Online shopping is the new normal in key Western European markets. With it there has also been a tremendous emphasis on returns as all major online shopping platforms like Amazon offer them. Globally there are 2 billion returns taking place a year. The fact that 10 million returned gifts end in landfills every year has not deterred the rate at which they are returned.

Online shopping is at its peak. 10 million returned gifts end up in landfills yearly. Unfortunately, the harsh reality is that for many companies, it’s often cheaper to make a new product than to open, check, repack and resend the returned ones. This results in a massive product return landfill issue

Philips wanted to raise awareness for the hidden issue of e-waste, while becoming part of the solution.

Philips had to overcome two barriers: lack of awareness of e-waste and consumers’ negative perception of refurb products. By making the problem impossible to ignore, Philips inspired action on the spot. Philips first championed refurb products, offering them at a lower price, in pristine condition with a longer warranty. They then prioritized their sale over new products to ensure 0 Philips products ended in landfill.

This strategy of making returned products not only an altruistic alternative, but also one that offers the consumer more value over new, resulted in them being completely sold out.

Philips promoted their returned products as an exclusive range - “The Better Than New” Refurb Editions. Offering lower prices with longer warranties and a message about being better for the planet.

They flipped their e-commerce model: selling only the refurbished products – instead of new until every single refurbished product was sold out.

They also pilled the returned gifts virtually in the city. Instead of a landfill, turning them into an interactive digital store in which you could buy Philips Refurb Gifts. Reinventing the customer experience while making potential landfills smaller, one gift at a time. Consumers understood clearly that Refurb Editions were of pristine quality, with a lower price and longer warranty. A fact that was verified with the extreme performance of the initiative.

Selling their returned products, became the fastest promotion in Philips history. 52 thousand returned products were sold, stopping 185 tons of e-waste and an estimated 277 tons of CO2 emissions.