The supply pops up in your social media feed. The web site is skilled and the imagery illustrates an Australian coastal area, or stylish inner-CBD scene.
The model title signifies this unique style retailer is predicated in Melbourne, Sydney, Adelaide, or an unique enclave corresponding to Double Bay or Byron Bay.
The companies have historical past, having apparently been “established” 30–40 years in the past, and a narrative. The homeowners have reluctantly determined to shut or relocate, leading to vital reductions.
Nevertheless, behind the phantasm of status and luxurious, is affordable, poorly manufactured clothes from Chinese language factories.
The latest development of those on-line “ghost stores” has led the Australian Client and Competitors Fee to challenge public warning notices about 4 web sites.
Everly-melbourne.com, willowandgrace-adelaide.com, sophie-claire.com and doublebayboutique.com are the 4 named.
A brand new kind of rip-off
The ACCC’s Focusing on Scams report estimated Australians misplaced A$2.74 billion in 2023. Most losses have been from funding scams ($1.3 billion), distant entry scams ($256 million), and romance scams ($201.1 million).
Nevertheless, on-line ghost retailer scams are so new, researchers and authorities companies haven’t but had time to measure the monetary affect these companies are having on shoppers or reliable style companies.
It’s doable a client, as soon as stung by a ghost retailer rip-off, will likely be much less more likely to store with a reliable on-line style retailer.
Such a rising rip-off was touched on in a 2015 report referred to as Framework for a Taxonomy of Fraud. The report famous there have been companies promoting “worthless or non-existent products”. Their websites made:
deceptive claims about merchandise which are exaggerated, undervalued, or non-existent.
For the reason that starting of 2025, the ACCC studies it has acquired at the least 360 complaints about 60 on-line ghost retailers. It says many extra could also be working throughout a number of social media websites.
Difficult techniques
Ghost shops use quite a lot of techniques to draw unsuspecting clients.
Worth: Prospects often assume increased costs imply increased high quality. Most clients seeing a “leather” jacket for $19.74 on Temu would anticipate low high quality. Nevertheless, a silk maxi-dress from Everly Melbourne diminished from $209.95 to $82.95 – a 60% saving – appears affordable and reflective of regular mid-season clearance pricing. That truth it’s nonetheless priced at greater than $80 additionally implies good high quality.
Cosmopolitan localism: Researchers have reported that so-called cosmopolitan localism fosters significant client relationships with manufacturers. Shoppers usually tend to belief a enterprise primarily based in Melbourne or Byron Bay over one primarily based internationally.
Including pictures of a bodily retailer entrance creates credibility and “realness”. Prospects really feel assured to purchase from a bit enterprise primarily based in Melbourne, Sydney or someplace well-known to them.
Harry Retailer Entrance.
Storytelling: Storytelling can affect consumers’ feelings and have an effect on buying. It helps stimulate deeper emotional connections to a model. Ghost shops will often create a story round “going out of business” to justify worth reductions and pull on heart-strings.
Format: A professionally developed web site, with high-quality pictures, detailed product data, on-line fee strategies and order monitoring, creates the phantasm of authenticity. Researchers have discovered luxurious model web site designs can create a powerful sense of luxurious. This will increase a willingness to purchase.
Easy methods to spot a “ghost”
When the publish signifies “closing today” or “closing down sale ends tonight”, it is vitally straightforward to impulsively leap in to benefit from the financial savings. Nevertheless, earlier than you click on, examine for these purple flags:
The web site area is “.com” moderately than “.com.au”. This means the shop just isn’t an Australian-based enterprise.
Is the enterprise registered? ABN Lookup is the free public view of the Australian Enterprise Register – a fast search will determine that the Double Bay designer isn’t registered regionally.
Evaluate platforms, together with Trustpilot, usually have damaging critiques for the enterprise, whereas the enterprise’ web site solely options very optimistic critiques.
The photographs of merchandise and even the proprietor could also be AI generated. For instance, Harry – Melbourne, is seemingly an artisan watchmaker. Nevertheless, merely right-clicking on the picture reveals Harry is an AI-generated picture.
Chat GPT Generated Harry – Melbourne.
A cautionary word
On-line purchasing is dangerous. You may’t bodily contact or work together with the product to find out its high quality. Three forms of dangers are widespread when purchasing on-line. These are efficiency threat (it doesn’t work, doesn’t match properly, or the standard is poor), monetary threat (shedding your cash on a poor-quality product), and time-loss threat (refund processing takes weeks).
As such, clients should belief the net retailer to behave truthfully and describe merchandise precisely. When belief is breached, shoppers will naturally change into cautious even about reliable on-line retailers.
As ghost shops scams more and more populate social media feeds, unsuspecting shoppers will proceed to get caught out. This can depart reliable retailers uncovered to scepticism and distrust.
