Almost half (46%) of Australian shoppers are concerned about sustainable returns, according to research conducted by SAP Emarsys Customer Engagement.

The study suggests that Australians are more loyal to brands that have a sustainable returns process, encouraging retailers to adopt sustainable practices in their return process to ensure customer loyalty.

The research was conducted among over 2,000 shoppers across Australia. For 18% of Australian consumers, sustainability is the most important consideration when shopping. A significant 47% of Australian shoppers are more loyal to a brand that has a sustainable returns process. Furthermore, 46% of respondents agree that retailers should re-sell returned items at a lower price to improve sustainability.

Almost half (49%) of the respondents would like to see retailers accept returns at local depots to improve sustainability. A significant 69% of respondents prefer not to return items, and 56% want retailers to “get it right the first time,” indicating that over half of Australian consumers do not want to deal with returns.

"Sustainability is no longer a nice to have for consumers, it’s now a key consideration when deciding which brand to purchase from and it’s something brands need to prioritise.” said Thomas Harris, Chief Revenue Officer at SAP Emarsys. He further added, “For me, the key is tackling the cause of the problem – why customers are having to return items in the first place. And that’s where AI-powered personalisation comes in.”

Harris emphasised the role of AI in improving customer experiences and reducing the need for returns. “AI-powered personalisation can transform customer experiences with deep customer insights, offering recommendations that are highly tailored to meet the needs of the consumer. It is imperative retailers embrace personalisation using sizing and previous purchase insights data, so shoppers can buy the right item the first time around.”

SAP Emarsys is an omnichannel customer engagement platform that partners with more than 1,500 companies from global enterprises to fast-moving mid-market brands across industries. The research was conducted by Opinion Matters on 2,031 Australians aged 16+ from 11-20th December 2023.