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Let’s face it: noÌýmatter how reasonable your prices orÌýgreat your products are, some customers will want toÌýreturn them. That’s why you need toÌýhave aÌýreturn policy. ItÌýsets expectations forÌýyour customers andÌýoutlines what they can expect ifÌýthey need toÌýreturn aÌýproduct.

InÌýthis article, we’ll walk you through theÌýbasics ofÌýcrafting aÌýreturn policy, including what information toÌýhighlight. You’ll find out how toÌýmake your policy asÌýcustomer-friendly asÌýpossible, all while increasing sales.

Bonus: we’ve included aÌýtemplate forÌýcrafting anÌýeffective return policy!

What IsÌýaÌýReturn Policy?

´¡Ìýreturn policy isÌýaÌýset ofÌýguidelines that customers can refer toÌýwhen they need toÌýreturn aÌýproduct. ItÌýspells out theÌýconditions under which you, theÌýstore owner, will accept returns.

´¡Ìýreturn policy usually contains theÌýfollowing information:

• ´¡Ìýlist ofÌýreturn andÌýrefund options.
• ´¡Ìýprocedure forÌýreturning aÌýpurchased product.
• ´¡Ìýprocedure forÌýreturning aÌýdamaged, faulty, orÌýincorrect item.
• ´¡Ìýlist ofÌýnon-refundable items.
• ´¡Ìýlist ofÌýnon-refundable cases.
• Fees andÌýcosts associated with aÌýreturn.

Your return policy should beÌýclear andÌýeasy toÌýunderstand soÌýthat customers know what toÌýexpect before they make aÌýpurchase.

´¡Ìýgood return policy can turn around aÌýpoor customer experience. Play itÌýright, andÌýyou can even turn itÌýinto aÌýbrand asset.

Why Your Business Needs aÌýReturn Policy

Returns are aÌýpart ofÌýonline shopping. IfÌýyou have anÌýonline store that sells products, returns are inevitable. But why exactly doÌýyou need aÌýreturn policy? After all, can’t you just state “No returns” onÌýyour online store’s homepage? OrÌýaccept them onÌýaÌýcase-by-case basis?

´¡Ìýreturn policy isÌýaÌývital part ofÌýtheÌýshopping experience andÌýrunning aÌýbusiness. Here’s why you need it:

ItÌýBuilds Trust with Customers

´¡Ìýreturn policy shows that you, asÌýtheÌýstore owner, are confident inÌýyour products. ItÌýalso demonstrates that you’re willing toÌýstand byÌýyour products andÌýtake responsibility ifÌýsomething goes wrong. This helps build trust with potential customers andÌýencourages them toÌýbuy from you.

ItÌýSets Customer Expectations

´¡Ìýreturn policy sets customer expectations byÌýspelling out theÌýconditions under which you, asÌýtheÌýstore owner, will accept returns. This helps toÌýavoid misunderstandings andÌýdisappointed customers later on.

ItÌýReduces Risk ofÌýFraud

´¡Ìýreturn policy can help reduce theÌýrisk ofÌýfraud byÌýmaking itÌýclear what isÌýandÌýisn’t covered. For example, you can state inÌýyour return policy that customers can return products only ifÌýthey are defective.

ItÌýIsÌýRequired ByÌýLaw

One ofÌýtheÌýmain reasons forÌýhaving aÌýreturn policy isÌýlegal. InÌýmany countries, you are required byÌýlaw toÌýaccept returns onÌýmost merchandise within aÌýreasonable period (say, 15-60Ìý»å²¹²â²õ).

For example, , signs saying “no returns,” “no refunds,” etc. are illegal. InÌýtheÌýUK, theÌýlaw that online shoppers “have theÌýright toÌýcancel their order forÌýaÌýlimited time even ifÌýtheÌýgoods aren’t faulty.”

Additionally, UKÌýlaw states, “You must offer aÌýrefund toÌýcustomers ifÌýthey’ve told you within 14Ìýdays ofÌýreceiving their goods that they want toÌýcancel. They have another 14Ìýdays toÌýreturn theÌýgoods once they’ve told you.”

´¡Ìýreturn policy will make sure that you’re onÌýtheÌýright side ofÌýtheÌýlaw.

Customers Expect You toÌýHave aÌýReturn Policy

Many shoppers will refuse toÌýbuy from you ifÌýyou don’t offer easy returns. This especially applies toÌýonline stores because customers can’t try onÌýorÌýtest products before buying them.

Having aÌýreturn policy not only influences customers’ decision toÌýbuy from you, but also affects whether orÌýnot they’re going toÌýshop with you again:

• The states that 54% ofÌýshoppers are unlikely toÌýpurchase aÌýproduct they want ifÌýtheÌýretailer has aÌýpoor orÌýunclear return policy.
• believe free returns are anÌýimportant consideration factor when shopping online.
• According toÌýtheÌý, 84% ofÌýrespondents say aÌýpositive returns experience encourages them toÌýshop with aÌýretailer again.

The data isÌýclear: there are legal andÌýbusiness reasons forÌýcrafting aÌýstrong return policy. Let’s find out how toÌýcreate one forÌýyour own store.

How toÌýWrite anÌýEffective Return Policy

It’s important toÌýthink ofÌýcustomers that want toÌýreturn aÌýproduct asÌýpotential future buyers andÌýfree marketing. You should aim toÌýimprove their shopping experience inÌýyour store rather than treat them asÌýaÌýproblem.

Remember theÌýpower ofÌýword ofÌýmouth. When you provide aÌýtransparent return policy andÌýwork with theÌýcustomer toÌýsolve their problems, they might tell their friends andÌýcolleagues about their positive experience. That will spread theÌýword about your business.

With that inÌýmind, let’s look atÌýhow you should write aÌýcompelling return policy.

Keep Your Return Policy Transparent

Customers should beÌýable toÌýfind your return policy easily. Place aÌýlink toÌýitÌýinÌýtheÌýheader orÌýfooter ofÌýyour website, andÌýmake sure it’s visible onÌýtheÌýproduct page.

Don’t make customers put inÌýextra effort toÌýfind your return policy. While not everyone reads theÌýreturn policy, having itÌýupÌýfront andÌýcenter reduces shoppers’ doubts.

For example, shoppers can find theÌýAmazon return policy byÌýclicking theÌýlink inÌýtheÌýfooter ofÌýtheir website:

´¡Ìýproduct-specific policy isÌýalso mentioned onÌýeach product page:

Don’t forget toÌýput aÌýlink toÌýyour ecommerce return policy inÌýorder confirmation emails. This makes your customers feel ²õ±ð³¦³Ü°ù±ð—t³ó±ð²â know that ifÌýthey don’t like theÌýproduct, they can always return it.

You can even provide examples with images forÌýyour customers inÌýcase they ever need toÌýreturn theÌýproduct.

IfÌýyour customers are able toÌýreturn aÌýproduct inÌýdifferent ways, state theÌýhow-to forÌýeach option. For example, theÌýIkea return policy explains how toÌýreturn aÌýproduct in-store, via aÌýcollection point, orÌýpickup:

Don’t Blindly Copy Your Return Policy from Another Business

You should not copy some other business’s return policy. Not only does that look bad, but your return policy should beÌýdependent onÌýfactors specific toÌýyour business. This includes industry type, business margins, andÌýeven business philosophy.

For example, ifÌýyou’re selling clothes online, you will need toÌýpersonalize your return policy toÌýyour specific business andÌýtarget audience. You might want toÌýaccept returns onÌýsome product categories while excluding others, such asÌýunderwear.

It’s aÌýgood idea toÌýhave detailed instructions onÌýyour return policies forÌýdifferent product categories asÌýwell.

For example, theÌýTarget return policy includes aÌýlist ofÌýreturn exceptions:

There are various return policy templates you can use forÌýyour store instead ofÌýcopying other brands’ policies. However, make sure toÌýadjust theÌýtemplate toÌýyour business.

Apart from providing your address andÌýreturn procedures, you need toÌýspecify theÌýproduct conditions you will accept. For example, you may have aÌývery detailed procedure forÌýreturning aÌýdamaged product, aÌýunique list ofÌýnon-refundable items, andÌýsoÌýon.

ToÌýmake writing aÌýreturn policy easier forÌýyou, we’ve prepared aÌýtemplate you can use. Download itÌýandÌýbeÌýsure toÌýedit itÌýtoÌýyour business needs.

Make aÌýReturn Period Longer

Most online stores accept returns 30ÌýorÌý60Ìýdays after theÌýpurchase. While this isÌýgood forÌýimproving trustworthiness, ifÌýyour return period lasts forÌý90Ìýdays, 120Ìýdays, 365Ìýdays, orÌýeven forÌýaÌýlifetime, you will likely see aÌýjump inÌýyour sales.

There are different reasons forÌýextending return periods. For example, during theÌýcoronavirus pandemic, many retailers their return andÌýexchange periods toÌýgive consumers more flexibility toÌýget refunds andÌýlet their customer service reps process returns safely.

However, there are many reasons forÌýextending your return period. One ofÌýthem isÌýthat people are still skeptical ofÌýbuying products online, especially big-ticket items. IfÌýyou sell expensive products, consider extending your return policy.

Extend your policy asÌýlong asÌýyou can because theÌýmajority ofÌýtheÌýcustomers will keep theÌýproduct. They just want that extra security inÌýknowing you have aÌýreasonable return policy.

Keep theÌýLanguage Simple

Write your return policy asÌýifÌýyou’re having aÌýconversation with your target audience. Keep theÌýsentences short andÌýtoÌýtheÌýpoint.

ItÌýshouldn’t take your customer more than aÌýcouple ofÌýminutes toÌýfigure out how your return policy works. Don’t make things overly complicated with legal jargon. ItÌýmight confuse shoppers andÌýincrease theÌýchances ofÌýthem abandoning your website altogether.

When you use terms that are easy toÌýunderstand, itÌýbecomes easier forÌýyour customers toÌýfollow your policy.

For example, theÌýWalmart return policy states from theÌývery beginning that they “make returns easy.” All customers have toÌýdoÌýisÌýclick aÌýbutton andÌýenter theÌýtransaction number onÌýtheÌýreceipt toÌýfind their items andÌýstart aÌýreturn process.

Another example isÌýtheÌýHome Depot return policy: before diving into theÌýdetails ofÌýtheÌýreturn process, they sum itÌýupÌýtoÌýshow that it’s asÌýcustomer-friendly ²¹²õÌý±è´Ç²õ²õ¾±²ú±ô±ð.

The policy isÌýwritten inÌýsimple language without anyÌýlegal jargon. They simply state that “returns are free andÌýeasy.”

Define theÌýExpected Condition ofÌýtheÌýReturned Item

When writing your company’s return policy, explicitly say what condition you expect theÌýproduct toÌýbeÌýinÌýwhen returned. Also, include instructions forÌýhow you expect theÌýproduct toÌýbeÌýpackaged ifÌýyou do.

You want toÌýhave aÌýfriendly return policy. But atÌýtheÌýsame time, itÌýhas toÌýbeÌýfair. You don’t want customers returning you aÌýbroken phone orÌýtorn clothes. Failing toÌýinclude this information will likely lead toÌýcustomers misusing your return policy.

For example, theÌýBest Buy return policy clearly states that items need toÌýbeÌýreturned inÌýaÌýÁª±ô¾±°ì±ð-²Ô±ð·É ³¦´Ç²Ô»å¾±³Ù¾±´Ç²Ô.´Ï

Decide Whether toÌýGive aÌýFull Refund orÌýStore Credit

Sometimes customers want toÌýreturn aÌýproduct because they got theÌýwrong size orÌýcolor. You can offer them theÌýoption ofÌýin-store credit orÌýaÌýfull refund.

Many customers demand aÌýfull refund ofÌýtheir money, andÌýstores often refund purchases inÌýfull. However, it’s worth offering in-store credit. Usually, banks charge aÌýsmall fee forÌýrefunds, soÌýit’s better toÌýavoid it.

DoÌýnot push theÌýin-store credit option. Instead, politely ask customers ifÌýthey want toÌýgoÌýdown that route andÌýexplain its benefits. For example, you could offer toÌýenroll them inÌýyour loyalty program ifÌýthey continue toÌýshop inÌýyour store.

In-store credit isÌýalso aÌýway toÌýboost sales. Customers are more likely toÌýuse in-store credit toÌýshop forÌýanother product orÌýeven buy more than their store credit covers.

Another alternative toÌýaÌýrefund isÌýoffering your customers aÌýgift card equal toÌýorÌýmore than theÌýcost ofÌýtheÌýreturned product.

Disclose Any Fees Associated With Returns

Are you charging your customers forÌýtheÌýreturn shipping? OrÌýare you taking care ofÌýreturns andÌýrestocking? You need toÌýclearly state that inÌýyour policy.

Failing toÌýstate anyÌýandÌýall return fees beforehand will upset your customers. From their perspective, not only did you send them theÌýwrong product, but you also want them toÌýsend itÌýback toÌýyou atÌýtheir expense.

Frustrated customers might goÌýonÌýsocial media andÌýcomplain about your business. You definitely want toÌýavoid that. Explain inÌýyour return policy when you expect your customers toÌýpay andÌýwhen you don’t.

For example, theÌýSephora return policy states that there are noÌýreturn shipping orÌýhandling fees:

Plus, providing free shipping only helps toÌýkeep customers. IfÌýyou can afford it, paying forÌýreturn shipping gives aÌýcustomer more than enough reason toÌýcome back andÌýshop again.

Create aÌýFAQ Page

Having aÌýFAQ page goes aÌýlong way. ItÌýallows customers toÌýquickly find answers toÌýtheir questions.

FAQs particularly work well with return-related questions, since customers often have similar questions. For example:

• “How long does theÌýreturn andÌýexchange policy last?”
• “How doÌýIÌýplace aÌýreturn request?”
• “Do IÌýneed toÌýship theÌýproduct back myself?”
• “How doÌýIÌýcheck theÌýstatus ofÌýmyÌýreturn?”
• And soÌýon.

For inspiration, take aÌýlook atÌýtheÌýFAQ forÌýtheÌýSHEIN return policy:

Actively Promote Your Return Policy

Don’t just write aÌýgood return policy, but promote itÌýeverywhere you can: onÌýyour homepage, shopping cart, checkout pages, newsletters, andÌýeven inÌýyour offline promotions.

Make sure you mention your return policy everywhere itÌýmakes sense. You’ll beÌýsurprised how many new customers you can get byÌýpromoting your return policies.

According toÌý, 86% ofÌýglobal consumers surveyed responded that they looked forÌýretailers with easy product return policies when deciding where toÌýshop. 81% said they would switch toÌýaÌýdifferent retailer ifÌýthey had aÌýbad experience with returning items.

ByÌýactively promoting your return policy, you can reel more customers in.

You could even goÌýfurther byÌýincluding aÌýprinted copy ofÌýyour return policy inside every package you ship.

How toÌýUse Your Return Policy toÌýIncrease Sales

Some companies have successfully built anÌýentire business around their return policies. Zappos isÌýone ofÌýthem. Their 365-day free return policy gives them anÌýedge over competitors. They are soÌýproud ofÌýitÌýthat they highlight itÌývia aÌýbanner visible onÌýall pages ofÌýtheir website:

This extremely liberal return policy was used toÌýmake customers buy their products. Over time, asÌýTony Hsieh (Zappos’ founder) documents inÌý“Delivering Happiness,” itÌýbecame theÌýdifferentiating factor andÌýtheÌýfoundation ofÌýtheir business ethos.

AsÌýaÌýsmall business, you could also take advantage ofÌýhighlighting your return policies. That will improve your conversion rate andÌýpositively affect how people perceive your brand.

Here are some tips forÌýhow toÌýgoÌýabout it:

Share Testimonials ofÌýCustomers Who’ve Successfully Returned Products

When aÌýcustomer returns anÌýitem, use their experience toÌýyour advantage.

Once you process theÌýreturn, don’t beÌýafraid toÌýask forÌýaÌýtestimonial. Ask forÌýtheir testimonial, name, andÌýphoto. You can add itÌýtoÌýyour “Return Policy” page.

When shoppers see testimonials, they’re more likely toÌýbuy from you. Always showcase theÌýpositive experiences ofÌýyour customers onÌýyour business profiles onÌýsocial media.

BeÌýLiberal with Your Policies

Offering aÌýgenerous return policy can act asÌýaÌýway toÌýattract more customers. However, beÌýsure toÌýcalculate theÌýcost ofÌýreturns before committing toÌýanÌýoverly generous one.

For shoppers, “Free Shipping andÌýReturns” isÌýaÌýdream come true. ItÌýmeans that they pay forÌýwhat they see. IfÌýthey don’t like it, they can send itÌýback.

It’s also fairer toÌýtheÌýcustomer. that theÌýmain reason forÌýonline purchase returns worldwide isÌýfaulty, damaged, poor-quality goods, orÌýproducts not being asÌýdescribed accurately online.

But forÌýaÌýseller, free shipping andÌýreturns could quickly become aÌýlogistical nightmare. Figuring out how much money you will lose onÌýreturned sales could beÌýaÌýbigger problem than itÌýlooks. Your profit margins will undoubtedly goÌýdown inÌýtheÌýshort term.

That said, according toÌýaÌý, 76% ofÌýrespondents believe that free returns are important factors when shopping online.

Having aÌýcustomer-friendly returns policy boils down toÌýhow well you manage your logistics. You can recover your lost profits byÌýimproving reverse logistics. That process refers toÌýmoving goods from customers back toÌýtheÌýsellers orÌýmanufacturers.

The returns process isn’t just about bringing theÌýitem back toÌýtheÌýwarehouse. Sometimes you have toÌýget theÌýreturned item back inÌýstock, return itÌýtoÌýtheÌýmanufacturer, orÌýsell itÌýonÌýtheÌýsecondary market (the channels that provide aÌýmeans toÌýsell andÌýbuy returned orÌýexcess goods).

Keep this inÌýmind when you create aÌýliberal policy. Calculate how much money you are losing onÌýeach return, your average return rate, andÌýtheÌýimpact onÌýyour margin each return has.

Make Returns Quickly

Customers love when things happen quickly, whether it’s shipping orÌýreturns.

IfÌýyou have theÌýresources toÌýaccept returns within aÌýcouple ofÌýdays, you should definitely doÌýit. Efficiency leaves aÌýgood impression onÌýyour customers.

´¡Ìýgreat example isÌýWarby Parker. With their “Home °Õ°ù²â-´Ç²Ô´Ï policy, they let you try five frames forÌý5Ìýdays, andÌýyou get toÌýkeep theÌýone you like. Plus, all theÌýshipping andÌýreturns are free ofÌýcost.

Write Your Stellar Return Policy

You can’t run aÌýsuccessful ecommerce store without aÌýreturn policy. Instead ofÌýtreating returns asÌýaÌýhassle, see itÌýasÌýanÌýopportunity toÌýbuild your brand andÌýflex your logistical muscles.

Use theÌýabove tips toÌýcraft aÌýreturn policy that’s customer-focused. Start byÌýfollowing these steps:

• Identify your return rate. This isÌýtheÌýpercentage ofÌýtotal orders returned byÌýcustomers. Here’s theÌýformula: (Cost ofÌýOrders Returned /ÌýTotal Sales) xÌý100.
• Keep your return rate inÌýmind toÌýcalculate whether you can offer aÌýmore lenient return policy (say, 90-180Ìý»å²¹²â²õ).
• Choose aÌýcouple ofÌýstores whose return policy andÌýpolicy page you admire. Pick actionable insight from each policy.
• Consult aÌýlawyer andÌýcraft aÌýpolicy that encapsulates your brand philosophy andÌýassists customers. This will depend onÌýtheÌýcountry you live in, soÌýit’s important toÌýfind aÌýlawyer who understands your industry andÌýworks well with you.

And remember: aÌýreturn policy isÌýaÌýlegal document. Use theÌýadvice inÌýthis article toÌýguide you inÌýtheÌýright direction. However, you should definitely consult your lawyer before you commit toÌýaÌýreturn policy.

Now you know how toÌýwrite anÌýeffective return policy. Once you get itÌýupÌýonÌýyour website, make sure itÌýworks forÌýyou andÌýyour customers. Not only can itÌýstrengthen your relationship with your customers, but itÌýcan also attract more buyers. Start working onÌýsetting upÌýaÌýfair andÌýeffective return policy today!

Ìý

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