A nation of cheats? Two in five Aussies admit to indulging in returns fraud

Celene Ignacio

7th Feb 2024

Nearly four in 10 Australians admitted to having either engaged in online return policy abuse or fraudulent behaviours themselves in the past year or know someone who has, according to a recent study.

Returns management software Loop surveyed 1000 Australian online shoppers and discovered that 23 per cent of these respondents admitted to having worn or used an item purchased while planning to return it, doing so at least once a week.

An overwhelming 79 per cent even said they had at least once committed ‘bracketing’ – the act of ordering multiple items to determine size with the intent of returning those that do not fit.

Around 31 per cent disclosed they returned items because they needed the money back they had spent on an item.

Meanwhile, 32 per cent said they returned an item as they only wanted it for a single event.

“Retail merchants are finding their profit margins under deep scrutiny in today’s environment, and returns are receiving dramatic focus,” said Loop CEO Jonathan Poma.

“There is no one-size-fits-all approach to returns, and each brand needs to understand their shoppers’ behaviour to craft a targeted strategy that reduces costly fraud while balancing the need for an exceptional customer experience.”