# Ecommerce Returns Management for Australian Retailers

URL: https://ecomchannels.com/insights/ecommerce-returns-management-australia/
Category: Shipping & delivery
Updated: 2026-10-30

> How Australian online retailers can manage returns: consumer law basics, what shoppers expect, the main causes of returns and how to cut cost and handling.

Good returns management means meeting your obligations under Australian Consumer Law, making returns simple for customers, and processing them quickly and cheaply behind the scenes. Shoppers reward easy returns with repeat business, but each return carries shipping, handling and refund costs, so the best results come from preventing avoidable returns and automating the rest.

*This article is general information, not legal advice.*

## Start with the law

In Australia, consumer guarantees under the Australian Consumer Law set the floor for returns. The [ACCC](https://accc.gov.au/business/small-business/small-business-toolkit/resolving-issues-with-customers/repairs-refunds-and-replacements) explains that customers are entitled to a repair, replacement or refund when a product fails a consumer guarantee, for example because it is faulty or not as described. You do not have to give a remedy if the customer simply changed their mind, but if your business has a change-of-mind policy you must honour it. Signs or terms saying "no refunds", or "no refunds on sale items", are illegal.

The ACCC is watching online retailers closely. In February 2025 it reported a [sweep of more than two thousand Australian retail websites](https://accc.gov.au/media-release/accc-sweep-uncovers-concerning-online-shopping-return-policies-and-terms-and-conditions) that found potentially misleading terms, including time limits for returning faulty products, blanket "no refund" conditions, statements that delivery fees for faulty items were non-refundable, and restocking fees on faulty returns. Review your returns page and marketplace policies against this list.

## What shoppers expect

Returns are part of the buying decision. Australia Post's [2025 eCommerce Report](https://auspost.com.au/content/dam/ecommerce-report/australia-post-ecommerce-report-2025.pdf) found 65% of online shoppers say friction-free returns contribute to a good online shopping experience, rising to 72% of Gen Z and Millennials. After free and fast delivery, free returns rank as the most important part of the delivery experience.

Australia Post's [quarterly update](https://auspost.com.au/business/grow-your-business/trends-insights) found 75% of shoppers say an easy returns process makes them more likely to buy again. The 2025 report also shows a mismatch in how refunds are handled: nine in ten shoppers prefer a refund, but only 42% of businesses offer one; just 10% of shoppers prefer store credit, yet 33% of businesses use it.

Overseas data shows the scale. The US [National Retail Federation](https://nrf.com/research/2025-retail-returns-landscape) estimated 19.3% of US online sales would be returned in 2025 and 82% of consumers say free returns are an important consideration. It also estimated 9% of all returns are fraudulent. Australian rates differ, but the pressures are similar.

## Why products come back

Knowing the cause is the first step to reducing returns. In the [Grant Thornton and Power Retail](https://www.grantthornton.com.au/globalassets/1.-member-firms/australian-website/industry/retail/pdfs/gtal_2025_grant_thornton_power_retail_report.pdf) 2025 survey of Australian consumers:

- "Wrong size or fit" was the main reason for online returns, at 43%.
- A further 26% returned items because they were damaged, defective or incorrect.
- Fashion accounted for 53% of online returns, followed by electronics at 16%.

Many of these are preventable. Better size guides, accurate product attributes and clear images reduce fit and expectation problems. Better packing and order checks reduce damaged and wrong-item returns, which are also the ones you pay for in full under consumer law.

## Designing a returns process that scales

1. **Publish a clear, compliant policy.** State change-of-mind terms (if any) separately from faulty-item rights.
2. **Offer convenient drop-off.** Post Offices, lockers and courier collection points make returns easier. Australia Post reports [returns via Parcel Lockers are up 36%](https://auspost.com.au/business/grow-your-business/business-ideas-blog/parcel-lockers-locker-land-merchant-host-insights) year on year.
3. **Generate return labels digitally.** A self-service returns page that issues a label linked to the original order saves emails and rekeying.
4. **Put order details on the return label.** Order number and item count let the warehouse process the parcel without detective work.
5. **Grade and restock quickly.** Fast inspection gets saleable stock back online and reduces refund delays.
6. **Reconcile refunds.** Marketplaces deduct refunds and fees from settlements, so match each refund to its return to catch errors.

## Watch return shipping costs

Return freight is a growing cost. Australia Post's 2025 report cites Refundid's observation that some businesses are charging up to 30% more for return shipping than the previous year. Decide which returns you will fund (all faulty items, and possibly first exchanges) and which the customer pays for, then make that clear. Our article on [shipping cost reduction](https://ecomchannels.com/insights/reduce-shipping-costs-automation-ecommerce/) covers carrier selection, which applies to returns too.

## Key figures

- 75% of shoppers say an easy returns process makes them more likely to buy again ([Australia Post, 2026](https://auspost.com.au/business/grow-your-business/trends-insights)).
- 65% of online shoppers say friction-free returns contribute to a good experience ([Australia Post, 2025](https://auspost.com.au/content/dam/ecommerce-report/australia-post-ecommerce-report-2025.pdf)).
- 43% of Australian online returns are due to wrong size or fit, and 26% to damaged, defective or incorrect items ([Grant Thornton and Power Retail, 2025](https://www.grantthornton.com.au/globalassets/1.-member-firms/australian-website/industry/retail/pdfs/gtal_2025_grant_thornton_power_retail_report.pdf)).
- The ACCC's sweep of more than 2,000 retail websites found return terms that may mislead consumers ([ACCC, 2025](https://accc.gov.au/media-release/accc-sweep-uncovers-concerning-online-shopping-return-policies-and-terms-and-conditions)).
- Returns via Australia Post Parcel Lockers rose 36% year on year ([Australia Post, 2026](https://auspost.com.au/business/grow-your-business/business-ideas-blog/parcel-lockers-locker-land-merchant-host-insights)).

## How eComChannels helps

Returns touch shipping, stock and finance, and handling them across several marketplaces by hand is slow. [Order management](https://ecomchannels.com/products/order-management/) keeps every channel's orders and returns in one place and puts returned stock back into sellable inventory across all channels once it is checked. [AI auto shipping](https://ecomchannels.com/products/ai-shipping/) creates labels and manifests for replacement and exchange orders with your carriers, and supports claims when an outbound parcel was lost or arrived damaged. [Finance auto reconciliation](https://ecomchannels.com/products/finance-reconciliation/) matches marketplace refunds and deductions to the right orders, so you can spot short payments or refunds that were never returned. Less manual handling per return, and faster restocking.

To review your returns flow with us, [book a demo or start a 30-day free trial](https://ecomchannels.com/book-a-demo/).

## FAQ

### Do I have to accept change-of-mind returns in Australia?

No. Under the Australian Consumer Law you do not have to provide a remedy for change of mind, but if you advertise a change-of-mind policy you must honour it. Faulty or not-as-described items must be remedied.

### Can I charge a restocking fee?

Not on faulty items. The ACCC has flagged restocking fees on faulty returns as potentially misleading. Any fee on change-of-mind returns should be clearly disclosed in your policy.

### What is the most common reason for online returns?

In Australia, wrong size or fit, cited by 43% of consumers in a 2025 Grant Thornton and Power Retail survey, followed by damaged, defective or incorrect items.

## Sources
- Providing repairs, refunds and replacements, ACCC (2026): https://accc.gov.au/business/small-business/small-business-toolkit/resolving-issues-with-customers/repairs-refunds-and-replacements
- ACCC sweep uncovers concerning online shopping return policies and terms and conditions, ACCC (2025): https://accc.gov.au/media-release/accc-sweep-uncovers-concerning-online-shopping-return-policies-and-terms-and-conditions
- Australia Post eCommerce Report 2025, Australia Post (2025): https://auspost.com.au/content/dam/ecommerce-report/australia-post-ecommerce-report-2025.pdf
- Trends and insights: Quarterly eCommerce Update, Australia Post (2026): https://auspost.com.au/business/grow-your-business/trends-insights
- Value, Speed, and Reliability: What's Driving Australian Retail, Grant Thornton Australia and Power Retail (2025): https://www.grantthornton.com.au/globalassets/1.-member-firms/australian-website/industry/retail/pdfs/gtal_2025_grant_thornton_power_retail_report.pdf
- 2025 Retail Returns Landscape, National Retail Federation and Happy Returns (2025): https://nrf.com/research/2025-retail-returns-landscape
- Parcel Lockers in Australia: What merchants and hosts learned at Locker Land, Australia Post (2026): https://auspost.com.au/business/grow-your-business/business-ideas-blog/parcel-lockers-locker-land-merchant-host-insights