Manisha explains how new EU regulations are reshaping e-commerce returns and argues that peer-to-peer returns models can cut waste and costs. She covers sustainability challenges in reverse logistics and how retailers can adapt.
Foreign welcome back to Kahoot Commerce Brief. Here's a prediction you're not hearing from most logistics leaders. The biggest threat to E commerce returns isn't customer fraud or rising costs. It's regulation. And it's coming fast. Here's the key insight. The EU green deal is about to force retailers to fundamentally rethink return. Not tweak, not improve, but completely reinvent the system. Under the new directive, brands will be on the hook for what they sell, including how it's disposed, reused or recycled. And that includes returns. The era of sending items to landfills or liquidation bins and calling it a day over. This is producer responsibility at scale and it's going to change how every cross border brand handles reverse logistics. But here's the twist. This isn't just an EU problem, it's a warning shot. What starts in the EU rarely stays there. California, New York and other states are already exploring similar sustainability legislation. And the reality is the current model can't survive the shift. Right now, returns are routed back to warehouses, inspected, maybe restocked or tossed entirely. That system is expensive, wasteful and completely unscalable under new regulatory pressure. So what's the answer? Peer to peer returns. Instead of shipping a return across the country or across borders, you match it with a new buyer locally. Customer A sends it directly to customer B. No warehouse, no waste and no carbon footprint. That's the model we're building at Kahoot because if you want to reduce the cost and environmental impact of returns, you have to remove the middle entirely. Here's what that unlocks. Faster resale cycles, lower emissions, less packaging waste, and a smarter path to compliance with regulations that are only going to get stricter. And let's be honest, sustainability isn't just a checkbox anymore. It's a requirement from governments, customers and investors. So here's the takeaway. If your return strategy still revolves around warehouses and restocking, you're not future proof you're falling behind. The green deal is coming and peer to peer is how smart brands get ahead. Thanks for tuning in to Kahoot Commerce Brief. I'm Manisha. Until next time, ship smarter.
