News | National
10 Jul 2025 16:38
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > National

    Are ‘ghost stores’ haunting your social media feed? How to spot and avoid them

    Behind the illusion of prestige and luxury is cheap, poorly manufactured clothing from Chinese factories.

    Gary Mortimer, Professor of Marketing and Consumer Behaviour, Queensland University of Technology
    The Conversation


    The offer pops up in your social media feed. The website is professional and the imagery illustrates an Australian coastal region, or chic inner-CBD scene.

    The brand name indicates this exclusive fashion retailer is based in Melbourne, Sydney, Adelaide, or an exclusive enclave such as Double Bay or Byron Bay.

    The businesses have history, having apparently been “established” 30–40 years ago, and a story. The owners have reluctantly decided to close or relocate, resulting in significant discounts.

    However, behind the illusion of prestige and luxury, is cheap, poorly manufactured clothing from Chinese factories.

    The recent growth of these online “ghost stores” has led the Australian Consumer and Competition Commission to issue public warning notices about four websites.

    Everly-melbourne.com, willowandgrace-adelaide.com, sophie-claire.com and doublebayboutique.com are the four named.

    A new type of scam

    The ACCC’s Targeting Scams report estimated Australians lost A$2.74 billion in 2023. Most losses were from investment scams ($1.3 billion), remote access scams ($256 million), and romance scams ($201.1 million).


    Read more: 3.5 million Australians experienced fraud last year. This could be avoided through 6 simple steps


    However, online ghost store scams are so new, researchers and government agencies have not yet had time to measure the financial impact these businesses are having on consumers or legitimate fashion businesses.

    It is possible a consumer, once stung by a ghost store scam, will be less likely to shop with a legitimate online fashion retailer.

    This type of emerging scam was touched on in a 2015 report called Framework for a Taxonomy of Fraud. The report noted there were businesses selling “worthless or non-existent products”. Their sites made:

    misleading claims about products that are exaggerated, undervalued, or non-existent.

    Since the beginning of 2025, the ACCC reports it has received at least 360 complaints about 60 online ghost retailers. It says many more may be operating across several social media sites.

    Tricky tactics

    Ghost stores use a variety of tactics to attract unsuspecting customers.

    Price: Customers regularly assume higher prices mean higher quality. Most customers seeing a “leather” jacket for $19.74 on Temu would expect low quality. However, a silk maxi-dress from Everly Melbourne reduced from $209.95 to $82.95 – a 60% saving – seems reasonable and reflective of normal mid-season clearance pricing. That fact it’s still priced at more than $80 also implies good quality.

    Cosmopolitan localism: Researchers have reported that so-called cosmopolitan localism fosters meaningful consumer relationships with brands. Consumers are more likely to trust a business based in Melbourne or Byron Bay over one based internationally.

    Adding images of a physical store front creates credibility and “realness”. Customers feel confident to buy from a little business based in Melbourne, Sydney or somewhere well known to them.

    Storytelling: Storytelling can influence shoppers’ emotions and affect purchasing. It helps stimulate deeper emotional connections to a brand. Ghost stores will regularly create a narrative around “going out of business” to justify price discounts and pull on heart-strings.

    Layout: A professionally developed website, with high-quality images, detailed product information, online payment methods and order tracking, creates the illusion of authenticity. Researchers have found luxury brand website designs can create a strong sense of luxury. This increases a willingness to buy.

    How to spot a “ghost”

    When the post indicates “closing today” or “closing down sale ends tonight”, it is very easy to impulsively jump in to take advantage of the savings. However, before you click, check for these red flags:

    1. The website does not provide a contact phone number or physical address for the store. There might just be an email address or web form. Simply entering the suspected store into google maps will indicate no physical location.

    2. The website domain is “.com” rather than “.com.au”. This indicates the store is not an Australian-based business.

    3. Is the business registered? ABN Lookup is the free public view of the Australian Business Register – a quick search will identify that the Double Bay designer isn’t registered locally.

    4. Review platforms, including Trustpilot, often have negative reviews for the business, whereas the business’ website only features very positive reviews.

    5. The images of products or even the owner may be AI generated. For example, Harry – Melbourne, is apparently an artisan watchmaker. However, simply right-clicking on the image reveals Harry is an AI-generated image.

    A cautionary note

    Online shopping is risky. You can’t physically touch or interact with the product to determine its quality. Three types of risks are common when shopping online. These are performance risk (it doesn’t work, doesn’t fit well, or the quality is poor), financial risk (losing your money on a poor-quality product), and time-loss risk (refund processing takes weeks).

    As such, customers must trust the online retailer to act honestly and describe products accurately. When trust is breached, consumers will naturally become cautious even about legitimate online retailers.

    As ghost stores scams increasingly populate social media feeds, unsuspecting consumers will continue to get caught out. This will leave legitimate retailers exposed to scepticism and mistrust.

    The Conversation

    Gary Mortimer receives funding from the Building Employer Confidence and Inclusion in Disability Grant, AusIndustry Entrepreneurs' Program, National Clothing Textiles Stewardship Scheme, National Retail Association and Australian Retailers Association.

    This article is republished from The Conversation under a Creative Commons license.
    © 2025 TheConversation, NZCity

     Other National News
     10 Jul: Former junior Australian gymnast Waiaria Ellis is set to become the second youngest Test debutante in Wallaroos history after being named to face New Zealand in Wellington on Saturday
     10 Jul: Napier's 'Design Spun', spinning mill is closing, as well as its dye house - with 26 jobs going
     10 Jul: Rents in the Capital are at their lowest since 2022
     10 Jul: Police say a man charged with murdering a 31-year-old in Hamilton last night was known to the victim
     10 Jul: Kiwi electronic music duo Sachi are performing in Auckland and Wellington, next month
     10 Jul: An Auckland man who drove into a group in Ponsonby who'd attacked him, has been discharged without conviction
     10 Jul: Another earthquake's rattled Southland this morning
     Top Stories

    RUGBY RUGBY
    Scott Robertson is backing wing Caleb Clarke to find his mojo in the second test against France in Wellington on Saturday More...


    BUSINESS BUSINESS
    Napier's 'Design Spun', spinning mill is closing, as well as its dye house - with 26 jobs going More...



     Today's News

    Rugby League:
    Northern Mystics assistant coach Rob Wright believes the onus is on coaches to crackdown on rising bodily contact in the ANZ Premiership 16:27

    Rugby:
    Scott Robertson is backing wing Caleb Clarke to find his mojo in the second test against France in Wellington on Saturday 16:27

    Rugby:
    Former junior Australian gymnast Waiaria Ellis is set to become the second youngest Test debutante in Wallaroos history after being named to face New Zealand in Wellington on Saturday 16:17

    International:
    This couple say their strict meal-prep routine saves time, money and energy 16:07

    Entertainment:
    Sam Hunt and Hannah Lee Fowler have become parents for the third time 16:06

    Environment:
    More flooding and slips are possible for the top of South Island, as another bout of heavy rain approaches 15:47

    Entertainment:
    Candace Cameron Bure's son saved her marriage 15:36

    Business:
    Napier's 'Design Spun', spinning mill is closing, as well as its dye house - with 26 jobs going 15:27

    Entertainment:
    Gary Coleman's ex-wife has failed a voluntary lie detector test about the circumstances surrounding his death 15:06

    Business:
    Rents in the Capital are at their lowest since 2022 14:57


     News Search






    Power Search


    © 2025 New Zealand City Ltd