As households tighten their wallets amid soaring living costs, new data highlights the urgent need for retailers to adapt to a shifting consumer landscape. The latest ABS data shows non-essential spending has dipped by 1.9%, while essential spending has surged by 1.8% year-on-year.
Loop’s 2024 State of Returns report uncovers key trends in consumer behaviour, such as fashion products dominating almost two-thirds (62%) of all returns, followed by electronics (14%) and house/garden products (9%).
Returns due to a change of mind have doubled from 6% in 2021 to 12% in 2024, indicating consumers’ increasing post-purchase discernment.
70% of Australian shoppers prioritise free return shipping, while 44% value a quick and easy returns process, and 41% seek fast refunds or immediate exchanges. While not top priorities, 33% of shoppers appreciate low-carbon emission shipping, and 25% favour sustainable packaging for returns.
Three-quarters (75%) of respondents say they are unlikely or highly unlikely to purchase from a retailer again after having a negative returns experience.
Retailers offering omnichannel experiences see a 30% higher customer lifetime value (CLV) and a 70% greater purchase frequency compared to in-store-only shoppers.The ability to see and experience products in-store drives 63% of shoppers to prefer omnichannel retailers over pure play online retailers.