🇦🇺Australia

Cost of Poor Quality Refunds

1 verified sources

Definition

Major failures (unsafe, unfit for purpose) trigger full refunds plus compensation for foreseeable loss.

Key Findings

  • Financial Impact: 100% product value + compensation per major defect (industry avg 2-5% return rate)
  • Frequency: Per defective unit sold
  • Root Cause: Inadequate incoming inspection, supplier quality failures

Why This Matters

The Pitch: Wholesale suppliers forfeit 5-15% inventory value annually on defective returns. Automated quality checks prevent AUD 10k+ monthly losses.

Affected Stakeholders

Purchasing, Quality control, Finance

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Restocking Fees on Returns

AUD 20-25% restocking fee per return (e.g., AUD 200 on AUD 1,000 item)

Non-Refundable Return Shipping Costs

AUD 50-200+ return shipping per item deducted from refund

Manual Returns Processing Labor

AUD 100-400 labor per return (2-4 hours at AUD 50-100/hr)

Erlösverluste durch fehlerhafte oder verspätete Rechnungsstellung

Quantified (logic-based): 1–3% of annual revenue lost to errors, concessions and write‑offs (e.g., AUD 200k–600k per AUD 20m revenue) plus 5–10 hours/month in rework time by AR staff.

Strafzuschläge und Zinsen wegen fehlerhafter GST/BAS‑Erfassung von Forderungen

Quantified (logic-based): 0.1–0.5% of annual revenue as cumulative GST adjustments, penalties and interest over time (e.g., AUD 20k–100k on AUD 20m revenue) plus 20–40 staff hours per ATO review or audit.

Produktivitätsverlust durch manuelle Debitorenbuchhaltung

Quantified (logic-based): 0.5–1.0 FTE of avoidable administrative effort (approx. AUD 35k–90k/year) plus 40–80 staff hours/month on manual AR tasks.

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