Along with several other policies you’ll want to have on your web site, a return policy is one of the most important in the eyes of your customers. Let’s face it – when you purchase goods from a web site, don’t you want to know what the return policies are in case you have an issue? You’ll be far more successful turning your web site visitors into customers if you include a return policy as part of the purchase process.
Your return policy will contain all the conditions in which you allow your customers to return a product, or how they are able to secure a refund if you are offing a digital product. With digital products, it’s not uncommon to provide customers up to month or more to get a refund. However, there are those who don’t offer any refunds based on the type of digital product being offered. Regardless, you’ve got to let your customers know what your policy is.
A solid return policy will not only you and your company, it’ll also protect your customer. In many cases – especially with digital products – 100% no questions asked refund policies are quite common. These act as sales hooks to help offset any apprehension about buying the product. Be sure to spell out your return policy in language that doesn’t need to be deciphered by an attorney. Your customers have to understand without any question as to what your policy is so there are no surprises down the road. If you offer a 100% no questions asked refund and someone asks for a refund, give it to them! Don’t make them jump through hoops.
In order to have an effective return policy, the following 7 components must be included in it:
1. Time Limit
Set a maximum time limit as to when returns will be accepted. This can be in days or months.
2. Product Condition
Let your customers know under what conditions you’ll take a product back. If there is obvious signs of use, will you take it back?
3. Restocking Fee
Let you customers know if you will charge any type of restocking fee and how that fee will be collected – deduction from the refund is the most common, of course.
4. Exceptions
Be sure to outline any specific products that you won’t accept returns on.
5. Return Shipping Responsibility
You’ll need to let your customers know who is on the hook for the return shipping costs. Some businesses will pick up the cost, or even send out a pick up tag via UPS or other shipping company. Most, however, leave the return shipping process and cost for the customer to handle.
6. How Refunds Are Handled
Do you offer merchandise credit only, or will you provide refunds? If you issue refunds, be sure to let your customers know how soon they will see it on their credit card, or how soon they will receive a check from you.
7. Third Party Issues
If you have products drop shipped to your customers, be sure to let your customers know about the return policies of your drop shipper. You’ll also want to give them the contact information for your drop shipper should they wish to initiate a return.
Once again, these policies should be common sense. If you are operating a reputable business and plan to be in business for the long term, communication with your customers regarding various policies is essential. You’ll be sure to convert more visitors into customers when you have clear cut policies in places, such as a return policy as outlined above.
