🗞️ New Special Report: State of Retail Returns Fraud in 2026
LiquiDonate automatically routes unsellable returns to nonprofits, transforming a financial liability into a triple win for supply chain costs, environmental impact, and brand reputation.



Use our Shopify App, find us on Loop, or any one of our many integrations for your existing RMS or WMS. After a quick setup call with our team, you're ready to rock!
Select the SKUs or collections to automatically reroute to a vetted, local nonprofit when a customer starts the return.
Sit back and watch your label costs drop. You'll also get documentation to submit for tax benefits. Your CFO can than you later.
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Luxury comfort brand, Luxome, faced a common retail challenge:Â excess inventory accruing dollars while taking up valuable space, with no efficient path forward, until he found LiquiDonate.
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Landfilling or sending unsellable items back to the warehouse costs more than using ReturnsDirect.

Sustainable operations are no longer optional.
A recent Ernst &Â Young study found that price is just as important as sustainability among consumers buying luxury goods.
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By donating surplus inventory to 501 (c) (3)Â organizations, you can be eligible for significant tax benefits to offset the losses. Â

$288 billion worth of unsold inventory gets sent to the landfill each year! Eliminate waste to help build the solution, not add to the problem.
By routing returned items directly from the customer  to a local nonprofit, those goods skip the warehouse and any extra costs associated with it.
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Contact us with any questions and a member of the team will get right back to you.
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Yes! ReturnsDirect integrates directly with Loop Returns through a partner integration, and with most existing RMS or WMS platforms through additional API connectors. Setup starts with a quick onboarding call, after which brands choose which SKUs or collections route to a nonprofit automatically when a customer initiates a return. Contact us to find out what type of integration you’ll need.Â
Yes! ReturnsDirect integrates directly with Shopify through a dedicated app. There’s also special pricing for Shopify merchants. You can download the LiquiDonate app for free from the Shopify App Store.Â
Yes, admins select specific SKUs, collections, or custom filters to tag items to route through ReturnsDirect; it won’t automatically take all inventory. Anything outside those filters follows the brand's normal returns process. Brands can also add a standard "send-to-warehouse" disposition option for any SKU, so the choice to donate versus restock stays fully in their control.
No, there's no minimum return volume required to use ReturnsDirect. The starting plan for Shopify users includes a number of nonprofit donations per month, with overages billed per item, and plans scale up from there for higher-volume brands. Smaller brands can start for free with no commitment to a fixed volume.
No. This is one of the core differences between donating through ReturnsDirect and donating on your own. Local nonprofits and schools often can’t handle the volumes that are dropped off in bulk from retailers, so they end up selling them and then ultimately those items are sold as new on sites like marketplace or ebay.
There are also bad actors out there trying to commit donation fraud. Using a vetted donation network like LiquiDonate means that the right items with the right quantities go to the organizations that need them most, and they also agree not to resell if that is what the retailer requires.Â
Tax donation receipts, including detailed donation and nonprofit information are included with all of LiquiDonate’s services. In the United States, under IRC Section 170(e)(3), C-corporations that donate inventory to a qualified 501(c)(3)nonprofit can deduct “cost basis plus half the unrealized appreciation, capped at twice cost basis.” LiquiDonate does not claim to provide tax advice so it’s important to confirm your organizations specific qualifications with a tax professional.
Return policies shape fraud risk directly. Generous, low-friction policies increase legitimate sales but also open the door to abuse like wardrobing, empty-box returns, and counterfeit switching. Roughly 9% of all retail returns are now fraudulent, amounting to an estimated $127 billion in the US alone in 2025. The tradeoff isn't cut and dry–stricter policies cut fraud but frustrate honest customers. Read our State of Retail Returns Fraud in 2026 report breaks down the most common tactics and how retailers are responding.
A clunky returns process with confusing instructions, slow label generation, no clear next step is one of the fastest ways to frustrate a customer and lose a repeat sale. 82% of consumers now factor a brand's return experience into where they choose to shop. ReturnsDirect plugs directly into a brand's existing platform (Shopify, Loop, and others) so customers get a fast, simple way to generate a return label.
Most retailers send returned clothing to a warehouse for inspection, then restock, resell through liquidation, or destroy it. Return shipping alone can cost $8 to $12 per item, so worn or out-of-season apparel often isn't worth restocking, and destruction is frequently cheaper than sorting it, which is how usable clothing ends up in a landfill. That’s why LiquiDonate was started - to turn those perfectly good items into something good for retail brands, people, and the planet. To make sure our services remain lower cost than landfilling, using ReturnsDirect skips the warehouse step entirely, routing unsellable returns straight from the customer to a vetted nonprofit, cutting those shipping and rehandling costs.
Yes! Returned clothing adds to a textile waste problem that's already large. 66% of unwanted clothing and textiles in the US end up in a landfill, and only about 15% gets recycled, partly because destroying a return is often cheaper than the labor of reselling it. ReturnsDirect interrupts that path by routing unsellable returns to nonprofits instead of the warehouse, giving the item a second life instead of decades in a landfill.Â
Sizing and fit lead by a wide margin: 75% of apparel shoppers say they've returned something because it didn't fit. Damaged or defective items are the next biggest driver, cited by 81% of consumers, followed by inaccurate product descriptions at 14%. None of those are fully preventable, which is why ReturnsDirect focuses on what happens after the return arrives: turning it into a tax-deductible donation instead of a warehouse cost.
The biggest lever is better product information, since nearly half of all returns trace back to sizing, fit, or photos that don't match the real item. Restrictive return windows tend to frustrate customers without cutting volume much, while accurate sizing and imagery actually move the needle. Even with strong prevention, returns never hit zero, unfortunately, which is why ReturnsDirect focuses on routing unsellable returns to nonprofits instead of absorbing warehouse and destruction costs.