The research, conducted independently by Sapio Research between May and June 2026, polled 1,000 Australian consumers who had made an online return in the previous six months alongside 200 retail decision-makers responsible for e-commerce returns strategies. Together, the results expose what Loop describes as a “returns revenue gap”: a widening disconnect between the weight consumers place on the returns experience and the priority retailers assign to it.
Return fees are reshaping purchasing behaviour across the board. Some 91% of respondents said charges on returns alter the way they shop online. Among that group, half reported that fees make them more selective about what they buy, while 37% said they purchase less frequently from retailers that levy charges. More than a quarter (28%) indicated that return costs drive them back to physical stores entirely.
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Before they even reach the checkout, Australian shoppers are scrutinising the small print. The survey found 85% check a retailer’s returns policy at least sometimes before completing an online purchase, with 57% doing so always or often and a third checking every single time.
Yet many retailers appear to be looking in the wrong direction. When asked to name the single greatest financial consequence of returns, just 10% of decision-makers pointed to customer churn. Far larger shares cited lost revenue (29%) or logistics costs (24%). The disconnect is notable given that 68% of those same retailers acknowledged that the returns experience has a significant bearing on customer loyalty.
Loop CEO Hannah Bravo said: “Shoppers are judging brands on what happens after the sale, and that judgment turns into action. Looking at the data, shoppers are saying that a bad returns policy has made them walk away from a brand, whereas many retailers still aren’t recognising or acknowledging this risk.”
The gap, Bravo argued, is also an opportunity. “This gap represents a significant opportunity for the brands that do see returns as a driver of growth, rather than a cost centre,” she said.
One area where Australian retailers are already outpacing overseas counterparts is the pivot from refunds towards exchanges. Some 53% offer instant exchanges, the highest proportion of any market in the study, ahead of 50% in the US and 45% in the UK. Cash refunds account for just 42% of Australian returns, compared with 43% in the US and 53% in the UK.
Bravo highlighted the scale of the commercial prize. “A staggering 86% of Australian shoppers report a willingness to take an exchange under the right circumstances, and the value of that opportunity is eye-popping: over $2bn globally to the brands Loop serves today,” she said.
The research also pointed to untapped revenue potential elsewhere in the returns journey. Around one in five shoppers (21%) said they would pay a small upfront fee in exchange for a more premium returns experience, offering brands a route to offset costs without alienating price-sensitive customers. Separately, 34% said greater confidence in a retailer’s returns process would encourage them to try new brands, while 32% said it would prompt them to buy more frequently.
The findings are published as part of Loop’s report, The Returns Revenue Gap, which examines shifting consumer and retailer attitudes across the post-purchase experience.
