Nearly half of Black Friday online purchases returned, many go straight to landfill

As Black Friday continues to grow, retailers are struggling to cope with increased returns. According to a report by EAE Business School, nearly half of online sales generated on Black Friday end up being returned, with some products going straight to landfill.  

Black Friday's tempting discounts lead some consumers to make impulsive purchases, only to regret their decisions and return the products later. The phenomenon is so overwhelming that some companies have referred to the day as a "headache". 

Cristian Castillo, Professor of Logistics and Production at the Open University of Catalonia (UOC) says the day has become a "problem" for many businesses. 

"If the consumer is confronted with continuous and constant offers, they are more likely to buy compulsively, and days after receiving the product, regret it and return it," he said. 

To make things worse, this year's Black Friday comes at a time when many stores are still holding onto winter items that have not yet sold due to the high temperatures. Companies will sell winter items with greater discounts than previous years, which could prompt even more returns. 

Fashion and electronics are the sectors where most products are returned. Last year, Spanish fast-fashion retailer Inditex began charging for online returns, although the cost was only €1.95, a small amount considering the item had to be delivered and collected again. 

The high return rate of online sales contrasts with that of high street stores, which do not have an unusually high number of returns and associate it with the return of gifts. 

"Free shipping is an illusion that everyone believes, but it is a lie because someone has to pay for the transportation," says Miquel Serracanta, professor at the EAE Business School. 

Experts warn that the high volume of returns has an environmental impact, but also affects businesses, both logistically and in terms of human resources, as in some cases they hire staff just to deal with returns. 

Destroy products or gift them to customers 

Experts say that some companies have to take a radical solution: destroy the products when they return to the depot. This usually happens when the items are slightly damaged, and it is "not worth it" to repair them. 

When the items returned are cheap, some companies tell customers to keep them, and they are sent a new one.  

"Companies find it more profitable to let customers keep the item for free than to arrange a return," Miquel Serracanta says. 

E-commerce giant Amazon has already started deleting accounts of customers who make lots of returns.  

"If a customer buys four pairs of shoes in four different sizes online and only takes one and returns the others, they will soon be penalized," he said. The practice is known as "bracketing." 

Shops that specialize in selling returns 

Amazon also tries to give returned items a "second life" by auctioning off pallets of returned items.   

"They are valued at 2,000 or 3,000 euros and sold for 400 or 500 euros," explains Castillo.   

There is a store in Barcelona that has already started doing this. It only sells Amazon returns. It is the first store of its kind in Catalonia and one of the pioneers in Spain.   

"The items are 100% tested, in working order and in perfect condition. Consumers know that they can buy them much cheaper here and that way they do not end up as landfill," explains the manager of Prime Deals, Felipe Atehortúa.  

The price is between 30% and 40% lower than on Amazon, and in the store, customers will find a QR code on the product label that will take them to the original listing on Amazon.