With 25% of sales now happening online and consumers spending more time on the web than ever before, the growth of online shopping is great news for your ecommerce business.

But the ‘buy, try, return’ culture amongst online shoppers means that one in three orders will be returned. What does that mean for your return and refund policy?

 

What Are Return and Refund Policies?

A return and refund policy sets out the guidelines for customers who want to return their purchase for a refund or exchange.

A standard return policy will explain the following:

• Acceptable timeframe for refunds
• The condition the product should be returned in
• How a refund will be issued

 

Benefits of a Return Policy

Far from being something that will encourage your customers to send their purchases back to you, a well-written return and refund policy can help you reduce your return rate and boost customer confidence.

Research has shown that:

• 67% of customers will check your returns page before they make a purchase
• 92% of customers will buy again if your return process is easy
• 58% of customers want a hassle-free return and refund policy

By setting out your return policy clearly on your website, you can reassure your customers that they can return an item if it doesn’t meet their expectations.

A good return policy will:

• Simplify the returns process and make it easy to understand
• Avoid misunderstandings
• Encourage repeat orders by elevating customer experience, leading to positive reviews and customer loyalty
• Reduce customer uncertainty which can lead to basket abandonment
• Avoid return disputes by setting clear expectations

 

How to Write a Return and Refund Policy

Let’s look at how you can write a standard return policy for small business in 6 easy steps.

 

1. Use Clear and Simple Language

Making your return policy easy to understand is key to its success. These are our top tips for writing a policy that will help your customers give you a five-star rating:

• Avoid jargon: keep complicated terminology to a minimum and make sure you explain your return policy in simple terms.
• Be friendly: a conversational but professional tone is best.
• Bullet points: make your policy easy to read by breaking the important points into bullets and attention-grabbing headings. Don’t hide the info away.

 

2. Define the Time Limit for Accepting Returns

Defining a time limit for your returns is an important step for your policy. For example, Apple have a 14-day return policy, whereas IKEA have a 365-day policy.

Most retailers have a 30-day return policy which allows plenty of time for your customer to receive their items and decide whether they’re suitable or not.

When deciding on the right time limit for your business, you’ll also need to consider the distance selling regulations which allow customer’s the right to cancel an order up to 14 days following delivery.

 

3. Outline the Conditions Required for Return Eligibility

Don’t leave your customers guessing about which products they can return and which they can’t.

If there are items that you won’t accept for returns, make this very clear in your policy.

Products that are not normally returnable include:

• Perishable items
• Hygiene-sensitive items
• Items that have been custom made
• Digital downloads

If you want your customers to return products in a certain way, you’ll need to list these requirements to eliminate misunderstanding. For example, let them know if items need to be in their original packaging, if the receipt needs to be included, or if the packaging needs to be unopened to be accepted.

 

4. Steps for Customers to Initiate a Return

How does your customer start the return process?

For many, this can be the most frustrating point of sending something back. Make your information easy to find and the instructions simple to follow. Do they need to request a return on your website before they send the item back, or do they simply fill in a return slip and post it back to you?

Set up a returns page on your website with clear details on how your customers can initiate a return and what information they will need. You can also use this page to let them know what will happen during the refund process and how long it will take for them to receive their refund.

 

5. Refund Options: Credit or Original Payment Method?

The return of an item doesn’t have to mean the end of the relationship with your customer.

Think about why they might be returning their purchases and consider offering them an exchange instead of a refund. This can be a great idea for clothing where a different size might be required.

UK Consumer Rights state you must refund your customer must using their original payment method unless they agree otherwise. This doesn’t mean you can't offer gift vouchers but check your rights if you want to present this as the only option for a refund.

When you accept items for refund, you’ll want to make sure they’re processed quickly and that customers don’t have to wait over 5 days for their refund.

 

6. Mention Any Fees That May Apply to Returns

You mustn't charge any fees in relation to processing a refund in the UK.

Where to display a return and refund policy?

Once you’ve written a brilliant return and refund policy and built your landing page, you’ll need to make sure your customers can find it!

Consider placing a link in your footer navigation, on your product pages, in your FAQ section, and on your order confirmation emails. You could also add a printed return slip with your orders.

Standard Return Policy Template

If you’re looking for some inspiration, you could browse your competitors return policy pages

You can find standard return policy templates on the web to give you something to work with. Shopify have a refund policy generator which can be a good start.

 

Streamline Returns with Parcel2Go

One big question when it comes to returns is who will pay for the return postage?

More and more retailers are moving away from free returns and asking their customers to pay to send their unwanted items back. That’s where Parcel2Go can help!

We can help your customers return a parcel from just £1.99 exc VAT.

By allowing them to arrange their return themselves through Parcel2Go, they’ll have access to a range of top couriers with the backing of our Lowest Price Guarantee. They can also choose from pick up services or drop off locations to make the return process even more convenient.

Your customers will even be able to keep track of their return with our parcel tracking, letting them know when it’s arrived for extra peace of mind.

Get a quote to see how much your customers can save by returning a parcel with Parcel2Go today.