While returns are a standard part of ecommerce, how an online store manages them can impact customer trust, reorder rates, return expenses, and customer experience. The ecommerce return policy clearly explains what a shopper can return, when they can return it, what the product needs to be like, and how they will be compensated with a refund, exchange, or store credit. Return policies are also a consideration before someone orders something. Return information is necessary for a lot of shoppers because it provides a sense of security that they have the opportunity to return a product if it doesn't match their needs.
Meanwhile, an unclear or too restrictive policy can cause confusion, support requests, disagreements, and unnecessary headaches. A good return policy must create a balance between customer convenience and the return logistics costs of the company, including return shipping, labor, inventory management, and return fraud. The following 7 ecommerce return policy best practices can help online stores develop a policy that's easy to read, simple to use, and easy to manage.
What is an Ecommerce Return Policy?
An ecommerce return policy is a set of rules that helps to clarify when and how people can return items that they have bought online. Typically includes the return window, product condition, eligible items, excluded items, return options, shipping fees, returns, exchanges, store credit, return labels, processing time to process, and any fees.
7 Best Practices for an Effective Ecommerce Return Policy
The seven best practices for an effective ecommerce return policy are to establish priorities, make sure the policy is readily accessible, address the key return questions, simplify the return process, include at least one free return option where possible, and make sure that the policy is consistent with your brand and customer experience.
Define the Priorities of Your Return Policy
The return policy should not just be about reducing returns, but also about balancing customers' experience and business costs. A product-centric policy can have shorter return windows, more exclusions, and higher return charges to reduce costs, while a customer-centric policy can have longer windows, fewer restrictions, and lower return charges to reduce costs.
It all depends on the average order value, customer lifetime value, product category, and profit margins. A better return process might be more valuable than reducing the cost of returns, as customers are likely to purchase again. The values of your company are also included in the policy. If a brand is friendly and approachable, it must be the same when they explain returns. Returns are not an activity but part of the overall customer experience.
Make Your Return Policy Easy to Understand
Customers should not have to search through several pages to find your return policy. Add clear links for purchase and support information where customers would expect to find them. Useful locations include:
- Website footer
- Product pages
- Category pages
- Cart
- Checkout
- FAQ and help pages
- Shipping policy
- Order tracking pages
- Customer emails
The policy should not be hidden in a generic FAQ, contact us, or shipping section. These pages can also be accessed from it. However, customers must have a direct link to the full policy.
In addition to making it easy to locate the policy, making it easily accessible will also make sure customers are aware of the conditions for returns prior to buying, thereby avoiding misunderstandings later on.
Resolve The Big Three Questions: When, How, and What?
An effective return policy should be able to answer three simple questions: What is the best way to make a return? What can I return? And when can a customer return an item?
Specify the return window and give the explanation of when it starts. It could begin from the order date, shipment date, or delivery date. Usually, 30 days are offered, and sometimes even 60 or 90 days. It depends on the products you are selling and how long you think it will take to make a decision to keep those products. Also consider using different windows for refunds, exchanges, and store credit as appropriate.
What are the ways for customers to return items?
Describe each return option, including mail-in returns, in-store returns, courier returns, or an online return self-service option. Include an explanation that a prepaid return label is provided for the customer, where the package will be sent, and how the customer can follow up.
Which products are eligible?
Provide clear product information and limitations. Products may be requested to be unused or unopened, or available with original tags and packaging. As well, list products that are sold for final use, hygiene related items, warranties, damaged products, etc. Do not include too many complicated restrictions in the policy, but keep the conditions reasonable and easy to understand.
Keep the Return Policy Easy to Follow
A return policy can only be effective if your team can implement it effectively. Rules that are too complex or have too many exceptions can lead to misunderstandings among customers and with customer service. Make it as simple as possible. Be clear about who is eligible, what information is required, how it should be returned, what is required for inspection, and the resolution. Automating returns can also help minimize manual tasks.
The self-service return portal can verify eligibility, generate return labels, guide the user on what to do, monitor the returned items, and direct the customer to a refund, exchange, or store credit. Your business should also have a clear process to follow for exceptions. A broken item or an unexpected delivery issue could be resolved differently. Dealing with these exceptions in advance helps avoid individual cases that can cause a disruption in the overall return process.
Provide Alternate Return and Resolution Options
Sometimes, customers do not wish to receive a refund. Providing them with options can make the return experience more flexible and keep revenue in the business. Depending on products and operations, consider offering:
- Refunds
- Product exchanges
- Store credit
- Warranty replacements
- Repairs where applicable
- In-store or mail-in returns
If the customer's problem is solved by exchanges or store credit, they can help to keep revenue in the business. But consumers should be aware of the choices they have, not just what they are being sold if they feel pressured to buy and sell. Returns for warranties can also be beneficial for products with potential defects or damage post-sale. It is important to clarify each option in the return policy.
Provide One or More Free Returns
Shipping and return fees can cause problems for consumers. If you cannot offer a completely free return, then at least offer one free return option. For instance, you can offer free shipping for returns or even offer store credit for some returns, and charge a fee for others. Another way is to offer a free return on certain products, certain groups of customers, or even on certain products that are defective or damaged.
Return costs should be weighed against customer lifetime value, conversion, retention rates, shipping costs, and return rates. Although a free return option can improve the buying experience, the business must still consider transportation, labels, processing, and inventory costs. The important factor is to communicate the return shipping fee before a customer places any order.
Make Your Returns Strategy Work for Your Business
Your return policy should be like the rest of your ecommerce experience. Apply the same brand tone of voice, readable formatting, and simple language that customers already use throughout your site. Try not to use unnecessarily long passages of text or threatening or complicated explanations. The rules need to be easy to read for the customer.
Your customer experience should also be reflected in the policy. If your store is convenience-oriented, don't add steps to the return process. If sustainability is a key value of your brand, think about what happens to returned products, packaging, recycling, refurbishment, and resale. A consistent return policy can help to transform a post-purchase issue into a manageable customer experience.
Conclusion
An excellent ecommerce return policy does more than just explain to customers how to get their money back. It communicates to customers before they buy, eliminates confusion once they receive your goods, and helps you keep an orderly process in place for refunds, exchanges, store credit, and returned goods.
The best way to do this is to make sure the policy is visible, easy to understand, flexible, and consistent. Meanwhile, monitor the causes of returns and apply the data to improve product pages, packaging, fulfillment, and customer service. If managed appropriately, returns can be a well-organized part of the ecommerce experience instead of a constant source of confusion and expense.
