Closing the Loop on Returns: INTERSPORT, Austrian Post, and FH Upper Austria Launch Circular Returns Pilot

INTERSPORT, Austrian Post, and FH Upper Austria are jointly testing a resource-efficient shipping solution that enables returned products to be forwarded directly to the next buyer.

As online retail continues to generate large volumes of returns, the need for more sustainable logistics solutions is becoming increasingly important. To address this challenge, INTERSPORT, Austrian Post, and FH Upper Austria have tested an innovative concept designed to make online returns more efficient. At the heart of the project are so-called circular returns, which shorten transportation routes by forwarding returned items directly to new buyers.

Instead of sending returned products—unused and unworn items in new condition—back to the online retailer, an online matching process identifies new customers, and the goods are shipped directly to them. This approach reduces additional transportation and packaging requirements.

“This project demonstrates how circular economy principles can be implemented through innovative logistics solutions,” explains Sarah Pfoser, Senior Researcher at the Logistikum of FH Upper Austria and project lead. “Our analyses show that circular returns can reduce emissions generated during the returns process by approximately one quarter. This highlights their significant potential to make e-commerce more resource-efficient.”

“Sustainability is a key priority for us,” says Günther Junkowitsch, Head of Supply Chain Management at INTERSPORT. “Our cooperation with Austrian Post allows us to handle returns efficiently while conserving resources. The successful pilot test demonstrated that the concept works. It marks an important step toward further reducing our environmental footprint in the future.”

Quality assurance is a central element of the concept. The condition of returned, unworn merchandise is monitored through digital documentation. Austrian Post manages the transfer of parcels using a secure, anonymized shipping label, ensuring that customers’ personal data remains protected.

“Circular returns represent an entirely new logistics approach in e-commerce: products are no longer simply returned but are forwarded directly to their next destination,” says Peter Umundum, Deputy CEO and Board Member for Parcel & Logistics at Austrian Post. “As Austrian Post, we are actively driving this innovation and creating a closer connection between retailers and consumers throughout the logistics process. To support this, we have developed a new shipping label that allows customers to return and forward parcels conveniently without exchanging personal address information. Circular returns are therefore a truly innovative logistics solution on every level.”

The project results were scientifically evaluated by FH Upper Austria and will serve as the foundation for further implementation of the concept. The life cycle assessment considered 18 different scenarios and identified average savings of 25.3% in CO₂ emissions across the entire returns process.

At the same time, accompanying market research revealed that more than half of surveyed INTERSPORT customers would be willing to use the concept. The Circular Economy Research Group at the Logistikum of FH Upper Austria has a longstanding partnership with both Austrian Post and INTERSPORT. This collaboration has already produced several successful circular-economy initiatives, including the reusable packaging solution Post Loop.

This project was funded by the Austrian Federal Ministry for Innovation, Mobility and Infrastructure (BMIMI) and implemented through the Logistics Funding Program administered by SCHIG mbH (Rail Infrastructure Services Company).

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