🇦🇺Australia

Non-Refundable Return Shipping Costs

2 verified sources

Definition

Return shipping costs are borne by customer and deducted from final refund value, creating direct cost leakage for non-recoverable freight.

Key Findings

  • Financial Impact: AUD 50-200+ return shipping per item deducted from refund
  • Frequency: Per customer-initiated return
  • Root Cause: Freight collection arrangements without prepaid labels or carrier negotiations

Why This Matters

The Pitch: Wholesale hardware firms in Australia lose AUD 50-200 per return on shipping deductions. Automation of freight coordination eliminates this leakage.

Affected Stakeholders

Logistics team, Finance, Returns processing

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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)

Manual Returns Processing Labor

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

Cost of Poor Quality Refunds

100% product value + compensation per major defect (industry avg 2-5% return rate)

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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