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BlogHow to Create a Customer Focused eCommerce Return Policy

How to Create a Customer Focused eCommerce Return Policy

A good eCommerce return policy is crucial for a successful business as returning items cannot be avoided. Many shoppers base their future shopping decisions on their most recent return experience. Additionally, a great number of shoppers will make a purchase only after checking a retailer’s return policy. It is safe to say that your return policy will have a significant impact on your potential customers, your profits, and customer loyalty and retention.

The List of Best Return Policies

Before we dig in, here are some quick examples of great return policies that work for eCommerce companies.

  • Free Returns: Company pays for shipping equals a happy customer
  • No Questions Asked Returns: Company takes the blame, doesn’t challenge the customer.
  • Generous Return Window: 60 or 90 days typically. However, some brands go as far as a 365 day return window on items.
  • No Restocking Fee: This is a clear one, avoid this at all costs. Want an angry customer? Charge them admin fees.
  • Return Slips: Include a return slip with instructions on how to return an item. It’s essential for clothing brands
  • Exchange System: Wrong size ordered? No worries, your courier collects it and drops off the correct item. Free of charge.

How to Implement a Good Return Policy

Finding a balance and defining priorities

It is quite common for a return policy to feel like a dispute between the customer and the seller. More often than not, the customer will ask for a refund, while the business will make efforts to limit the costs. However, finding a balance between the customer’s requests and your financial interest is a very important step if you want to implement a good return policy. Let’s be honest from a damaged item to lacklustre product descriptions, many things can affect a return.

There are two different approaches when it comes to return policies: a product-focused approach and a customer-focused approach. The first one focuses on limiting losses and maximizing recovery value on returned products. This type of policy is less customer-friendly as it is stricter, has a shorter return deadline, more conditions, and more expensive fees. On the other hand, a customer-focused return policy will prioritize customer satisfaction through more relaxed deadlines, fewer conditions, and less focus on the sellers’ financial interests.

You can, of course, choose one or the other, but the secret to developing an effective return policy is to find a perfect balance. If you are not sure which way to lean in your return policy, you can make a decision based on the relative customer value. If winning and keeping a customer is more important than making a sale, you should opt for a more customer-friendly return policy.

Another aspect that can influence your return policy is represented by the company values. If your company works hard to create a friendly, client-focused image, you should reflect this in your return policy.

Make sure your clients can easily find your return policy

As mentioned above, a lot of shoppers will check the return policy before purchasing an item from your company. If they are unable to find the terms of the return policy, chances are they will take their business elsewhere as they might lose trust in your online store. So, even if your goal is to reduce the number of product returns, you should still provide your visitors with all the necessary information. It is highly recommended to include a link to the return page in the website’s footer, so it is always easy to find for shoppers. A common mistake that many businesses make is to hide their return policy section in a different section such as the FAQ page. This forces the shoppers to spend more time searching for the information that they need and this can make them feel frustrated and thus, less likely to make a purchase. This is why eCommerce giants like Amazon do well.

Customer trying to find a return policy
Customer trying to find a return policy

Answer your Shoppers’ 3 big questions in your return policy

We are all shoppers and we all ask the same three questions when we want to know more about a store’s return policy: When? How? And What? So make sure you prioritise answering these questions concisely and transparently.

When? – The first thing that your potential clients will want to know is how much time they have to return a product. You have to specify the length of the return window and if it starts at the order date, the shipment date, or the delivery date. It is quite common for online stores to start the return window with the delivery date, as that is when the customer receives the product. A return window is generally around 30 to 60 days long.

How? – Make sure you describe the different return options that you offer such as exchanges, refunds, store credit, etc. In terms of profitability, exchanges are a good option and it is safe to say that almost all online stores offer this option. However, a customer who is not satisfied with the quality of the product might refuse a product exchange, so make sure you also offer other options. If the clients are unhappy with a product, they should have the option to receive store credit or as a last solution, a partial or a full refund.

 What? – The what is represented by the return conditions and potential product exclusions. Make sure you clearly explain whether certain products are non-returnable and what are the general rules that your clients must follow to ensure that they return an item correctly. For example, most retailers mention that the products must have the tags intact and be in their original package for a return to be completed successfully.

Make the returning process as easy as possible

A complicated return process can deter shoppers from purchasing your platform. Make sure you make the whole experience as simple as possible for the customers because this will encourage them to make a purchase. There are many online stores that have complicated return policies and chances are, your potential customers already had a few unpleasant experiences so they know what to avoid. A simple return policy and a straightforward process will be easier for you to implement and will make shopping more pleasant for your customers so it is a win-win situation.

The return policy is a very important aspect of your online business because it can either attract customers or deter them. Most people know what they want when it comes to return options and they are more likely to avoid an eCommerce website if they think the return process is burdensome. In conclusion, your return policy should balance the needs of your customers and your financial interest and it should be a simple and transparent process.

Modestas Mankus
Modestas Mankushttps://talks.co.uk/
Modestas has over 7 years of experience in marketing with in-depth knowledge of the eCommerce world. He founded Our Culture Mag, one of the leading arts and culture magazines and is a fellow at the Royal Society of Arts.

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