Small fashion retailers preparing for Black Friday have another task alongside pricing and dispatch: deciding how returned stock will get back on sale while customers still want it.
Returns specialist ShopReturns has supplied BritishSME with hypothetical examples showing how delays, markdowns and resale prospects can change the amount recovered from a returned garment. The examples are useful as questions to test against a retailer’s own records; they are not evidence of typical savings or results achieved by the company.
What the coat example actually shows
One example starts with a coat priced at €120 excluding VAT. ShopReturns assumes that local processing allows a 5% markdown and a 90% chance of resale. After the modelled selling fees, fulfilment and processing costs, including a residual value for stock that does not sell, expected recovery is €95.17.
The alternative assumes a five-week delay, a 30% markdown, a 60% resale probability and €3.50 additional transport cost. That produces €45.09. BritishSME recalculated both figures from the supplied inputs.
The roughly €50 difference is driven by those combined assumptions. It is not a measured saving from avoiding a cross-border parcel journey. Neither the delay nor the markdowns and resale probabilities are established market averages.
Recovery here also does not mean overall profit. The calculation excludes the original product cost and several costs of the first transaction, and uses VAT-exclusive values. Customs charges and other applicable costs would need to be added. It assumes unsold goods retain a liquidation value; handling costs for that fallback are not separately deducted.
Build a returns decision from your own figures
For a small retailer, the practical starting point is a recent batch of returns. Record when each item arrived, when its condition was assessed and when it became available for sale again. Compare the eventual selling price with the costs of transport, handling, preparation and the next sale.
Separate items that can be restocked immediately from those needing work. A missing tag, damaged packaging and visible wear may require different decisions. Compare realistic resale routes, including their fees and likely selling times, before choosing where returned stock should go.
Ask a prospective returns provider what its quoted price includes and how quickly it supplies inspection results. A low parcel charge alone does not establish the total cost or the value ultimately recovered. Test more cautious resale assumptions as well as an optimistic case.
Prepare the workflow before the rush
Give each return a clear next step and a person responsible for it. A parcel waiting for inspection and an item already photographed for resale should not disappear into the same stock count. Set a regular review point for goods that remain unsold, so the next decision uses current information about condition and demand.
Keep the customer-facing journey in view as well. BritishSME’s guide to Christmas delivery-price checks covers a separate part of seasonal preparations: making delivery charges clear before purchase. Returns handling and the original buying experience both deserve attention before promotions increase the workload.
Keep the EU rules in perspective
The European Commission says the EU ban on destruction of unsold clothes, accessories and footwear began applying to large companies on 19 July 2026, with medium-sized companies following in 2030. The Commission also explains that small and micro-businesses are exempt from these requirements.
This does not establish that every small UK retailer selling into Europe faces the same requirements. Businesses should check the rules for their operations and location before making disposal decisions. A disappointing resale calculation does not itself determine whether destruction is legally permitted.
Sources and article notes
This article was prepared following material supplied by ShopReturns through AP Communication, with supporting methodology received on 4 November 2026. ShopReturns sells returns services and has a commercial interest in the subject. No payment was received for this editorial coverage.
The numerical example is hypothetical and is not a logistics quotation or a forecast. Regulatory background: European Commission explanation of the unsold clothing rules. Source checked on 5 November 2026.
