logistics

Hyper-local logistics models are emerging as one of the most powerful sustainability levers. Rather than shipping products thousands of miles back to central warehouses, companies are redistributing or reselling items closer to where they were returned.

Sciarrotta cited the example of fitness-equipment manufacturers now reselling returned bikes or treadmills locally instead of shipping them cross-country. “Keep it in the community,” he urged. “It saves cost, reduces carbon, and keeps products in use.”

The Future: Returns as Part of the Customer Journey

As the session closed, the panel agreed that reverse logistics is no longer the dark side of retail — it’s a critical component of modern commerce.

“Returns represent an opportunity for every company here,” Sciarrotta concluded. “Last-mile delivery should always include last-mile returns.”

With circular design, connected data, and customer-centric thinking, returns can become a source of profit, a pillar of sustainability, and a driver of brand loyalty — turning one of retail’s biggest problems into one of its greatest strengths.