How Amazon is redefining the expensive and wasteful process of returns

Returns cost companies millions and create billions of pounds of waste. Now, Amazon is making the process more efficient in hopes of enticing customers with easy returns.

Forrester Research estimates 25% of items bought online are returned, with $207 billion in returned commerce goods expected this year. Amazon was dumping millions of pounds of this unused inventory, but last month the company started instead donating some of it to charities in the U.S. and U.K.

Free return options are now offered on almost all Amazon orders, with a newly expanded partnership that allows customers to return unboxed items at any Kohl's store for free.

Amazon says the majority of returned goods are resold to other consumers or liquidators, returned to suppliers or donated.

Watch the video to find out how Amazon returns really work and where they end up.