Tighter returns policies compromise sales, research finds

My Nguyen

12th Sep 2025

Online retailers are facing a higher risk of cart abandonment as they implement stricter return policies, according to a survey by Blue Yonder.

The study highlights that approximately 63 per cent of Gen Z consumers in Australia and New Zealand (ANZ) are likely to abandon a purchase if they perceive the return process to be inconvenient or unfair.

About 84 per cent of all shoppers said they would adjust their buying habits based on a retailer’s return policies.

Notably, one-third of global consumers reported that some policies are restrictive enough to prevent them from making a purchase altogether.

“Across generations and regions, consumers are consistent in believing that returns restrictions are unfair and inconvenient to them, underscoring their expectation for an easy and hassle-free process,” said Tim Robinson, VP and GM of Blue Yonder.

The study identified the return fee charged as the most inconvenient part of the process, with 31 per cent of ANZ consumers preferring to keep an unwanted item rather than pay for its return.

Furthermore, return rejections are also a growing issue, with 24 per cent of consumers in the ANZ region reporting they had a return request denied last year.

For certain categories, retailers are opting for customers to keep the item. The clothing and accessories sector is the top category for this practice, occupying 38 per cent, followed by electronics and groceries.

Robinson advises that it is important for retailers to develop customer-friendly return processes and manage returns more efficiently, including the associated costs and waste.

“These results demonstrate that consumers value the ability to easily return items and, when possible, prioritise retailers that offer convenience and sustainable returns options.”

Approximately two-thirds of shoppers refer to practising more sustainable return habits, a figure that has increased by 10 per cent compared to the previous year.