More than half of Australian online shoppers have abandoned a brand over a poor returns experience, according to new research from returns platform Loop, yet only 10% of retail decision-makers identify customer churn as the single greatest financial consequence of returns.

Sapio Research conducted the survey independently between May and June 2026, polling 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. Loop published the findings in its report, The Returns Revenue Gap, which examines consumer and retailer attitudes across the post-purchase experience.

What do return fees do to buying behaviour?

The data shows return charges are actively reshaping purchasing decisions. Some 91% of respondents said return fees alter how they shop online. Within that group:

• 50% said fees make them more selective about what they buy
• 37% said they purchase less frequently from retailers that levy charges
• 28% said return costs drive them back to physical stores entirely

Shoppers are also scrutinising policy terms before checkout. The survey found 85% check a retailer's returns policy at least sometimes before completing an online purchase, 57% do so always or often, and a third check every single time.

Why do retailers misread the risk?

Retailers appear to be looking in the wrong direction on the financial impact of returns. When asked to name the single greatest financial consequence, decision-makers most often cited lost revenue (29%) or logistics costs (24%). Just 10% pointed to customer churn — despite 68% of the same respondents acknowledging that the returns experience significantly affects 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."

Bravo framed the disconnect as upside for brands that reposition returns. "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.

How does Australia compare on exchanges?

Australian retailers already outpace overseas counterparts in shifting from refunds to 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 quantified 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.

Where is the untapped revenue?

The survey points to additional monetisation routes within the returns journey. Around 21% of shoppers said they would pay a small upfront fee in exchange for a more premium returns experience, giving brands a way 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.

For sourcing and e-commerce leaders, the message is direct: returns policy now functions as a retention and acquisition lever, not merely a cost line. Loop's report signals that brands treating post-purchase experience as a growth driver — through instant exchanges and confidence-building processes — stand to capture share from competitors still pricing returns as pure logistics overhead.