The law will prohibit companies the destruction of stock unless it’s unusable
According to Ecommerce News, the Cabinet of Germany has launched a draft law aimed to improve waste avoidance and increase recycling. This means that the destruction of products will be more difficult, so retailers will have to find a better way to deal with returns.
Many online retailers are currently destroying their stock to free up some extra space in their warehouses. From now on, the law puts more responsibility on companies. Besides, manufacturers and dealers must clearly document how they handle unsold goods. The companies could also sell or donate these products for a lower price, as an option.
Meanwhile, Zalando, one of the online retailers, claimed to be ready for the new regulation.
Zalando has a return rate of around 50%, but it claims that almost 97% of its articles are sold again via Zalando Shop, Zalando Lounge or outlet stores, or will be donated.