Unwanted Christmas gifts in Australia to hit USD $1bn

The Australia Institute has estimated that unwanted Christmas gifts in 2024 will result in waste valued at USD $1 billion, with a considerable portion of Australians, about 27%, likely to receive gifts that they will not use.

Nicholas Woodward, Country Manager of Pack & Send, addressed the environmental challenges posed by high volumes of unwanted gifts and returned parcels during the festive season. "The implications are quite significant – it's a challenge the entire logistics industry faces. Every return adds to the carbon footprint, with transportation emissions being a big factor. There's also the packaging waste–lots of it ends up in landfill," said Woodward.

He noted that returns, particularly in sectors such as fashion or electronics, often remain unsold due to damage or the costs associated with repackaging. "Some returned items, especially in industries like fashion or electronics often don't even get resold because of damage or costs associated with repackaging – particularly after the Christmas period when returns are at their peak. It's not just about handling the volume but also handling in a way that doesn't unnecessarily harm the environment," Woodward explained.

Woodward highlighted the ongoing nature of sustainability challenges. "Sustainability is not a one-time effort. The holidays bring their challenges but it's an issue that both businesses and consumers must consciously tackle together all year round," he said.

The impact of excessive packaging was also addressed. "The consequences of overpackaging are huge. A lot of the packaging typically used during the festive season isn't biodegradable, so it sits in landfill for years. Even recyclable materials, while better for the environment, require energy-intensive processing to reuse," Woodward remarked.

He further noted, "Overpackaging means bigger parcels and more space taken up on delivery trucks and ultimately more fuel is required to ship them, particularly during the holiday season when volumes skyrocket."

Despite the challenges, Woodward observed a shift in consumer attitudes towards sustainability. "Before Christmas, there's this rush for express shipping – everyone is trying to get their gifts delivered in time and speed often takes priority over sustainability. After Christmas, the dynamic changes completely. We see a massive wave of returns, often from people changing sizes, or returning things they didn't need," he said.

He added, "But interestingly, we've noticed more consumers thinking about sustainability. For example, choosing eco-friendly shipping or even gifting options like gift cards to avoid unnecessary returns."

Pack & Send advises consumers on ways to reduce the environmental impact of returns. Woodward suggested, "Streamline your returns with a centralised drop-off point instead of individual pickups, as this can reduce transport miles and emissions making the return process far more efficient."

He recommended the use of eco-friendly packaging. "Opt for eco-friendly packaging by switching to materials like recyclable boxes, compostable mailers or biodegradable fillers – every small change like this can make a big difference. Reusable packaging is also gaining traction and can cut down on waste significantly," said Woodward.

The approach that businesses can take in handling returns was outlined by Woodward. "Businesses need to be transparent with their customers on the environmental impact of returns and how it can affect them," he stated.

He elaborated, "Making the change starts with transparency. Share the data and show your customers what happens to returned items and their environmental footprint. Simple campaigns on email, social media or even at the checkout process can highlight these facts."

Woodward also warned about the environmental impact of expedited shipping methods. "Additionally, the role of one-day shipping can be a big contributor to emissions. It relies heavily on air transport or less optimised routes. During high-return periods like Christmas and the end-of-year sales, businesses can encourage customers to choose slower, consolidated shipping options," he advised.

Offering incentives for sustainable choices was another strategy mentioned by Woodward. "Offering small discounts or incentives for choosing no-return options or eco-friendly packaging can work well. Customers are often open to it if they know it's a more sustainable option, and it can also help take the pressure off the logistics network," he said.

Woodward emphasised the importance of proactive measures to reduce returns. "Set the right expectations through detailed product descriptions, accurate images and even videos can go a long way. Offering streamlined customer support such as live chats for pre-purchase queries can help customers make more informed choices," he suggested.

Analysing return patterns was highlighted by Woodward as a crucial step. "Analysing your return patterns is key. If a certain product or size keeps coming back, there could be a recurring issue that needs fixing. Digital solutions such as getting customers to upload photos of damaged goods instead of sending them back can be an ideal solution, reducing emissions while resolving issues faster," he noted.

Woodward called for collaboration between businesses and shipping companies to improve sustainability in the return process. "It's about collaborations. Businesses need to think about returns when they are designing their products and packaging–make it more durable, lightweight and easy to recycle," he said.

He concluded, "On the logistics side, companies like Pack & Send can help by offering more efficient return systems, like consolidation routes or drop-off points. These solutions are not just good for the environment but are often cheaper and faster for businesses too. When everyone plays their part, the impact can be significant."