Australians Send Back $20 Billion a Year. What Can Returns Teach Us? 

Australians send back an estimated $20 billion worth of online shopping every year. That number sounds huge, but it also tells a simple story: returns are now a normal part of how people shop online. For shoppers, a good return can turn uncertainty into confidence. For businesses, it is a chance to learn what customers need, improve the experience and make every parcel journey feel easier from start to finish. 

What happens when an item comes back? 

A return is not just an item moving in reverse. It is a small journey with a few important steps: 

1. Checking in: the item is received, identified and matched to the right order. 
2. Condition review: the item is checked so the next step is clear. 
3. Restocking or resolution: some products go back on the shelf, while others need repair, replacement or recycling. 
4. Transport: the parcel moves from the customer back through the network. 
5. Updates: tracking, refunds and notifications keep everyone informed. 

Should returns be seen as a problem? 

Not necessarily. A return often means someone felt confident enough to buy online in the first place. Maybe the size was not quite right, the colour looked different in person, or they simply changed their mind. When the process is clear and convenient, returns can turn uncertainty into confidence and help people get to the right item faster. The opportunity is to make that part of the experience feel simple, reliable and positive. 

How can returns become a better experience? 

Give people options. Some will follow the default return path, but others need a choice that fits around their day. PARCELPOINT gives people the option to drop a return at a nearby local shop, including many locations open outside standard working hours, so they do not have to plan around a depot, post office queue or courier window. The easier the option feels, the more confident people are that returning something, whether for size, colour or change of mind, can be simple and convenient. 

How long does a PARCELPOINT return take? 

Under two minutes. That is about the time it takes to grab milk, pick up a prescription or decide you definitely did not need the second packet of biscuits. Because PARCELPOINT drop-off points are local shops, a return can tag along with an errand you were already doing: hand over the parcel, get confirmation and get on with your day. Much better than letting it enjoy a long retirement in the cupboard. 

Frequently asked questions 

• How big is online returns activity in Australia? 

Australians return an estimated $20 billion worth of online purchases a year, making returns a normal part of the ecommerce experience. 

• What makes a return experience feel good? 

Clear instructions, convenient drop-off options, quick confirmation and updates that explain what happens next. 

• Are returns a bad thing? 

No. Returns can be a useful signal: they show where expectations, product information or logistics can improve, and they can strengthen trust when handled well. 

• How long does a PARCELPOINT return take? 

Usually less than 2 minutes, with no queues at drop-off points. 

Make returns easier: PARCELPOINT gives people over 2,000 places to return a parcel, close to where they live and work. Find your nearest PARCELPOINT or talk to our team about adding PARCELPOINT returns. 

Sources 

1. news.com.au / Yahoo Finance, “Australia’s $20bn online returns problem”, Andrew Hedgman, 11 May 2026: https://www.news.com.au/national/australias-20-billion-online-returns-problem-prompts-doorstep-pickup-solution/news-story/b09e6a0d306ddda3694d2dec09403d6b 
2. Blue Yonder (sponsored content), “Returns management: Turning Australia’s $20b retail problem into an advantage”, Inside Retail Australia, 25 August 2025: https://insideretail.com.au/business/returns-management-turning-australias-20b-retail-problem-into-an-advantage-202508 
3. Loop / Sapio Research, May to June 2026, reported by Ecommerce News: https://ecommercenews.com.au/story/australian-shoppers-quit-brands-over-returns-policies 

EDITOR NOTE: Source traced. The $20 billion is the value of online goods returned, not a cost figure. Blue Yonder derives it as $69 billion online spend (Australia Post eCommerce Report) multiplied by a 30 per cent return rate. The news.com.au piece calls it “activity” and “worth”. The original draft said it “covers labour, restocking, unsellable stock, reverse freight and systems”, which the source does not support, so the wording has been changed. The $22 per return is an “industry benchmark” quoted in the news.com.au story with no named origin.

Related reading 

1. Why Do 7.3 Million Australians Abandon Returns? 
2. Unreturned Items: Australians Are Sitting on $590 in Goods They Meant to Send Back 
3. What Is the Carbon Footprint of an Online Return?