Fast refunds top Australian shoppers' returns priorities, while 60% would refuse to pay a returns fee
Australian key points:
- 84% of Australian respondents would shop less often or stop shopping entirely at a retailer that limits their ability to return due to high return frequency.
- 61% chose one retailer over another in the past year purely because it offered a better returns policy, and 40% stopped shopping at a retailer after it introduced a stricter returns policy.
- 60% would not pay any fee to return a product, while 42% said paying a returns fee was the single most inconvenient part of making a return.
- 32% have purchased a product after receiving a recommendation from an AI tool or assistant.
- 34% said fast or instant refunds were the most important aspect of the returns process, ahead of free returns shipping at 31%. Australia was the only surveyed country where refund speed ranked first.
Blue Yonder, the AI company for supply chain, today released its 2026 Consumer Retail Returns Survey. It found that 84% of Australian shoppers would shop less often or stop shopping entirely at a retailer that limits their ability to return items because they return too frequently. Now in its fourth year in the U.S., the survey polled more than 5,000 consumers across the U.S., Australia, France, Germany and the U.K. It asked how they shop, what they send back and how they respond when retailers tighten the rules. The Australian findings highlight the importance of fast refunds and flexible returns policies, with 61% of respondents choosing one retailer over another in the past year purely because it offered a better returns policy.
AI Recommendations Influence Shopping and Returns
Nearly a third (32%) of Australian respondents said they have purchased a product after receiving a recommendation from an AI tool or assistant, such as a consumer chatbot. Of those, 45% have returned an AI-recommended purchase within the past year. One-quarter (25%) of Australian respondents would trust an AI tool to recommend the right size or fit to avoid a return, while 41% would potentially trust it depending on the retailer and 34% would not. The Australian findings on AI-related returns are based on a small subgroup and should be treated as indicative.
Younger Australians are leading the uptake of AI-assisted shopping, with 50% of Gen Z respondents and 44% of Millennials having purchased a product following a recommendation from an AI tool or assistant, compared with 24% of Gen X and 10% of Baby Boomers. Trust in AI sizing recommendations follows a similar pattern: 35% of both Gen Z and Millennials would trust an AI tool to recommend the right size or fit to avoid a return, compared with 17% of Gen X and 10% of Baby Boomers.
"Shoppers are taking AI's advice faster than retailers are getting ready for it, and nearly half of them are sending something back," said Duncan Angove, CEO of Blue Yonder. "That's not really an AI problem. It's a data problem. An AI assistant is only as good as the product information it can find, and most product data was written for a search bar, not for a machine suggesting products for someone. When what arrives doesn't match what the shopper expected, it goes back in the box."
Australian Shoppers Respond to Stricter Returns Policies
More than six in 10 Australian respondents (61%) said that they have decided to buy from one retailer over another purely because it had a better returns policy. Two in five (40%) have gone further and stopped shopping altogether at a retailer that implemented a stricter return policy in the last year.
If a retailer told them they return too often and limited their returns, 46% of Australian respondents would stop shopping there entirely, while 38% would shop there less often - a combined 84%.
Retailers are adopting new tracking technologies, such as using AI to monitor return histories and flag frequent returners. When asked about using AI to monitor returns histories and flag or block frequent returners, 33% of Australian respondents called it a fair way to control costs. However, 25% said it is invasive and would make them shop elsewhere.
"The instinct when returns go up is to tighten the rules," said Angove. "But the data tells you how that ends. Flag shoppers as frequent returners and limit their returns, and eight in 10 say they'd cut back or walk away. And some of your most frequent returners are your best customers. The challenge is telling the difference between a shopper who abuses returns and a loyal customer who simply returns a lot. That takes systems that can set the right policy for each customer and handle every return as quickly and cheaply as possible. Done right, returns stop being just a cost and start earning loyalty."
Consumers Want Free and Easy Returns, but Accept Incentives
Free and fast returns still matter most to Australian shoppers, but many will take an alternative. For 34%, fast or instant refunds are the most important factor when returning an item. Free returns shipping (31%) is a close second. Australia was the only surveyed country where refund speed ranked first.
If presented with a fee to return a product, 60% of Australian respondents said they would not be willing to pay. Paying a returns fee was also the single most inconvenient part of making a return for 42%, ahead of slow refunds at 22%.
Instead, consumers are accepting "keep it" returns and alternative incentives in exchange for not making a return. Nearly half (46%) of Australian respondents have been told by a retailer to keep a product they wanted to return rather than go through the returns process, with 69% of those saying it made them more likely to shop with that retailer again. For retailers, a keep-it refund often makes economic sense when the cost of shipping and processing a return exceeds what the item could be resold for, provided they can spot the shoppers who would take advantage of it. The goodwill is a bonus.
Australian respondents would also accept store credit for a future purchase (41%) in exchange for not making a return. Store credit also keeps the revenue with the retailer, which makes it one of the few concessions that works for both sides.
Additional Resources:
