SYDNEY, Australia – PayPal Australia has today launched Free Return Shipping, a new service that allows customers to refund their shipping costs on eligible online purchases. The announcement comes in response to research from Ipsos and PayPal, which finds that concerns around high return shipping costs are discouraging over half of online shoppers from making repeat purchases.
According to research from Ipsos and PayPal, overall ecommerce spend is forecast to grow by 10 per cent in 2015 to $50 billion, however for over half of Australian shoppers, expensive return shipping costs are considered a disincentive to shopping online. The research, commissioned by PayPal Australia, reveals that shoppers (90%) would be more likely to make purchases online if there was an option for free return shipping. Shoppers also identified the hassle of returning goods (33%) as one of the most common obstacles to shopping online.
PayPal Refunded Returns (Free Return Shipping) is intended to assist retailers in addressing consumer concerns around online shopping. From today, customers who have opted into the free service and who are looking to return an item will be able to request a shipping refund on the PayPal website within 14 days and once approved, be reimbursed costs up to $45 on eligible purchases.
“Our consumer insights reveal that there is a real opportunity for retailers to experience a growth in sales if they address concerns around shipping, and offering services like free returns is just one of the ways in which they can meet evolving consumer expectations,” Emma Hunt, Director of Small Business, PayPal Australia said.
“With competition heating up both locally and internationally, for our 110,000 merchants, Free Return Shipping is a simple and strong value proposition for their consumers that stands to set them apart,” Hunt continued.
“An investment in an innovative shipping service not only overcomes a massive consumer pain point but can be a lucrative revenue driver for the merchants PayPal partners with”.
Free Return Shipping is available nationwide from today. For more information and to register, visit: www.paypal.com.au/returns.
*About PayPal Free Return Shipping
Up to 4 refunds per PayPal account until 31st July 2015 on eligible purchases. A cap of $45 per refund request applies. The Refunded Returns Service is offered by PayPal Pt. Ltd, in partnership with TELUS International Europe, the service provider. See the General Conditions of Use for further information.
At PayPal, we put people at the center of everything we do. Founded in 1998, we continue to be at the forefront of the digital payments revolution, processing almost 10 million payments for our customers per day. PayPal gives people better ways to connect to their money and to each other, helping them send money without sharing financial information and with the flexibility to pay using their PayPal account balances, bank accounts, PayPal Credit and credit cards. With our 157 million active digital wallets, we have created an open and secure payments ecosystem people and businesses choose to securely transact with each other online, in stores and on mobile devices. PayPal is a truly global payments platform that is available to people in 203 markets, allowing customers to get paid in more than 100 currencies, withdraw funds to their bank accounts in 57 currencies and hold balances in their PayPal accounts in 26 currencies. In September 2014, eBay Inc. announced the planned separation of eBay and PayPal into independent publicly traded companies in 2015. More information about PayPal can be found at www.paypal.com and www.paypal-media.com. More information about the planned separation of eBay and PayPal can be found at update.ebayinc.com.
About PayPal Australia
PayPal has been operating in Australia since 2005 and now has over 5.5 million active customer accounts. As the preferred payment partner for more than 110,000 Australian merchants PayPal is an option for Australian businesses to transact online and offline, from sole proprietors and developers to established large merchants.
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The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which holds an Australian Financial Services Licence number 304962. Any information provided is general advice only and does not take into account your objectives, financial situation or needs. Please consider the Combined Financial Services Guide and Product Disclosure Statement available at www.paypal.com.au before acquiring or using the service.