IKEA Reduces Its Renowned 365-Day Refund Policy
IKEA has made a significant change to its renowned returns policy. The Swedish furniture giant has reduced the return window for opened or assembled items from 365 days to just 60 days for customers in Australia and New Zealand. This decision reflects the company’s response to rising logistics costs.
IKEA’s Revised 365-Day Refund Policy
Starting April 9, 2026, customers can only receive store credit for items returned due to a change of mind. Cash refunds to the original payment method are no longer available. An IKEA spokesperson stated that the new policy aims to provide “greater peace of mind and flexibility” to customers.
Key Changes to the Return Policy
- Opened or assembled items must be returned within 60 days.
- Store credit will be issued for change-of-mind returns.
- Unopened and unused items can still be returned within 365 days.
This alteration marks the end of a generous, no-questions-asked return policy that had been a hallmark of IKEA’s branding in Australia. Since its introduction in the mid-2010s, this policy helped build consumer trust in the flat-pack furniture model.
Historical Context of the Returns Policy
The 365-day returns policy gained fame in 2006 when the comedy group The Chaser tested its limits by returning unusual items. Most returns were accepted, showcasing the leniency of the policy.
Industry Trends Affecting Returns
Across the retail sector, many companies that previously offered free returns are reconsidering their policies due to increasing costs associated with “reverse logistics.” The number of retailers providing free returns diminished from 50% in 2018 to just 14% in 2025.
According to data from Shippit, an increase in inflation and the rising cost of fuel are additional factors influencing these changes. The current market dynamics have made it more challenging for retailers like IKEA to sustain generous return policies.
Global Approach to Returns
Although the 365-day return policy became iconic for IKEA, it had not been uniformly applied across the globe. The United States has a reduced return window of 180 days for assembled products, while in Canada, customers have 90 days for full refunds. Consequently, the new 60-day return policy in Australia and New Zealand now ranks among the more stringent practices that the company has implemented worldwide.
Conclusion
IKEA’s decision to trim its renowned 365-day return policy reflects broader shifts in the retail landscape. As costs rise, retailers are adapting their policies to ensure sustainability while still aiming to meet customer expectations.
