- online shopping scams
- ghost stores
- consumer protection
Australians are being misled by ‘ghost stores’—overseas online shops posing as local businesses. Learn how to spot these scams and protect your money.
Ghost Stores: A Growing Threat to Australian Online Shoppers
Australian consumers are being warned about the surge in 'ghost stores'—online shops that claim to be local, closing-down Australian businesses but are actually based overseas and peddling low-quality, drop-shipped products. These stores trick shoppers with appealing discounts, emotional stories, and professional websites, leaving many out of pocket and with little recourse for refunds.
What Are Ghost Stores?
- Fake Local Branding: These online shops present themselves as local businesses from Aussie cities or suburbs. They claim to be closing down and offering high-quality stock at clearance prices.
- Reality: The stores are almost always overseas drop-shipping operations selling cheap, poor-quality clothes and footwear.
- No Real Connection: Despite convincing branding, they have no local presence, warehouse, or Australian customer support.
Recent Warnings and Reports
The Australian Competition and Consumer Commission (ACCC) has issued public warnings about websites like everly-melbourne.com, willowandgrace-adelaide.com, sophie-claire.com and doublebayboutique.com. Since the start of 2025, the ACCC has received at least 360 reports about 60 different online retailers suspected of being ghost stores. Many complaints centre on:
- Refusal to provide refunds
- Partial refunds or no response to complaints
- Poor quality products that do not match the advertised items
Why Are Ghost Stores So Hard to Fight?
Unlike classic scams where nothing is delivered, ghost stores usually send something—just not what was promised. This makes it harder for banks to reverse charges, and because the businesses are based overseas, Australian consumer law and guarantees often don’t apply. Shoppers cannot simply visit a local store to resolve issues.
How Ghost Stores Target Australians
- Social media ads on platforms like Facebook and Instagram, often featuring dramatic ‘closing down’ sales and local-sounding names
- Websites using popular Australian city or suburb names but ending in ‘.com’ instead of ‘.com.au’
- AI-generated images and generic product shots
- Lack of physical address or only offering an email contact
- Privacy policies or terms referencing overseas regulations, not Australian law
Spotting a Ghost Store: Red Flags
- Website domain ends in “.com” (not “.com.au”) and references an Australian location
- No clear physical address or phone number—only an email for contact
- Policies reference overseas laws or jurisdictions
- Stock images or AI-generated pictures that look too perfect or generic
- Recently launched social pages or websites with few, if any, genuine reviews
- Unrealistic ‘closing down’ sales, huge discounts, or urgency tactics
What To Do If You’ve Been Scammed by a Ghost Store
- Contact your bank as soon as possible—while refunds are tricky, it’s still worth asking for a chargeback or to stop the transaction.
- Report the site to the ACCC via Scamwatch (www.scamwatch.gov.au).
- Share your experience to warn other shoppers and help authorities identify recurring scams.
- If you receive a product, keep all documentation as evidence.
Can Ghost Stores Be Stopped?
There is no easy legal fix, as these businesses operate overseas. However, the ACCC and Consumer Action Law Centre are calling for:
- Social media giants and e-commerce platforms to take down ghost store ads and websites faster
- Better education for consumers about the warning signs
- Stronger international cooperation to limit cross-border retail scams
Shop Smart, Shop Safe
If a deal looks too good to be true—or a ‘local’ shop seems suspicious—do your research before spending your money. Look for Australian contact details, .com.au domains, and real customer reviews. Don’t let ghost stores prey on your good intentions to support Aussie businesses. When in doubt, buy from trusted retailers or those you know are genuinely Australian-owned.
Comments from our readers
Ghost stores question
This is concerning! How can we ensure that genuine Australian businesses aren’t being hurt by these ghost stores? Are there any resources to help identify real local shops versus these scams? I’d love to know what steps we can take as consumers to protect ourselves.
Ghost stores beware
This is such a timely reminder! I've seen those ads pop up everywhere, and it’s so sketchy. Thanks for the heads-up about ghost stores. I’ll definitely be more cautious when shopping online now! Let’s support the real Aussie businesses instead.