Australian e-commerce retailers experienced a 28% increase in return volumes during January 2025 compared to the previous year, creating operational challenges for fulfilment centres nationwide.

Key Statistics

Industry data reveals the scope of the returns challenge:

$2.1 billion in returned merchandise value
Average processing time: 8.3 days from receipt to refund
Fashion returns rate: 32% (up from 26% in 2024)
Electronics returns rate: 18% (up from 14% in 2024)

Primary Return Reasons

Survey data from major retailers identified top return drivers:

Sizing issues (42%) - particularly in apparel
Product not as described (24%) - photos vs reality gaps
Changed mind (18%) - impulse purchase regret
Damaged in transit (11%) - packaging failures
Other (5%) - various reasons

Operational Impact

Fulfilment centres report:

Extended processing backlogs through mid-February
Increased temporary staffing requirements
Storage capacity strain from return inventory
Quality control bottlenecks for resellable assessment

Retailer Responses

Several major retailers have announced policy changes including shorter return windows and restocking fees for serial returners, while others are investing in virtual try-on technology to reduce fit-related returns.