Return to sender: waste-free deliveries with reusable packaging
In Europe, each of us generates almost 180 kg of packaging waste(opens in new window) every year on average. The steady rise of e-commerce is likely to push these figures further up – unless greener solutions find their way to our doorstep. The EU-funded Reuse as a service project has demonstrated a cost-efficient solution for replacing single-use packaging at a large scale. RePack(opens in new window) enables retailers and e-commerce platforms to ship products using packaging that consumers can return to them without hassle.
A global system
Together with its partners, the project team explored different return channels to test their ease of use, scalability and consumer engagement. The most widely available one is the postal service: “RePack bags can be returned to any postbox anywhere in the world,” explains Jonne Hellgren, RePack’s founder and CEO. The bags come in different sizes and can be folded flat so they can easily be deposited in a regular letterbox. Upon reception, RePack takes care of cleaning the bags and returning them to the partner company. Returns via postboxes and offices provide RePack with a global reach without the need for deploying costly infrastructure. The main drawback is the cost per shipped package, which does not offer any economies of scale.
Cost-efficient returns
“That’s why we needed alternative return channels: return points where we can collect hundreds of RePacks at once, bringing down the unit cost,” Hellgren says. In collaboration with partner companies including Inditex retailer Oysho and German coffee retailer Tchibo, RePack trialled another return method. Enabling customers to deposit empty bags and product returns in any physical shop of the brand offered a more cost-efficient alternative to postal services. RePack has worked with a number of consumer brands and e-commerce portals including Royal Canin, Zalando and Otto. The trial with Oysho has now turned into a commercial collaboration spanning different European countries. The consumer response has been overwhelmingly positive. In the case of Tchibo for instance, return rates reached over 80 %. It is up to the retailer to decide if the costs of returning the bags are passed on to the end customer. In the case of Oysho for instance, they pay a EUR 4.95 deposit which is refunded once the packaging has been returned. Other companies provide incentives such as vouchers or loyalty points.
Sustainability as a selling point
The biggest incentive may be the environmental benefit itself. A 2019 survey by the International Post Corporation(opens in new window) found that 60 % of respondents were seeking sustainable e-commerce packaging, and one in two were willing to pay a premium for this service. A 2021 study commissioned by the Fashion for Good initiative(opens in new window) concluded that the carbon footprint of reusable packaging was up to 82 % lower than single-use plastic mailers. Single-use cardboard boxes have an even higher carbon footprint due to their greater size and weight, generating more emissions during the transport phase. Moreover, 87 % less plastic waste is generated with reusable mailers, regardless of the recycled content of plastic packaging. Made from recycled polypropylene, RePack bags offer a very sustainable alternative to single-use solutions, meeting consumer expectations and enabling companies to fulfil their green commitments. Convincing brands and other potential partners such as logistics companies to adopt the solution in the long run has proven challenging, Hellgren acknowledges. ”The Commission’s recent proposal to end wasteful packaging(opens in new window) could be a game changer,” he notes. The proposal sets minimum targets of 10 % by 2030 and 50 % by 2040 for reusable e-commerce packaging.
