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Refurbishment as a growth lever: Turning returns into renewed value

With smart refurbishment, brands can recover up to 98% of return value, cut waste and meet new EU rules. Discover how ZEOS’s ecosystem turns challenges items into profitable assets.

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Returned clothes are often seen as a setback: expensive to handle, tricky to resell and damaging to margins. But with the right approach, they don’t have to go to waste or linger on clearance racks. Refurbishment transforms these problem items into profitable stock that supports circularity and keeps customers coming back.

Returns as recoverable revenue

Returns aren’t just refunds waiting to happen, but delayed revenue waiting for the right process to fulfil its potential. In fashion e-commerce, as many as one in two items bought online find their way back to the warehouse. In fashion e-commerce, refurbishment can turn a large share of those returns back into sellable items, reducing loss and keeping brands competitive.

From setback to value recovery

At ZEOS, refurbishment is a value‑recovery system. Instead of writing off goods, we return them to stock for resale. Done well, brands can reclaim up to 98% of return value, protecting margins and customer trust. By extending product life, refurbishment reduces waste, minimises markdowns and supports responsible fashion.

Want to see how it works in practice? Watch the Business Casual episode on refurbishment where Daniel Jesske, Head of Service Provider Management at Zalando, dives into the specifics of the refurbishment process.

Business Casual Ep. 13 - From returns to refurbishment (Thumbnail)
Learn more about refurbishment in this episode of Business Casual featuring Daniel Jesske, Head of Service Provider Management at Zalando.

Why refurbishment is a commercial necessity

For fashion brands, refurbishment is a commercial must. In fact, around 96% of customer returns are in perfect condition or only need minor fixes that can be carried out on the spot, like removing lint with a brush, before they’re ready for resale. The rest can be handled in dedicated centres for deeper repair.

By keeping products in circulation, refurbishment extends product life and reduces the need for markdowns or disposal. It also puts you ahead of tightening regulations. The EU Strategy for Sustainable and Circular Textiles aims for all textile products on the market by 2030 to be durable, repairable and recyclable. And new Ecodesign rules will soon ban the destruction of unsold textiles and footwear altogether. For brands, compliance is a chance to prove responsibility and strengthen loyalty.

With refurbishment, returned clothes can be back online in under 11 days. That means you don’t miss the selling window, and you protect your margins while meeting customer demand.

Refurbishment Infographic

Fashion-specific refurbishment needs

Not all garments are created equal and neither are their repairs. Fashion refurbishment requires specialised skills and tools that go well beyond a standard warehouse check. From a silk blouse to a pair of leather boots, every product class demands its own dedicated process.

Tailoring and sewing expertise

Loose hems, missing buttons or weakened seams are common in customer returns. On-site tailors keep thread banks that match every SKU, making quick fixes seamless. These small but crucial touches ensure items look as good as new, preserving both quality and brand reputation.

Refurbishment - Image Sewing

Shoemaking and sole care

Footwear needs a different level of attention. Integrated cobblers handle scuff removal, sole buffing and lace replacement. With specialist shoemaking services, even heavily tried-on shoes can re-enter the inventory with their original polish restored.

Refurbishment - Image Shoemaking and sole care

Ozoning, deep cleaning and special materials

Slight odours are neutralised in ozone closets in as little as 30 minutes, with no harsh chemicals required. Spot-clean stations deal with tricky marks like makeup. And for delicate categories like silk dresses or leather jackets, artisan processes are applied with the care they deserve.

Together, all these services transform unwanted clothing into refurbished items ready for a second life, helping brands keep their promises of quality while extending product longevity.

Scaling through ecosystem partnerships

Refurbishment at scale is not something most brands can pull off alone. Building an in-house operation means high upfront costs, hiring niche talent and dealing with long set-up times. For many, the solo-brand approach might quickly become expensive and inefficient.

The power of orchestration

ZEOS acts as the conductor in this complex operation. By managing a network of around 20 specialised refurbishment centres across Europe, brands gain instant access to expertise without building everything themselves. Common processes and integrated tech ensure consistency, so whether it’s a shoemaker in Milan or a cleaning station in Berlin, the outcome meets the same high standard.

Economies of scale and smarter insights

Pooling volumes across brands drives down per-item costs and accelerates improvement. And because the ecosystem shares data, return insights can feed back into design, manufacturing and quality control, which closes the loop between logistics and product development.

Refurbishment in numbers

The refurbishment numbers speak for themselves. Here are some highlights that show just how effective a scaled, ecosystem-driven model can be:

  • 98% of returns resold without ever leaving the ZEOS network (ZEOS returns statistics, Q2 2025).

  • Under 11 days from return receipt to resale-ready stock (Zalando operations report, May 2025).

  • Full-price sell-through of refurbished clothes matches that of new stock in customer trials (ZEOS customer pilot, March 2025).

These are proof that smart refurbishment can protect margins, reduce environmental impact, and keep customers buying with confidence.

The double win for fashion

Refurbishment can be a double win: recovering revenue while meeting rising sustainability expectations. By giving products a second life, brands protect their margins, comply with new regulations and reassure customers that fashion can be both profitable and responsible.

By plugging into an ecosystem like ZEOS’s, you skip the DIY headaches of high costs and complex set-up, while instantly accessing a network of specialists who live and breathe fashion refurbishment. It’s faster, more efficient, and built for the scale modern e-commerce demands.

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