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High Pressure on Reverse Logistics: Why Fashion Retailers Brace for Impact in July

07 July 2025 | 4 minutes read

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With July well underway, the sales season is in full swing. From mid-season markdowns to end-of-line clearance, this is when carts fill fast… and returns pile up even faster. Behind the scenes, one area of e-commerce feels the strain more than any other: reverse logistics.

Retailers, particularly in the fashion and footwear space, face a perfect storm this time of year. High sales volumes, spiking return rates and rising operational costs put growing pressure on an already complex part of the supply chain.

If returns are the Achilles’ heel of e-commerce, July is one of the times throughout the year when the limp becomes most visible.

Returns surge in July - and retailers know it

Seasonal sales inevitably trigger a rise in product returns. Consumers rush to snag deals, often buying multiple sizes or colors with the full intention of returning some or most of them later. In the clothing and footwear segments, this behavior is especially pronounced.

According to the IPC 2025 Returns Report, fashion items have the highest return rates across all product categories:

  • Apparel return rate: 46%
  • Footwear return rate: 39%

These numbers climb even higher during discount-heavy periods like July, when shoppers make more impulse buys or stock up on seasonal styles they’re unsure about. The return motivation is simple: “It didn’t fit,” “I ordered more than one,” or “It looked different online.”

According to ZigZag Global’s 2024 data, the average return rate for fashion during promotional periods can spike by up to 60%, nearly doubling normal monthly rates. This seasonal volatility makes July and the holiday season the two biggest stress points for reverse logistics teams.

preparing the package for return in July

Reverse Logistics Under Strain

Reverse logistics is more than just putting a parcel back on a truck. It’s a highly coordinated process involving:

  • Customer return initiation (often requiring self-service tools)
  • Label creation and collection
  • Transport and consolidation
  • Condition assessment
  • Repacking or disposal
  • Refund or restocking processing

When return volumes triple over a short period, as they often do in July, the entire system faces bottlenecks. Labor shortages, limited warehouse capacity, and rising transport costs only make things worse.

For many fashion retailers, this directly impacts profitability. IPC reports note that the average cost of a return can reach up to €15 per parcel once all handling, transport, and restocking costs are factored in.

It is estimated that handling returns can cost fashion retailers 20-40% of the product’s original price, factoring in depreciation and additional processing fees, further squeezing margins. This means a €50 item could effectively cost the retailer €20 in return-related expenses.

Why Fashion Gets Hit the Hardest?

Fashion and footwear are uniquely exposed in the returns economy:

  • Fit and feel cannot be tested online. This drives “bracketing” -ordering multiple sizes with the plan to return the ones that do not fit.
  • Seasonality matters. A returned item in August may no longer be resellable at full price.
  • Margins are tight. Fast fashion players often work with wafer-thin margins and can’t afford inefficient reverse flows.
  • Finally, fashion buyers are among the most return-savvy. 

According to an IPC 2025 survey, 61% of online shoppers say a retailer’s return policy influences where they buy clothing or shoes, and 52% will abandon a purchase if the policy seems unclear or costly. Convenience drives loyalty more than price discounts in many cases.

So how are brands adapting to the returns pressure?

1. Charging for Returns

Once taboo, charging for returns is becoming increasingly common. According to Landmark Global’s own research, 66% of retailers now charge for at least one type of return, especially in fashion. Brands like Zara, H&M, and Asos now apply return fees in select markets to offset rising reverse costs and discourage serial returners.

At what cost? According to a ZigZag’s 2023 Consumer Returns Report, retailers who introduced return fees saw an average 15-20% reduction in return rates, but risk alienating price-sensitive consumers.

2. Investing in Returns Technology

Retailers are embracing branded returns portals and APIs that allow shoppers to:

  • Initiate returns online
  • Choose convenient drop-off options (home pickup, lockers, post offices)
  • Track the status of their return. This not only improves the experience but also helps retailers triage returns and route them more efficiently.

Brands using automated return portals reduce processing times by 25-35%, helping cut operational costs and improve refund speed.

3. Smarter Routing and Local Consolidation

Instead of shipping returns back to a central warehouse abroad, many retailers are consolidating returns locally within the destination country. This approach lowers transport costs, shortens refund cycles, and reduces the carbon footprint.

Local consolidation can reduce return shipping costs by up to 40%, while also decreasing carbon emissions linked to transport by approximately 30%.

4. Resale and Recycling Initiatives

Forward-thinking brands are turning returns into resale or upcycling opportunities. Items that cannot be restocked at full price are sold via outlet platforms or repurposed into new inventory. This keeps unsold returns from becoming waste and aligns with growing consumer demand for sustainability.

According to industry analysts, the global resale market is expected to reach € 65.22 billion EUR by 2025, with many fashion retailers tapping into this trend to recover value from returns.

Landmark Global’s Role in Return Success

At Landmark Global, we see July for what it is: not just a spike in sales, but a test of your returns infrastructure. That’s why our returns solution is built to absorb the pressure, especially for fashion and footwear clients. Key advantages include:

  • Local drop-off: 154,000+ PUDO points worldwide
  • Fast refunds: Efficient consolidation and parcel routing
  • Custom returns portal: Full visibility and shopper control
  • Grading and processing: Value-added services to speed up resale

Whether your returns policy is free, fee-based or hybrid, what matters most is that it works - for your margins and your customers.

Final Thought: July Is Just the Beginning

This article is part of a broader July series on returns. Why now? Because this is when everything from policy clarity to operational resilience is tested.

Until then, you can revisit our full article on why your returns strategy matters more than ever: Why Your Returns Strategy Matters More Than Ever

We’ll share deeper insights into regional return habits, technology’s role in streamlining returns, and how to make reverse logistics not just manageable, but profitable. Stay tuned!

Sources:

https://www.zigzag.global/ 

https://www.ipc.be/ 

https://www.businessoffashion.com/ 

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Landmark Global is the trusted international logistics partner that powers your e-commerce growth. Reaching up to 220 destinations worldwide, our services include international parcel delivery, customs clearance solutions and returns management. It is our business to deliver your promise, wherever, whenever.