A new government-commissioned study examines whether the Netherlands could introduce mandatory return charges for online clothing and the environmental impact that would have. While the concept seems simple, the findings are far more complex and highly relevant for e-commerce leaders.
Returns: a structural and costly habit
Free returns have become the norm: 71% of Dutch fashion webshops charge no fee for returns. Online fashion purchases have grown rapidly (29% of all clothing in 2024), representing around 255 million items per year. With an average 35% return rate, return behaviour has become habitual rather than intentional; customers often buy impulsively, bracket sizes, and treat free returns as part of the service.
About 90% of returns are resold, but 10% are ultimately recycled, incinerated, or landfilled abroad; a significant waste stream. The environmental footprint of online fashion is substantial: 2.2 megatonnes of CO₂-eq per year, of which 75 kilotonnes stem from items that are returned but not resold.
What if returns weren’t free?
The study models the impact of mandatory return fees on all online fashion purchases. The results are striking:
- Returns could drop by 15%
- Production of new clothing could fall by 7%
- Total emissions could decrease by 7.3% (about 160 kilotonnes CO₂-eq)
This means environmental gains come not just from fewer return shipments, but from reduced over-ordering and lower production volumes.
Legally, mandatory return fees are not feasible (for now)
A national obligation to charge return fees is not permitted under current EU consumer law. Only a future revision of the European Consumer Rights Directive could enable such a measure and that is unlikely in the short term. Other legal routes (EPR, Digital Services Act, Circular Economy Act) also fail to provide a foundation.
Enforcement challenges are substantial too, especially given the high volume of fast-fashion parcels shipped directly from outside the EU.
The real progress will come from the sector itself
The study concludes that meaningful reductions in return volumes will need to come from voluntary industry measures rather than regulation. Promising strategies include:
- Fit innovation: virtual fitting rooms, improved size charts, AI sizing tools
- Charging standard shipping costs to promote more conscious purchasing
- Restricting after-pay options and long return windows
- Voluntary return fees, which raise margins and curb excessive returns
- Industry collaboration on uniform sizing, return policies, and product information
Governments can support by pushing for EU-wide sizing standards and funding innovation pilots.
What this means for e-commerce
Operationally, fewer returns mean lower logistics costs, fewer slow-moving items, and a more sustainable profit model. Strategically, the shift from maximising volume to maximising value per order becomes essential. Retailers who invest early in sizing technology and smarter return policies stand to gain most; financially and environmentally. Mandatory return fees may be off the table, but the pressure to reduce returns is here to stay.
Walther Ploos van Amstel.