Merchandizer eCommerce Blog ArticleThe Dreaded Return Policy
If you're going to sell your products online, eventually you're going to be faced with a return and make sure you have an airtight return policy posted on your site. Most people will use your return policy sparingly and if you have an ironclad one posted, it will eliminate those spur of the moment guilt shoppers (we all know someone like this) who purchase something and then almost immediately return it to the store, over and over and over. This creates a lot of paperwork and shuffling around of inventory counts and having a good return policy will usually cut down on handling those types of returns.
Return policies vary from store to store online and you'll have to determine the best one for your business; but here some basics:
* Offer a store credit instead of actual money back. This not only entices your customers to come back and shop at your store, generally people spend more than their credited amount.
*Will you charge a return to stock fee? If you receive back an item, many companies charge a 10% return to stock fee that they deduct from the amount refunded. If this is your policy, be sure it is stated clearly on your website or you might have a very angry former customer burning up your email box or phone lines.
*Do you refund shipping amounts? Many online businesses will only refund or give a store credit for the actual cost of the item at the time of purchase, excluding shipping and tax. This is an individual decision you will have to make for you business.
* Be aware of fraud. Some of the smartest customers you will have will also be looking to rip you off. It doesn't happen often, but a common trick is to purchase something online using a fraudulent credit card number and then ask for a refund before the person who has lost their card has had time to notice and report their card as lost or stolen. This happens most frequently with people who use shopping carts without CVV and other safety features. If you aren't using this type of shopping cart program, talk to Merchandizer- this can greatly eliminate your chances of being hit with this type of rip-off.
Now that you know the basics for a return policy, design one that will make both you and your customers happy.
Return policies vary from store to store online and you'll have to determine the best one for your business; but here some basics:
* Offer a store credit instead of actual money back. This not only entices your customers to come back and shop at your store, generally people spend more than their credited amount.
*Will you charge a return to stock fee? If you receive back an item, many companies charge a 10% return to stock fee that they deduct from the amount refunded. If this is your policy, be sure it is stated clearly on your website or you might have a very angry former customer burning up your email box or phone lines.
*Do you refund shipping amounts? Many online businesses will only refund or give a store credit for the actual cost of the item at the time of purchase, excluding shipping and tax. This is an individual decision you will have to make for you business.
* Be aware of fraud. Some of the smartest customers you will have will also be looking to rip you off. It doesn't happen often, but a common trick is to purchase something online using a fraudulent credit card number and then ask for a refund before the person who has lost their card has had time to notice and report their card as lost or stolen. This happens most frequently with people who use shopping carts without CVV and other safety features. If you aren't using this type of shopping cart program, talk to Merchandizer- this can greatly eliminate your chances of being hit with this type of rip-off.
Now that you know the basics for a return policy, design one that will make both you and your customers happy.
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