return policy for small business

Return Policy

• Returns. All returns must be postmarked within thirty-one (31) days of the purchase date. ...
• Return Process. Small Biz, Inc. ...
• Refunds. After we receive your returned item and inspect its condition, we will process your refund or exchange.
• Restrictions. Undergarments and digital purchases cannot be returned. ...
• Questions. ...

Full Answer

How long should small business keep sales receipts?

You should keep receipts for as long as a taxing authority like the IRS or your state’s department of revenue can audit you.

What stores have the best return policy?

These six retailers are known for having best-in-class return policies:

• Costco
• Nordstrom
• L.L. Bean
• Zappos
• Target
• M.S. Rau

How to calculate small business profit return?

How to Calculate ROI For a Small Business. Return on investment (ROI) is a financial concept that measures the profitability of an investment. There are several methods to determine ROI, but the most common is to divide net profit by total assets. For instance, if your net profit is $50,000, and your total assets are $200,000, your ROI would be ...

Can a small business get a refund?

Since it's a refundable credit, small businesses can get a cash refund if their available credit exceeds the amount of employment taxes the business owes. To claim the credit, small businesses can reduce their employment tax deposits. Small employers can even get an advance on the credit by filing Form 7200.

How do you write a return policy for a small business?

How do I make a return policy?Create a return policy that builds trust with customers.Be clear and concise when writing your return policy.Don't demand things from your customers.Make your return policy easy to find and access on your website.Make sure your teams know your return and refund policy.More items...•

Can a business have a no refund policy?

United States. While there are no federal refund laws in the US, many state laws don't legally require refunds, instead allowing businesses to set their own refund policy. In some states, not conspicuously displaying a no refund policy means customers are entitled to refunds.

What is a good return policy?

It's important to let your customers know how long they have to return a product. Generally speaking, 15-30 days is standard, although some businesses opt for 90 days. Either way, you won't be doing yourself any favors by accepting returns beyond that time.

What is a fair return policy?

At Fair Game, we strive to make our service to you the top priority. Unopened merchandise may be returned or exchanged with 30 days with valid proof of purchase.

Is it illegal not to offer refunds?

A business can refuse to give you a free repair, replacement or refund if: you simply changed your mind. you misused the product or service in a way that contributed to the problem.

How do you deny a refund to a customer?

Start With A Sincere Apology'We are extremely sorry and regret to inform you that we have to decline your request for a refund for your purchase of product X''This is to inform you we cannot refund your money for your purchase of X'

What is 30 day return policy?

For example, the 30 days could mean that you have to exchange the purchase within 30 days of purchasing the items. It could also mean that you have 30 days to use a promotion or discount within the store.

How important is a return policy?

A concise and clear return policy gives consumers a feeling of security; that what they are buying is guaranteed to be what it is represented to be. If a retailer doesn't give this guarantee, then consumers often become suspicious and avoid buying the product.

How do you respond to a customer asking for refund?

Acknowledge their request, show some empathy, provide a concise explanation on why you cannot issue a refund (whether it's old warranties, missing the refund deadline, the condition of the returned product, etc.), and offer an alternative solution, if possible.

Is wardrobing illegal?

While not strictly illegal, the act of wardrobing is considered by retailers to be fraudulent and is on the rise. According to the National Retail Federation, “fraudulent” and “abuse” returns in the U.S. alone reached $24 billion last year.

How do you handle customer returns?

3 Tips to Make the Most of Your Returns in Retail and Convert More SalesKeep Your Losses As Low As Possible. Minimize your losses with return stipulations. ... Record of All Returns, Exchanges, Refunds in Retail. ... Make Sure You're Always Providing Excellent Customer Service.

What retailer has best return policy?

Stores With Best Return Policies These six retailers are known for having best-in-class return policies: Costco. Nordstrom. L.L. Bean.

Does Walmart have a good return policy?

Walmart's return policy is one of the simplest. The vast majority of the products it sells, other than electronics, can be returned within 90 days. In most cases, customers will get a full refund. Even on the grocery side, Walmart offers a 90-day return on nonperishable items.

How long does a consumer have to return goods?

between 28-30 daysIf a retailer does have a returns policy, then you'll usually have between 28-30 days to return an item and get a refund or exchange. Often, shops will extend this period immediately after Christmas, so you do have a few weeks to make up your mind whether you really do like that scarf or not.

Where do I put a return policy on my website?

In addition to physically posting your return policy inside your brick-and-mortar store, it’s important for it to appear on your small business’ we...

What should I avoid in my return policy?

Your return policy should be easy for the average customer to understand. Avoid industry jargon and complex language that might cause your customer...

Should I offer store credit in my return policy?

It’s a great idea to offer store credit in your return policy for a variety of reasons. By offering store credit, you have more flexibility to rece...

Who pays the shipping costs to return a product?

Who pays the shipping costs to return a product? The answer is the discretion of the store, but most companies only pay for shipping costs to retur...

How long can you return Costco items?

If you’re a Costco customer, you can return most items you’ve purchased, so long as it’s within a 90-day period. It’s a generous policy. But sometimes it backfires.

How long does Amazon have to return items?

A sampling of return policies from major retailers proves this: Amazon, for example, has a 30-day period where customers can return their items, no questions asked. Amazon merchants, however, are free to determine their own return policies. Home Depot, Walmart, and Target all give 90 days.

What are the advantages of running a small business?

One of the biggest advantages of running a small business is that you don’t have to be so hard and fast with the rules as the big-box retailers do. You’re not subject to public scrutiny and Wall Street. You have the benefit of being able to tell your customers that “reasonable returns are accepted” and leave it there.

What happens when an actual return occurs?

When an actual return occurs, it’s charged against the already-established reserve. By keeping a consistent reserve, you avoid potentially significant fluctuations that may occur if for one reporting period there are higher (or lower) returns than usual.

Is a return a loss?

Unfortunately, it’s not just eating the cost of the product. A return requires extra time spent by your employees to handle the transaction, and sometimes it costs you an unhappy customer. A return is a loss, all around.

What is a Return and Refund Policy?

What is a return and refund policy? A return and refund policy outlines the conditions under which customers can return or exchange items they have purchased. If you are looking at how to create a return policy, here are some of the basics it should include.

Why Your Business Needs a Return Policy

Why does your business need a return policy? A return policy can save business owners, their employees and their customers (both traditional clientele and online shoppers) plenty of headaches by defining when and how items can be returned or exchanged. A return policy benefits a small business in the following ways:

What to Include in a Return Policy

What should a small business include in its return policy? The precise formula will vary by store, and whether or not the merchant has eCommerce stores or a brick-and-mortar location. When creating a return policy, be sure to answer the following questions:

Return Policy Examples from Big Brands

An effective return policy will inform customers what to expect if they need to exchange merchandise or if the stores offer refunds. The following big brands’ return and refund policies set adequate expectations, which increases customer loyalty. Take a look at these return policy examples from big brands:

Store Return Policy Examples

While every online business and big brand has its own return policy, it’s important for stores to also have their own policies, which can be posted in the store and on its website. The following are examples of return policies for brick-and-mortar stores, posted to the retailers’ websites:

Small Business Return Policy Examples

Small businesses, too, create and post return policies to inspire trust within potential customers and loyalty from existing clientele. The following small businesses have posted effective return policies to their websites:

Store Credit Return Policy Example

Some businesses are known for their outstanding return policies, a feat which inspires customer loyalty and attracts shoppers who know the store will stand by its products. Retailers can add additional flexibility to their return policies by offering store credit.

What is return policy?

A store's return policy is part of customers' buying decisions and customers may decide to shop elsewhere if yours doesn't measure up. Ninety percent of adult U.S. shoppers said that a convenient returns policy was important when deciding to make a purchase according to a Newgistics poll.

How to speed up business return?

Having a clear small business return policy is the cornerstone of speeding up the return process. Your staff doesn't have to make decisions when handling returns; they just apply the policy. Keep the paperwork simple too and be sure your staff is trained to use whatever computer program your business uses and to fill out a form (if required). Also, avoid extras. When someone is making a return is not the time to try and collect customer data extraneous to the transaction or to ask if the customer would like to be part of your rewards program.

Do people return things?

Store returns are a fact of retail life. No matter what you sell, people will want to return things. Make the return process straightforward and simple and turn it into a pleasant transaction rather than an unpleasant chore and you will not only keep customers but encourage them to spread positive word-of-mouth about your business - a truly positive bottom line.

Does a return policy cost money?

Yes, a return policy like this can cost you money, especially when customers have paid for their purchases with credit cards and you get stuck with the merchant account processing fee. But bear in mind three things when you're thinking about your small business's return policy: This is a worthwhile expense when you consider ...

Is it rude to return a store?

People are not normally cheerful when they're making store returns. They may even be rude, obnoxious and foul-mouthed. It's imperative that staff be trained not to respond in kind and remain calm and friendly throughout the return process. This kind of demeanor can calm an angry person and will certainly help achieve the goal of making the store return process as pleasant as possible.

Do you have to have a full refund policy?

You don't have to have a full refund return policy across the board. Having exceptions is fine, as long as your exceptions are published and fairly applied. It's common, for instance, for sale merchandise to be sold under a 'no return' policy.

What is a Return Policy?

Return and exchange policies are rules established by a small business to handle the process of how customers return or exchange unwanted goods. It’s an arrangement between the buyer and seller to determine what options are available and what steps need to be taken if the buyer is not satisfied with their purchase.

Why Do Companies Have Refund Policies?

Like all policies, a return and refund policy keeps your business running smoothly. Return policies may seem like an unnecessary headache but they are a crucial part of building customer loyalty.

Return Policies for E-Commerce

One way to stay competitive in an online retail environment is through a good return policy. As an online store, it’s especially important to offer a return policy, since your customers can’t physically see or touch the items they are purchasing. A tool that will help eCommerce stores with this process is a return merchandising system (RMA).

What to Include in Your Return and Refund Policy

The information on your standard return policy needs to give the buyer clear outlines for what will and will not be accepted. That way they avoid any unexpected surprises and an unhappy customer should they. Therefore, such business policies should include the following things to make returns and refunds as painless as possible.

Return Policy Template

If you need some help to create a return policy, consider downloading and using this free template. It outlines the basics of what should be included in a return and refund policy. Just fill in each section with your specific information.

Where To Post Your Policy

The return policy should be stated on the back and or front of the receipt. This way the customer can have a copy of it on hand if needed. The policy should also be placed in the physical store near the cash register so customers can see it before they purchase the item.

Tips For Writing Your Return and Exchange Policy

A refund or exchange policy may seem easy enough to write but there are a few key elements you need to keep in mind. If you implement these tips, your in-store or ecommerce return policy can save you some headaches down the road.

What is a return policy?

Return policies are the rules a retailer creates to manage how customers return and exchange unwanted merchandise they purchased. A return policy tells customers what items can be returned and for what reasons, and the timeframe over which returns are accepted.

Why do we need a return and exchange policy?

Just like having a formal return and exchange policy will help eliminate some of the hours spent on customer service, using the right services for processing returns and exchanges will save you both time and money on the shipping and fulfillment and operations sides.

What is the difference between returns and exchanges?

When a customer returns a product for a refund, the business usually loses money on the customer acquisition and return shipping costs, plus it needs to refund the customer any profit made on the original order.

How to encourage exchanges over returns?

A common way to encourage exchanges over returns is by only offering to cover the cost of return shipping if the customer chooses to exchange the product. When presented with the three options above, the choice to get a store credit or new product may be more appealing to those who have not fully sworn off your brand.

What does it mean to return something in ecommerce?

In ecommerce, the customer usually decides independently if they want a return (which signifies a refund ) or an exchange (usually for a gift card or a replacement product of equal value).

What is upsell in ecommerce?

Upsell or cross-sell on exchange requests. One ecommerce returns best practice is to upsell or cross-sell on exchange requests. Although exchanges are usually more profitable than returns, their profitability can be narrow depending on the product and its margins.

What is returnly app?

Returnly is one of the larger self-service returns providers for ecommerce stores. The app provides online stores with their own customizable “Returns Center,” which customers can sign into using their order number or email address to access their past purchases and select items they wish to return.

What is a small business loan return policy?

Small business Loans return policy is a set of rules that make customers know what they should do if they want to return or change the product. According to estimate, 9% of purchased products and 30% of online products are returned solely in America. The return policy determines how much worth your product have in the market. Having a small business loan return policy is necessary before you sell your products. Having no return policy may lead to a frustrated customer.

How long to return a product?

So mention it on the product or receipt. This detail will help make sure that you don’t receive outdated or ended wares. For example, you would only accept products within seven, 14, 30, 60, days. Beside this, a return cannot be accepted. But, make positive clients understand your rules. Let’s say you have a large store where you sell clothes as well as candy and popcorn. Your return policy is 2 days for clothes and seven days for edibles.

What is a receipt for a business?

A receipt is a truth of your bought products, prices, date and other information about your business.

What is a good place to include a return policy?

Receipts and shipping invoices are also a good place to include your return policy. If a customer has your product in-hand when deciding to initiate a return, they'll likely reference the record of their transaction for more information and next steps.

How long does it take to return a product after purchase?

Most companies mention a cap on how many days after purchase a customer can make a return. This could be 7, 14, 30, 60, 90, or even 120 days. Consider the type of product before setting your cap. If you sell one type of product, placing one cap will likely suffice.

How long does it take to get a refund from Amazon?

It states buyers will receive a full refund for most items returned within 30 days (if those items are fulfilled by Amazon). For products fulfilled by third-party sellers, the return policy may only vary slightly. Etsy sellers, on the other hand, are allowed to set their own Etsy shop return policy.

How to stop returns before they happen?

To stop returns before they happen, opt for multiple high-resolution photos of your item, videos showing how the products work, sizing charts (if applicable), etc. to minimize the chances of receiving returns. Check out more product page marketing tips.

Is profit loss inevitable?

While some profit loss will be inevitable, there are ways retail small business owners can ensure the return process is seamless for both them and their customers. Continuing reading for some things to keep in mind as a small, product-based business.

Do you need a receipt for a return?

Another thing to consider for your return policy is whether or not a receipt will be necessary when a customer is making a return. You may want to accept other forms of proof of purchase, like a phone number or email address if they were provided at the time of purchase.

Is profit loss inevitable when accepting returns?

Some profit loss is inevitable when accepting retail returns but these tips can help you keep it under control. Plus, offering a fair return policy is essential to good customer service and continued sales. Check out more business and labeling tips.

Which stores have a good return policy?

Nordstrom. Nordstrom has a good return policy with an exception of a "case by case" basis which is rather vague. There are no time limits on exchanges, and purchases and goods without receipts can be returned fairly easily. 10. Zappos. With Zappos, you have a whole year to return an unused product.

What is a return and refund policy?

Return and refund policy should typically address the following few points: Clearly state if returns, exchanges, and refunds are accepted by a company. The number of days customers have to return or exchange a product. List any products that may be exempt from returns.

What does it mean when a company has a money back guarantee?

When you have a money-back guarantee policy you will appear like a trustworthy company in the eyes of your prospects and customers. Since you are willing to give them back their money if they are unhappy with the service or the product, that means that your product/service works well and your company stands behind it.

Why do you have a money back guarantee?

If you have a money-back guarantee policy on display on every product page and checkout page, you will increase your sales and generate more revenue. Besides removing barriers to purchase, a money-back guarantee can also differentiate your business from the competition and put you in that sweet spot in your niche.

Why is it important to operate within the legal boundaries of a business?

When your business operates in the digital ecosystem, it is very important to operate within the legal boundaries to avoid any potential issues. And if you’re involved in the e-commerce business, whether it’s an online store, digital software, or a SaaS, a couple of the most basic legal aspects you must address are handing return ...

Does a clear return and refund policy sell better?

More often than not, the response you have to this question will determine if they buy from you or not. Statistics have shown that when a product has a clear and buyer-centric return and refund policy, it will sell better than similar options that have no such policy.

Is no refund policy bad?

A “ no refunds policy ” is generally a bad idea if you do any business, especially if it’s online. Here are the main reasons to consider when you are thinking about whether you should have a “no refunds” policy: You will most likely lose a customer.

Creating A Return Policy

• Knowing how to write a return policy is an important part of being a small business owner. You need to know what information to include so the return process is easier for you, your employees, and your customers. Establishing a clear return policy can also help protect your business from …

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