Australian shoppers threaten boycotts over tighter returns

Blue Yonder has published survey findings showing that 84% of Australian shoppers would cut back or stop buying from retailers that restrict returns for frequent returners. The study also found that refund speed was the top returns priority for Australian respondents.

It found that 61% of Australians had chosen one retailer over another in the past year because of a better returns policy, while 40% had stopped shopping with a retailer after it introduced a stricter policy.

When asked how they would react if a retailer said they returned too often and limited their returns, 46% said they would stop shopping there entirely and 38% said they would shop there less often. The figures highlight a clear consumer response as some retailers use technology, including AI, to track returns histories and identify frequent returners.

Opinion on that practice was mixed. A third of Australian respondents, or 33%, said using AI to monitor returns histories and flag or block frequent returners was a fair way to control costs, while 25% said it was invasive and would make them shop elsewhere.

Refunds first

Australian shoppers placed a premium on getting their money back quickly. Some 34% said fast or instant refunds were the most important part of the returns process, ahead of free returns shipping at 31%, making Australia the only country in the survey where refund speed ranked first.

Fees remained a major sticking point. Six in 10 respondents said they would not be willing to pay any fee to return a product, and 42% said paying a returns fee was the single most inconvenient part of making a return. Slow refunds ranked second at 22%.

The findings suggest retailers face a balancing act as they try to manage the cost of returns without discouraging customers. They also indicate that alternative approaches may be more acceptable to shoppers than direct charges.

Nearly half of Australian respondents, or 46%, said a retailer had told them to keep a product they wanted to return rather than send it back. Of that group, 69% said it made them more likely to shop with that retailer again.

Store credit also drew support, with 41% of Australian respondents saying they would accept it for a future purchase in exchange for not making a return.

AI influence

The survey also looked at how AI shopping tools are affecting purchases and returns. It found that 32% of Australian respondents had bought a product after receiving a recommendation from an AI tool or assistant, such as a consumer chatbot.

Of those shoppers, 45% said they had returned an AI-recommended purchase within the past year. Blue Yonder said the Australian findings on AI-related returns were based on a small subgroup and should be treated as indicative.

Younger shoppers were more likely to use AI recommendations. Half of Gen Z respondents and 44% of Millennial respondents said they had purchased a product following a recommendation from an AI tool or assistant, compared with 24% of Gen X respondents and 10% of Baby Boomer respondents.

A similar pattern appeared in attitudes to AI sizing advice. Some 35% of both Gen Z and Millennial respondents said they would trust an AI tool to recommend the right size or fit to avoid a return, compared with 17% of Gen X respondents and 10% of Baby Boomer respondents. Across all age groups, 25% said they would trust such a tool, 41% said it would depend on the retailer, and 34% said they would not trust it.

Blue Yonder surveyed more than 5,000 consumers across the US, Australia, France, Germany and the UK, including 250 in Australia. The research examined shopping habits, return behaviour and consumer reactions to stricter returns rules.

"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, Chief Executive Officer 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," Angove said.

Tighter rules

The findings come as retailers consider stricter returns controls to deal with cost pressures and rising volumes. The Australian results indicate that many consumers are prepared to shift spending if those policies become harder to use.

"The instinct when returns go up is to tighten the rules," Angove said.

"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," Angove said.