Retail Report

The True Cost of Easy Returns in Australian E-Commerce

Discover how Australian retailers can reduce return rates, cut costs, and improve sustainability—without sacrificing customer experience.

Returns Are Costly—Financially and Environmentally

Returns can erode up to 58% of your order value. Every 1% increase in return rate can cost A$730k per million orders. And with over 300,000 tonnes of clothing discarded annually, the environmental toll is just as steep.

What’s Inside the Guide:

How Australian return policies compare to the US and Europe
The true financial and environmental cost of returns
Practical strategies to reduce returns and boost loyalty
Legal compliance tips for Australian retailers
Case studies from leading fashion brands

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Why This Guide Matters

Australian consumers love free and flexible returns—but it’s costing retailers millions. Learn how retailers can manage high return rates while staying profitable and sustainable.

Free Shipping

83% of Australians are more likely to purchase online if free shipping is offered. Free shipping is a major driver of conversion and loyalty in e-commerce and has become a baseline expectation for many fashion e-commerce businesses in Australia.

Free Returns

59% of Australians are more likely to buy from brands offering free return shipping. In Australia, free returns for change of mind are a commercial choice, not a legal requirement, unlike in Europe.

Return Rate

Industry roundups suggest a 20%-30% overall return rate in Australia, with fashion dominating returns. Ease of returns policies drives higher rates for many Australian retailers.

About the Author

Meet our retail advisor, Damien Hodgkinson.

Damien Hodgkinson

Principal

Damien Hodgkinson leads Olvera Advisors Retail Advisory Practice with over 30 years of experience in retail advisory, working in both fashion and consumer goods.

He currently chairs Best Markets a privately held company that invests in e-commerce retailers, having relaunched Mon Purse the monogrammed handbags company in 2021 and is currently working on the re-launch of the on-line retailer Surfstitch.