For retail and ecommerce teams across Europe, returns don’t look the way they did just a few years ago.

The percentage of EU consumers who shop online grew from 62% to 78% in the past decade. As ecommerce volume has grown, so has the operational pressure around returns. 

Complicating matters, new regulations around textile waste and product destruction make it harder for brands to simply write off returned inventory.

The takeaway is clear: returns can’t be treated as a loss line item. They require a deliberate strategy to recover value and protect margin.

For some brands, resale plays a role. But the bigger opportunity is rethinking how returned products move through the business, from intake and sorting to recommerce and other recovery paths.

The Growing Returns Pressure for EU Brands 

Rising return rates and tightening regulations put pressure on fashion brands across Europe. The average ecommerce fashion return rate is 20%, one in every five garments. But the bigger challenge comes after the return: an estimated 22-44% of returned textiles never reach another consumer, leaving brands with growing volumes of unsellable inventory.

At the same time, new regulations limit how excess inventory can be handled. EU measures restrict the destruction of unsold apparel and increase producer responsibility for end-of-life products.

Together, these pressures are turning returns management into a strategic priority for fashion brands across Europe.

What European Brands Can Do Now 

1. Improve the Efficiency of Returns Processing
The returns bottleneck isn’t logistics, it’s the assessment decision. Every returned item needs a verdict: restock, resell, discount, donate, or dispose. Brands that build clear criteria for that decision, applied consistently at intake, move faster and recover more. The ones that don’t end up with warehouses full of unsorted stock and shrinking options.

2. Stop Treating All Returns the Same
Not all returned items have the same recovery potential, and routing them through a single process guarantees you’re undervaluing many of them. A lightly worn jacket returned within two weeks has completely different options than a damaged item returned after three months, but many brands handle both the same way.

The brands recovering the most value are the ones that triage returns at intake: fast-tracking near-perfect condition items back into primary stock or premium resale, while routing clearly damaged goods earlier to discount or donation channels. That segmentation doesn’t require a massive operational overhaul. It starts with clearer assessment criteria at the point of return.

3. Build the Right Infrastructure With the Right Partner
Every return must be inspected, assessed, and routed in a way that is consistent and compliant, especially as EU regulations tighten. That requires systems that connect returns intake, sorting, disposition decisions, and fulfillment, while providing clear reporting on where inventory goes. For most teams, that means working with a partner who understands both the regulatory landscape and the operational complexity behind modern returns management.

Your Window to Act

Returns volumes aren’t going down. But most brands are still treating them as a cost to absorb rather than inventory to recover. That gap is where margin is being lost — and where brands that build smarter processes will pull ahead.

For brands ready to move beyond patchwork fixes, Trove connects returns intake, product routing, and resale channels into a single platform built for the European regulatory environment. Less scrambling across disconnected systems, more visibility into where inventory actually goes. This gives brands the control and visibility they need to recover more value from returns while navigating tightening EU regulations. Learn more.

Your Returns Questions, Answered

Why are returns becoming a bigger challenge for European fashion brands?
Ecommerce growth has increased return volumes, especially in fashion where return rates average about 20%. At the same time, EU regulations now limit the destruction of unsold goods, making returns harder for brands to simply write off.

What happens to returned clothing in Europe?
Many returned garments never reach another consumer. Estimates suggest 22-44% of returned textiles are not resold, often due to slow processing, damage, or lack of clear recovery pathways.

How can brands recover more value from returned inventory?
Brands can recover more value by improving how returned items are inspected, sorted, and routed. Faster processing increases the chances that products can be resold instead of becoming unsellable stock.

How can brands manage returns while staying compliant with EU regulations?
Brands need systems that track returned inventory and route products to resale or recovery channels. Returns Management Systems help ensure items are handled efficiently while meeting new regulatory requirements.