Coles Increases Paper Bag Fee for Online Orders
Coles, one of Australia’s leading supermarket chains, has quietly raised the price of its paper bags for online orders. The flat “paper bag fee” has gone up from $1.50 to $2, marking a 50c increase. This new charge came into effect on May 11 and has been met with frustration from Australian shoppers who are already struggling with the ongoing cost of living crisis.
The announcement was made in the final stages of the checkout process on Coles’ website, leaving many customers surprised. A notice on the site read: “We’ve increased our paper bag fee to $2 for online orders scheduled from Monday 11th May.” This lack of prior communication has sparked criticism, with some customers feeling that they were not given enough time to adjust to the change.
A Coles spokesperson provided a statement to nine.com.au, saying: “We regularly review our online shopping offer to ensure it continues to provide customers with a convenient and reliable service. As part of a recent review, we have updated the bagging fee for online orders from $1.50 to $2.00 per order, which is displayed at checkout before customers place their order.”
The $2 paper bag fee applies regardless of how many bags are needed for each order. This policy aligns with Woolworths, where customers also pay $2 for similar services.
Rise in Online Orders
Coles has seen a significant increase in online orders, as highlighted in their latest financial results. The company reported a 27% rise in online sales, with e-commerce now accounting for 13.1% of the supermarket’s value. These online orders include Click & Collect and home delivery options, and Coles groceries are also available through Uber Eats.
Despite this growth, Coles has faced challenges in 2026. The supermarket giant was found to have misled shoppers with misleading discounts in a landmark case brought by the Australian Competition and Consumer Commission (ACCC). This finding came after Coles reported strong sales growth early in the year, driven by a 4.0% year-on-year increase in supermarket sales revenue to $9.8 billion.
The ACCC has also taken action against Woolworths, and experts like Today Money Expert Joel Gibson suggest that similar findings could be made against the company. A Coles spokesperson said: “We acknowledge the Federal Court decision in relation to the ACCC proceedings. Our priority has always been – and will continue to be – delivering value to our customers.”
“The Court found that all price increases resulted from supplier cost price increases and were, therefore, commercially justifiable. This case highlights the importance of clarity for both retailers and customers alike. And the need for clear, practical guidance on minimum price establishment periods to ensure the retail industry can avoid unnecessary litigation in future. We are in the process of reviewing the judgment.”
Ongoing Challenges for Retailers
As the retail landscape continues to evolve, supermarkets like Coles and Woolworths face increasing scrutiny over their pricing strategies and customer communications. While the recent paper bag fee increase may seem minor, it adds to the growing list of concerns for consumers navigating the current economic climate.
With more Australians turning to online shopping, the pressure on retailers to maintain transparency and fairness is higher than ever. The challenge lies in balancing profitability with customer satisfaction, especially during times of economic uncertainty.
For now, Coles remains focused on ensuring its services remain convenient and reliable, while also addressing the legal and ethical considerations that come with running a large-scale retail operation.
