When you are creating an eCommerce store, a return policy will play an important role. Without a return policy, customers won’t trust your website. Further, all eCommerce websites that sell online must have a return policy or an exchange policy, or a cancellation policy in case any customer decides to return or cancel the goods purchased. To refund literally means to pay a customer back who is not satisfied with the goods or services purchased online.
Return means whenever a customer receives a bad or damaged product, they can return the product. A return policy is the description and details on how you will issue a refund or exchange the product in case of any damage during the shipping or faulty product. Here, you can offer many things, you can either issue a refund or you can replace/exchange the product. All the things should be stated in your refund policy.
Every web store needs a refund policy. Here are some of the reasons why it’s needed.
Return policy can impact the business in both ways.
On the positive side, customers will trust your store and you will create a brand around your name. If a customer gets a faulty product, they can return it. This will encourage them to shop again as there will be no issue in case of the damaged product.
On the negative side, you will face some loss if the product was damaged during the shipping. There will be a few fake refunds that you will have to be careful of. This is a common issue in online shopping. Returns increase during sales or festive periods.
First, you will have to decide how you want to process your refunds. You can either offer exchange or you can directly issue a refund. Write the main summary at first on how you will process the refunds.
Thereafter, you will have to create a list of products if the return for those products is different. Decide the time interval of refunds and then write all the terms and conditions for the refund.
Some people might think refunds will be a loss for the seller. However, that’s not true. If someone ordered a product and it was damaged, they can easily return the product. As a seller, you will incur a loss on that product. On the other hand, if you don’t have any store policy, you will keep the money from that product/sale but the customer won’t order again from your store. In this way, you will lose a lot of money, and the average CLV (Customer Lifetime Value) will decrease.
Even if you don’t provide any refunds or exchanges for your online shopping store, you can be transparent about it by clearly writing it down.
Nowadays many good eCommerce platforms like MoreCustomersApp provide convenient features in Admin Panel to write return policies and also show them in the Link in the footer of your website. Admin of Online Store can easily modify as and when needed without any technical help.
To summarize, these are the reasons why a return policy is extremely important for your online shopping store. If you don’t have one, you should create it now.