Fashion

Returns at Zalando: A look behind the scenes

Published

1 year ago

August 9, 2023

Amidst the bustling logistics site, a symphony of movement unfolds. A conveyor belt snakes its way through the space, carrying incoming parcels towards the workbenches. Workers in vibrant shirts open packages of various sizes. Meanwhile, nearby, shoemakers diligently work to spot clean some white sneakers. A glimpse into the inner workings of a return center* reveals a complex system designed to resell as many returned items as possible.

For many customers, the journey of a returned package remains a mystery. After dropping off their returns at the post office or arranging a pickup, they are left wondering what happens next. How are their items processed? What happens to them? In this article, we take a look into the inner workings of a return center to shed light on the steps involved in handling returned items.

Across Europe: A network of return centers

One of our customer promises is to offer the most seamless overall fashion experience with best-in-class convenience plus delightful and time-saving features and services. For this we have built one of the largest European logistics networks for fashion and lifestyle in recent years. In addition to our 12 logistics centers, which focus primarily on the processing and shipping of customer orders, we have a European-wide network of around 20 specialized return and refurbishment centers*. Operated by external service providers, these dedicated warehouses are close to the customer, where returned fashion items are efficiently sorted, processed if necessary and prepared for resale – with processes and standards developed by Zalando to ensure a high level of quality. This wide logistics network serves to prevent unnecessarily long transport routes so that we can reduce time to online and make these returns available for sale again.

Step by step: How we handle returned items

But what happens in these return centers across Europe? For this article, we visited a site that is operated by our partner CEVA Logistics. However, the process is basically the same in each of our return centers, since all items directly returned to Zalando – completely independent of their actual merchandise value – are carefully checked and sorted in a standard procedure. This applies to all fashion items sold directly by Zalando as well as items from partner brands who sell their products via our platform and use our Logistics Solutions. Partners who do not use our returns management system may have different processes in place over which we have no influence.
Let’s have a look at the main steps within our processes:

1. Goods receiving

Customer returns arrive at the warehouse in bulk by truck and then make their way to the employees’ individual workstations. There, the respective shipment is scanned and first checked against the order to ensure that the correct item has been returned to us and not a wrong article, one that has not been purchased at Zalando or a private item by mistake. If there are discrepancies, the case is referred to customer service for clarification.

2. Quality check

In the next step, it is checked whether the item is in perfect condition. The vast majority of our customers only try on the fashion items once – like this is the case in brick and mortar stores – hence, returned items are in general in a very good condition. Thus, we are able to offer them directly via our Fashion Store again. Accordingly, they are immediately sent to the center’s outbound area where they are compiled for transport to one of our customer-facing logistics centers.

3. Refurbishment

Sometimes the logistics workers see stains or loose threads during the check, or some garments need to be cleaned or ironed before we offer them again online through our Fashion Store. These items then go to the center’s refurbishment area (if available, otherwise to a dedicated refurbishment center) where tailors, shoemakers and cleaning experts do their magic and try to remove minor flaws. For example, there is a spot cleaning area where workers can use special high-pressure cleaners to remove discoloration from shoes, or a sewing shop that stocks sewing thread in every conceivable color to fix loose seams.

4. Outbound

If the fashion item was classified as perfect in the first place, or if the refurbishment of minor defects was successful, it is sent to the outbound area. The checked items are not shipped directly from the return centers for the next customer order. Instead, they are first consolidated and brought back in bulk to one of the 12 logistics centers within our network from where they start their journey to our customers again. We decide exactly where to store the items based on factors such as the likelihood of resale in the region or market.

Duty of care: How we handle the remaining stock

What about returned garments and shoes that could not be refurbished because minor defects could not be fixed – for example a stain on the sole of a sneaker that cannot be removed? Such articles, as well as merchandise from the previous season and items that are only available in a few sizes, we can offer throughout Germany in our Zalando Outlets. Items from previous seasons are also frequently offered on “Lounge by Zalando”. In addition, we take the opportunity to donate remaining stock to organizations such as humedica or sell it to wholesale partners. In order to fully comply with our duty of care, we only work with selected aid organizations and wholesale partners whose headquarters are located within the EU and who are therefore also bound by applicable laws.

This way we can ensure that no goods have to be destroyed if they can still be used in their original form. Only in exceptional cases are we required to destroy articles. For example, this might be necessary for health or legal reasons (e.g. in the case of product recalls when limit values are exceeded, pollution, pest infestation) or if products are broken and cannot be resold.

*Within our network, there are 1) sites that focus exclusively on the inspection and sorting of returns, 2) sites that focus only on refurbishment, and 3) sites where both process steps are performed. In addition, some of our 12 customer-facing logistics centers handle a low volume of returns for capacity reasons. For simplicity, we call them here return centers.

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Returns at Zalando: A look behind the scenes

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Returns at Zalando: A look behind the scenes

Across Europe: A network of return centers