Finnish reusable packaging provider RePack is withdrawing from the reusable shipping packaging business for fashion e-commerce. The company cites a lack of regulatory impetus and a declining prioritisation of sustainability issues within the industry as reasons for the decision.
RePack was launched in 2011 with the aim of transferring the deposit system known from Finland to online retail. According to its own statements, the company has worked with more than 300 brands in Europe and North America in recent years, including H&M, Zalando, Inditex and Amazon.
The company states that two years ago it expected stronger promotion of reusable packaging through the European Packaging and Packaging Waste Regulation (PPWR). At that time, the expectation was that a significant proportion of packaging would have to be reusable from 2030 onwards.
Criticism of exceptions in the PPWR
However, according to RePack, mailers, bags and boxes have been exempted from the corresponding take-back requirements. In a statement, the company blames the influence of lobby groups for this.
At the same time, RePack points to altered economic conditions. Several years of global crises and uncertainties have led to sustainability goals being relegated behind other priorities in many companies. While sustainability continues to be described as important, in practical implementation it often has lower priority.
Focusing on the circular economy and technology in the future
With the discontinuation of its reusable service for fashion e-commerce, a business model that was among the early pioneering approaches for reusable shipping packaging in online retail comes to an end. RePack announced that it will focus on new business areas at the intersection of the circular economy and technology in the future. Further details will be revealed at a later date.
In parallel, the company is offering remaining stocks of its reusable shipping bags for sale. The packaging is intended to be particularly suitable for internal logistics and shipping applications.
Source: RePack
