Australian shoppers quit brands over returns policies

Loop has published research showing that 55% of Australian shoppers have abandoned a fashion purchase or stopped buying from a brand because of its returns policy. The study also found that only 10% of Australian retailers view customer loss as the main financial cost of returns.

The findings are based on a survey of 1,000 Australian consumers who had made an online return in the previous six months and 200 Australian retail decision-makers responsible for eCommerce returns strategy. They point to a gap between how shoppers evaluate return policies and how retailers measure the cost of handling returns.

Return policies appear to influence consumers before a transaction is completed. The survey found that 85% of shoppers check a retailer's returns policy at least sometimes before buying online, including 57% who always or often do so and one in three who check every time.

Fees are also shaping buying behaviour. The study found that 91% of Australian shoppers said return fees influence how they shop online in some way: 50% said fees make them more careful about what they buy, 37% said they shop less often with retailers that charge them, and 28% said fees push them back towards physical stores.

The research suggests retailers may be focused on different pressures. While 29% of retail decision-makers identified lost revenue as the biggest financial impact of returns and 24% pointed to logistics costs, only 10% selected customer churn.

Retail response

Many retailers surveyed also acknowledged the link between returns and loyalty. The report found that 68% of Australian retailers agreed the returns experience significantly affects customer loyalty.

Australian retailers also reported relatively high use of exchanges rather than refunds. The survey found that 53% offer instant exchanges, which Loop described as the highest level among the markets it studied, compared with 50% in the US and 45% in the UK. Cash refunds accounted for 42% of returns in Australia, versus 43% in the US and 53% in the UK.

This points to a broader effort to retain sales that might otherwise be lost when customers send items back. The study found that 86% of Australian shoppers would be willing to accept an exchange under the right circumstances.

Loop said that willingness represented more than USD $2 billion globally for the brands it serves, based on refund values issued by its merchants over the past 12 months. It said the estimate was calculated by applying the share of consumers willing to exchange to actual refund volumes.

The survey also indicated that return policies may affect customer acquisition as well as retention. Some 34% of respondents said they would try new brands if they had greater confidence in a retailer's returns policy, while 32% said they would buy more.

There were also signs that some shoppers might accept paying for a different experience. Around 21% said they would be willing to pay a small upfront fee in exchange for what the research described as a premium returns experience.

Hannah Bravo, Chief Executive Officer of Loop, said the survey showed a disconnect between shopper behaviour and retailer assumptions. "Shoppers are judging brands on what happens after the sale, and that judgment turns into action. Looking at the data, shoppers are saying that a bad returns policy has made them walk away from a brand, whereas many retailers still aren't recognizing or acknowledging this risk. This gap represents a significant opportunity for the brands that do see returns as a driver of growth, rather than a cost center," Bravo said.

The research was carried out online by Sapio Research between May and June 2026. It focused on consumers who had recently completed an online return and retail executives responsible for returns strategy, placing the findings in the context of post-purchase eCommerce operations.

Returns have become a more visible part of competition in online retail as brands try to balance the cost of reverse logistics with customer expectations around convenience, refunds and exchanges. In categories such as fashion, where sizing and fit often drive higher return rates, policy terms can shape whether a shopper completes a purchase at all.

Bravo said the return outcome itself can influence whether a customer comes back. "The ultimate outcome of a return experience is a major driver of customer retention, good or bad. A staggering 86% of Australian shoppers report a willingness to take an exchange under the right circumstances, and the value of that opportunity is eye-popping: over $2 billion globally to the brands Loop serves today," Bravo said.