One in three online shoppers aren’t happy with the retail return process, according to a recent NTI survey.

The national consumer research conducted late last year, commissioned by Australia’s largest transport and logistics insurance specialist, NTI, found 30% of online shoppers were dissatisfied with returns or refunds initiated when a package was lost or damaged.

NTI’s National Development Manager – Distribution, and Parcel Protect spokesperson, Bert Webster, said the start of the year is traditionally a busy time for retailers as shoppers return unwanted Christmas gifts or sales purchases.

“Returns, refunds or replacements are also underway for packages which were damaged or lost during delivery. Our national consumer survey found around       69% of Australians have experienced this in the past with that number jumping to 79% of shoppers in the Millennial age group,” he said.

“When this happens, it’s often up to the customer to chase a resolution. Our survey found resolution time is a key area of frustration – for more than 39% of respondents, it took longer than a fortnight to resolve the issue, and more than 1 in 10 were still waiting for an outcome.”

There is also uncertainty around who to turn to when a package was lost or damaged. 

“Overwhelmingly, 61% of shoppers contacted the retailer to fix the problem but almost a quarter of shoppers who reached out to either the courier or the retailer were redirected and told to contact the other party,” he said.

The research also shows the impact the returns and refunds process can have on the likelihood a buyer will return to an online store.

“There’s great opportunity for word-of-mouth recommendations for retailers who handle lost or damaged parcels well,” he said.

“The research found 1 in 10 shoppers said they would recommend a retailer because of a positive returns and refunds experience. In the Gen Z age bracket, that jumps to 25% which from a business perspective, may represent a significant portion of your market or your potential market.”

The survey found more than 78% of Australians would be more likely to buy from a retailer that includes shipping insurance to protect damaged, lost or stolen goods.