How AI is Transforming Retail Returns into Charitable Donations

Returns have long been a thorn in the side of retailers. Luxome, a company that once struggled with its luxury weighted blankets flooding resale markets, has found a new solution. By collaborating with LiquiDonate, a software using AI to connect returns with nonprofits, Luxome is changing the game.

The Waste Problem

Retail returns are notorious for ending up in landfills. It’s not just a waste of resources but an environmental issue. Hyaat Chaudhary, founder of Luxome, couldn't stand the thought of their blankets being part of the problem. Initially, a direct donation of 5,000 blankets backfired. Customers found their products on resale sites, impacting new sales.

Visualize this: A system that not only saves costs but aligns with sustainability goals. That's where LiquiDonate steps in.

AI-driven Solutions

LiquiDonate's platform is AI-native, employing computer vision to assess returns and decide their fate. Whether a product is fit for donation or needs recycling, the AI evaluates it all. The concept is simple, optimize outcomes for both financial and societal impact. With inputs like condition and proximity, each item finds the best path forward.

Numbers in context: With retail returns reaching an estimated $850 billion in 2025, the stakes are high. LiquiDonate’s approach not only reduces landfill waste but provides a tax benefit for retailers. It’s a win-win.

Transforming Challenges into Opportunities

LiquiDonate has gained traction with 4,300 nonprofits, handling bulky items like furniture and inexpensive apparel. For Luxome, the shift means no more returns to warehouses unless items can be restocked. Instead, products are directed to nonprofits, saving on processing costs and landfill fees.

This transformation begs the question: Why aren’t more retailers adopting this model? The trend is clearer when you see it, and Luxome’s success story could motivate others.

Retailers must adapt or risk falling behind. The future of returns isn't just about minimizing loss, it's about maximizing impact.