E-commerce

Australia’s best retailers at returns: Bed Threads, The Iconic, Oroton

Bed Threads, The Iconic, and Oroton ranked ahead of other retailers in November for overall returns experience in the Online CX Index, Australia’s first and only online retailer performance platform powered by real data.

The Online CX Index, a partnership between Inside Retail and Humii, covered the returns experience for November, from customer re-packaging and returning a product to receiving their refund.

The analysis included assessing return and refund options, terms and conditions, the usability of returns portals, packaging and labels, and the overall speed and clarity of the process.

“While returns are a common part of retail, many experiences still feel unnecessarily complicated, leaving customers guessing how to navigate the process or when to expect their refund,” said Mareile Osthus, Humii’s co-founder and CEO.

“A seamless return experience can turn a frustrating situation into an opportunity to build trust and loyalty.”

Bed Threads: Sets the standard for returns

Bed Threads has an average refund time of 1.2 days and outperforms the homewares cluster average by 3.3 days.

Moreover, their portal is one of the simplest to use, requiring only an order number and email or postcode to start the refund request process. In addition, their deliveries come with reusable packaging, including a sealing strip for effortless repacking.

“It begins with their clear and easy-to-understand returns policy, ensuring customers know exactly what to expect,” said Osthus.

“Their approach sets the standard for returns and highlights their commitment to a seamless customer experience.”

The Iconic: Free returns form part of the success story

The Iconic, meanwhile, has an average refund time of 7.1 days, on par with other department stores. However, its free return and a seamless process to request one make it stand out for customers.

“Free returns are undoubtedly one of the biggest drawcards, a feature loved by millions and part of their success story,” said Osthus.

“One minor downside is that The Iconic’s chatbot struggles to answer whether return labels can be printed at the post office, and the returns policy doesn’t clarify this either.”

Like Bed Threads, The Iconic’s packaging also has a sealing strip for convenient repacking.

Oroton: Rated excellent for returns in premium segment

Among the appreciated aspects of Oroton’s return process is the inclusion of a prepaid shipping label, similar to The Iconic.

Moreover, customers receive timely updates and notifications until their parcel reaches the warehouse.

Another feature the customers appreciate is that Oroton processes the refund hours after sending the notification.

However, its average refund time takes six days, which is slightly slower than the average 4.9 days but is still competitive.

“One potential improvement area is the relatively short return window of 14 days, below the industry average,” said Osthus.

“Overall, Oroton’s returns process delivers a standout experience, with just a few tweaks needed to make it even better.”

Seamless returns experience helps build customer satisfaction

According to Osthus, a seamless returns experience builds trust and impacts loyalty and long-term customer satisfaction.

She noted that while most retailers advertise five business days for a refund on their website, the reality looks different.

Across all industries in Australia, the average refund time is 9.4 days, with the homeware sector leading at four days and the beauty industry trailing at an average of 13 days.

To create a seamless returns experience, Osthus advised retailers to have a clear and transparent policy, a returns portal with the option to print labels directly at the post office, and multiple return options.

She also recommends the returns process to have minimal customer service interaction, clear communication, fast refunds, and reusable packaging.

“What customers really want is straightforward: a clear and easy-to-understand returns policy, minimal interaction with customer service, a hassle-free process that doesn’t require extra effort like printing labels or complex packaging, and, most importantly, no chasing down refunds,” said Osthus.

Back to the beginning

Robert Stockdill, global head of news with Inside Retail, says every online retailer needs to prioritise the returns experience as much as the shopping experience itself. 

“Any retailer that fails to provide a transparent, streamlined returns process does so at their peril. A poor returns experience is often the last touchpoint a customer will remember about a brand – before they switch allegiance to another brand.

“Equally important to remember is that old maxim that more people will share a bad experience than a good one. When a shopper encounters a bad online or omnichannel encounter, they are highly likely to tell their friends, families and colleagues about it, so make sure you are as focused on retaining customers as you are at attracting them.”

Stockdill said the CX Index results demonstrate that timely refunds, transparent policies, convenient packaging and flexible returns options – in-store, reverse delivery or convenient drop-off points – give shoppers confidence when buying goods online.