For example, edibles can be returned within 7 days, electronics within 30, and furniture within 90 days, etc. Having a return policy is an integral part of small business operations.
Full Answer
What should be included in a return policy for small businesses?
Though there is no standard return policy for small business, you should include information on the following. First, your policy should mention whether or not the customer needs receipts to make returns or exchanges. You should give your customers a receipt whenever they purchase from you.
What are some examples of big brands' return policies?
Take a look at these return policy examples from big brands: 1. Amazon Amazon has an extensive return policy, including specific standards for processing returns during the holiday season. You can see the entire policy here. 2. Nordstrom
What is a return policy and how to create one?
In today’s global marketplace, return policies are agreements that any business — big, small, online, or otherwise — can’t afford to go without. Download our return policy template and fill in your business’s refund policy information to create a customer-friendly policy.
How do I incorporate a receipt into my small business return policy?
There are a few ways you can incorporate a receipt into your small business return policy: 1 No returns without receipts 2 No exchanges without receipts 3 Returns without receipts are accepted 4 Exchanges without receipts are accepted 5 Returns without receipts will result in store credit
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...•
How do I write a return policy?
How to write a return policyThe number of days or deadline to return the product.The type of refund they will receive (store credit, exchange, full refund).The information they need to bring in-store or send online for the refund (receipts, credit card, etc).Conditions the product must be in to be valid for return.More items...•
What's a good return policy?
The best return policies are those that have a long window for refunds, don't necessarily require a receipt and provide multiple options for returning online purchases.
How do I write a no return policy?
Use Plain Language. When it comes to wording your no refund policy, keep it as simple and straightforward as possible. Avoid legalese and forceful language such as “you must” or “you need to.” Make the refund process easy to understand for your customers.
How long should a return policy be?
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 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.
Should a company be required to take returns?
Customer Returns and Refunds Under Federal Law While many retailers have decided this makes for the best business practice, they aren't legally required to accept returns. Rather, retailers are required to accept returns only if the sold good is defective or if they otherwise break the sales contract.
Who has a 90 day return policy?
Walmart: 90 Days to Return, Online Or In Stores Most items can be returned or exchanged within 90 days of purchase.
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.
Is it illegal to not give a refund?
A business cannot have a 'No Refund' policy. It's against the law to say you will not provide a refund under any circumstances. This includes sales, gift items and even secondhand goods.
How do you tell a customer no refund example?
I am really sorry to inform you that we can't exchange the product or refund it. After a careful investigation, we've come up to the conclusion that it was damaged while being used. I understand that you might be sad about this situation, but it seems to me that your chair is still fixable.
How do you deal with a customer asking for refund?
What Should You Do If a Customer Requests a Refund?Step 1: Handle the Matter Quickly. ... Step 2: Investigate the Facts Thoroughly. ... Step 3: Consult Your Refund Policy. ... Step 4: Look for a Non-Refund Remedy. ... Step 5: Make a Reasonable Decision. ... Step 6: Follow Up With Your Decision and Clear Steps. ... Step 7: Ask for Some Feedback.More items...•
What do you say when returning an item?
Smile and say, "Hi, I want to return this item which I bought last week." Show the clerk the item and your receipt. Don't delay returning the item. Some stores allow returns but only for a certain amount of time. For example, many stores only allow returns within 14 days of the purchase.
Is a refund policy legally binding?
Refund Policies are, essentially, legally enforceable contractual terms between you and the customer. However, like any contract, these terms are only enforceable if they are: Clearly set out. Agreed to by the customer.
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.
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...
Why do businesses require identification when returning products?
Some businesses choose to require identification when customers return products. This lets you identify which customers repeatedly return items in your point of sale (POS) system. Having identification can also help you verify the customer and prevent theft.
Why do businesses have a return policy?
Here are five reasons for returns: Having a small business return policy is necessary before you begin selling products. If you have a customer who wants to return a good and you don’t have a policy, you could have a frustrated customer and confused workforce. Avoid inconsistencies by writing down your return policy.
How long do you have to return a movie?
But, make sure customers understand your rules. Let’s say you sell movies as well as candy and popcorn. Your return policy is 30 days for movies and seven days for edibles.
How much money did businesses lose in 2015?
One estimate from the National Retail Federation’s 2015 Return Fraud Survey found that businesses across the nation lost $260.5 billion in returns. Of that number, 6.1% were return frauds, meaning U.S. businesses lost $15.9 billion in return fraud.
Why is it important to write a return policy?
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 return fraud.
Do you need a receipt for a return?
Receipt. First, your policy should mention whether or not the customer needs receipts to make returns or exchanges. You should give your customers a receipt whenever they purchase from you. A receipt is proof of purchase for customers because they list the products bought, prices, and your business information.
Is selling a product to a customer and collecting money the end of the sales process?
Selling a product to a customer and collecting money isn’t the end of the sales process. You also need to prepare in case customers return goods. To prevent confusion and frustration, you need to have a clear small business return policy in place.
What is a shippo?
Shippo is a multi-carrier API and web app that helps retailers, marketplaces and platforms connect to a global network of carriers. Businesses use Shippo to get real-time rates, print labels, automate international paperwork, track packages and facilitate returns.
What is customer friendly return policy?
With a customer-friendly returns policy, you’re well on your way to attracting the 95 percent of customers that will make another purchase if the return experience is positive.
What is Luckyleo Dancewear?
Luckyleo Dancewear sells handcrafted, high-quality leotards, bodysuits, shorts, and tights custom-made for ballet, lyrical, competition solos, and aerial skills.
Is Bean Box a return policy?
Food companies have an added challenge when it comes to creating a return policy, since oftentimes there is no longer a product to return. Bean Box is a subscription service that partners with Seattle’s top independent coffee roasters to curate and deliver high-quality, freshly-roasted coffee to customers.
Does Function of Beauty give free refunds?
Function of Beauty offers a “Happy Hair Guarantee”, which will give free refunds within 30 days of when the order was shipped. They use their discretion with returns and reserve the right to refuse a refund. See Function of Beauty’s full policy here.
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.
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.
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.
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.
Do we live in a perfect world?
We do not live in a perfect world. We live in a world constructed by humans, so by definition there will be errors, mistakes, and poor decisions. Products will be defective. Customers will make the wrong choices. Things won’t work as promised. People will make up reasons why they don’t like a product.
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 exchange policy?
Exchange policies are simply a specific form of refund policy. As mentioned earlier, refunds can include replacement goods or goods of similar value. If you offer one or both of these options, you should have a dedicated exchange section or exchange policy to detail your guidelines for trading in products.
What does "refund policy" mean?
Refund policy — If you do allow refunds, indicate the conditions and time limitations of the refund process, how customers can get their refunds, and what type (s) of refund (s) you offer, including: Lastly, state how long it will take for a customer to receive their money back or a replacement product.
Do ecommerce companies have to factor shipping costs into returns?
Ecommerce return policies can be especially tricky to navigate. Not only do ecommerce entrepreneurs need to factor shipping costs into their returns and refunds, but studies show that online consumers place a particular value on the online shopping returns experience.
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.
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 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 Shopify's research team?
Shopify’s research team conducted a series of in-depth interviews with North American shoppers to learn how customer trust is formed in online stores. This checklist is a summary of their findings, created to help business owners understand what essential aspects of their online store experience creates trust among customers, along with the trust-busting mistakes to avoid.
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 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 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.
Can you refund a digital purchase?
If you allow your customers to get refunds on digital purchases, you have to clearly specify which ones. In case return/refund policies are different for specific products, you will have to specify each one separately. Sometimes businesses that sell digital products online offer refunds only in certain situations.
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.
What is a small business policy template?
A basic small business policy template can give you the ability to develop a document layout that is highly-usable and effective. May it be a privacy policy template or any other business policies that you would like to have, using templates can surely be advantageous and beneficial on your part. 2.
Do policy templates have a title?
To brand the document and make it identifiable for all your stakeholders, your policy templates in Word must have a title or subject line. Be specific when thinking of the title of the small business policy so you will not mislead your employees and other entities with regards the content and purpose of the policy document.
Do you have to add other information to a policy document?
If there are things in the policy document body of discussion that you still need to clarify or further elaborate, always feel free to add other relevant information. The details of your small business policy must be understandable and timely which is why you have the responsibility to add as many important information as you want until the document is already clear and easy to understand.
Do small business policies need to be dated?
This can provide the message or statement with regards the effective implementation of the policy content. If you would like to, you can also present the dates when the policy has been suggested, reviewed, and/or approved.
Is it wrong to be guided by references?
There is nothing wrong with being guided by references during the development process of your small business policy. It is important for you to always be keen on how you will develop a small business policy format and layout.
How to edit a template?
How to edit this template for your business: 1. Click File → 2. Click Add to My Drive. If you don’t have a Google account, follow these steps: 1. Click File → 2. Click Download as… → 3. Choose a format.
How long do you have to return an item?
You have 30 (change this) calendar days to return an item from the date you received it. To be eligible for a return, your item must be unused and in the same condition that you received it. Your item must be in the original packaging. Your item needs to have the receipt or proof of purchase.
Is shipping cost refundable?
You will be responsible for paying for your own shipping costs for returning your item. Shipping costs are nonrefundable. If you receive a refund, the cost of return shipping will be deducted from your refund. For additional information in this section, create your own Return & Refund Policy.
What Is A Small Business Return Policy?
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 return fraud. Some people look for returns as opportunities to make money. One estimate from t…
Small Business Return Policy Tips
- Even if you have a small business return policy, there are some issues that can come up. To help returns go smoothly, try the following. Be consistentwith your policy. Make sure you give customers the same treatment, accept the same products, and don’t change up the rules without letting customers know. Post your policy in clear view of customers and employees. It’s a good i…
Service Refund Policy vs. Product Return Policy
- Handling product returns isn’t so bad once you create your policy. But, how do you handle service refunds? You can’t take back a service, the time you spent performing it, or (sometimes) the materials used to complete the service. Take for instance a business that landscapes yards. The business spends four hours mowing the lawn, planting flowers and trees, and mulching. After al…