When Returns Turn to Waste: A Closer Look at the Hidden Cost of Gifted Goods

By Quantra | April 20, 2025

This analysis is based on actual 2024 returns data from a single U.S. retail branch. Permission was granted to publicly share and analyze the data for educational and analytical purposes.

Nearly 7 out of 10 returned items were thrown away. That’s not just a lost sale, it’s a missed opportunity, a supply chain burden, and a growing sustainability problem.

At Quantra Solutions, we analyzed detailed return data from this store to uncover where waste really happens, and what we can learn from it.

Waste vs. Resale: The Bigger Picture

The majority of returned items were never resold. Instead, they were categorized as waste and likely discarded, destroyed, or donated in a way that prevented recovery of full value.

What’s Being Wasted?

Some product types were disproportionately represented in the waste category. These are often seasonal, style-sensitive, or hygiene-critical items, making them harder to inspect, repack, and resell.

The #1 Reason Behind Waste? Gifts

Surprisingly, the most common reason given for returns that ended up as waste wasn’t damage or defect. It was simply that the item was a gift.

Waste Peaks in December

While waste from returns was relatively consistent throughout the year, December stood out as the peak month. This highlights a predictable seasonal pattern that retailers can prepare for in their operations, communications, and sustainability strategies.

Takeaways

• Returns ≠ Reuse: Most returned items are not resold, which calls for better reverse logistics and restocking practices.
• Gifting drives waste: “Gift return” is the top reason for items that go to waste, suggesting a need for more flexible, user-friendly gift tools.
• December matters: Returns during the holiday season are especially waste-prone. Planning for this peak is essential for reducing landfill-bound products.

What Retailers Can Do

• Offer digital gift receipts and easy exchanges
• Invest in return inspection and refurbishment systems
• Use AI-powered return analysis to identify high-risk SKUs
• Promote circular programs like resale or donations