By
DPA
Translated by
Barbara Santamaria
Published
Jun 14, 2019
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Zalando to outsource returns management

By
DPA
Translated by
Barbara Santamaria
Published
Jun 14, 2019

The online fashion retailer will soon stop managing its customer returns in-house. A third-party specialist will handle the retailer’s returns in its logistic centres in Erfurt, Lahr and Mönchengladbach, German newspaper Wirtschaftswoche reported on Friday.


Zalando


According to the report, Zalando’s official reason for the move was to streamline processes in its logistics centres. But internally, the decision is considered an austerity measure, said Wirtschaftswoche. According to a spokeswoman, the transfer will affect 570 permanent employees, who will be gradually moved to other departments. Zalando’s high return rate is one of its biggest cost drivers, with almost half of all purchases sent back to the e-tailer, according to experts.

Zalando has confirmed this figure. About 97% of returned items are subsequently re-sold through the Zalando shop, a spokesperson said. Most of the remainder is sold though other proprietary platforms or outlets. Around 0.05% of returns are destroyed “if this necessary for health reasons such as in pest infestation, pollution or the like.”

Earlier this month, environment minister Svenja Schulze raised fresh concerns over the destruction of new, returned goods. This June, the SPD politician wants to propose a law that will make it harder for retailers to continue with this practice.

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