Returns and refunds appear to be something that businesses should deliberately avoid since they must imply a loss of income and consumer loyalty, right? Wrong. According to research, having a flexible, client returns policy wherein returns are nearly welcomed makes a significant contribution toward creating brand loyalty and improving consumer value over time. Let's examine in greater detail what the study says regarding returns policies & how you can update yours to boost your consumers' long-term value.

Before making a purchase, 66% of internet shoppers will go over a company's return & refund policy. 81% of those shoppers will only click the 'Buy Now icon/button if the brand provides free returns.


Customers are seeking return policies that offer speedy processing, a return postage label irrespective of whether or not a return is made, a no-questions-asked attitude in addition to complimentary returns. Those are fairly persuasive data, indicating that consumers anticipate a more forgiving, simple, & cost-effective approach to canceling any transactions they make.

According to a Journal of Marketing research, firms with a free & simple returns policy enjoy a staggering 457% rise in consumer spending after a free, no-hassle return. Similarly, there was a 75-100% fall in spending after having to pay for the return shipment.

Regrettably, internet shops are significantly more sensitive to returns than their physical counterparts. This occurs for a variety of circumstances, along with a discrepancy in descriptions, quality, or size with the actual product; undesired presents; transit damage; and erroneous things shipped. A comprehensive and quite well-written returns policy is vital if a company wants to boost client retention and grow revenue.


What is the meaning of a return policy?

Return policies are rules established by a store to control how consumers return and exchange unwanted merchandise. Customers may learn what items can be returned & for which reason in a return policy, as well as the time frame for which returns are accepted.

The impact of the return policy on new consumers

Firstly, it is critical to understand how the return policy influences new clients. Unlike physical businesses, eCommerce stores do not allow shoppers to physically see the items before purchasing them. As a result, new clients are often concerned about purchasing faulty goods. Then, before purchasing, they will get confidence by reviewing the return policy.

It is critical to explain terminology in your returns policy, just as it is in other policies. Make certain that your return policy is obvious to your consumers. They will be more confident in acquiring your stuff as a result. A transparent return policy can help new clients develop trust. A new consumer will choose a shop with a transparent return policy over one that does not. As a result, having a return policy significantly enhances your sales.


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How return policy impacts customers who bought your products but wish to return them

Secondly, from the standpoint of customers who bought your products but wish to return them, your return procedure is part of the customer experience. A consumer is unlikely to return if the return process is overly complicated. They will instead be disappointed with your brand. As a consequence, the vast majority of them will not return to your store. That is a significant loss. Furthermore, these clients can discuss their negative experiences with their family and friends. As a result, you may lose many prospective consumers without realizing it.


Make your return policy available to customers

Because many individuals undertake pre-purchase research, ensure your return policy is accessible to customers. Many online retailers conceal their return policy under a slew of terms that are only reached through a hyperlink in the site's footer. Nevertheless, because internet clients desire to save time, this may irritate them. As a result, you may include a refund policy on your website's homepage, item pages, during payment, and within the purchase confirmation e-mail.

Customers connect with shop owners primarily through their home sites. As a result, you should include a link to their return policy. Shoppers will typically locate your return policy at the bottom of the homepage layouts.

Never, ever copy & paste.

Because each shop is unique, you should not duplicate the refund policy through others. You must therefore be doing it yourself. Developing a specific return policy will reduce losses. It also boosts your brand in the thoughts of your clients.

Use simple and common wording.

A return policy's objective is to engage with consumers about returning concerns. As a result, you must use simple English to guarantee that your clients comprehend all of the phrases. Customers will be able to purchase your items without fear. A return policy should be written in a welcoming tone. It implies that you should avoid using a domineering tone while interacting with consumers.

Try automating returns

Amazon, Target, Walmart, & Zappos have established the gold benchmark for e-commerce returns by keeping them simple, quick, or automatic. You may also streamline your policy by creating a returns procedure on your website. This will attract a great number of customers who desire a simple process for returning things and a simple way to create that return mailing label.

Make exchanges simple

Although returns are inescapable, you may retain more sales by converting refunds to exchanges. The idea is to make replacements as simple as feasible to execute to maximize the probability of your customers not just requesting a refund. Online transactions should ideally be completed with as few taps as feasible. In addition, with the correct software, you might even enable customers to switch to a different size with a single click!

For instance, if a customer returns a pair of sneakers online & picks "Too Little" as the reason for the return, your software may quickly recommend a larger size accessible as an interchange alternative. In this manner, you not only preserve the transaction, but the customers receive whatever they genuinely want without any fuss.

Provide box-free returns drop-offs

It is said that the majority of consumers consider returns as the most difficult aspect of shopping online. Consider how helpful it'd be if you might resolve this issue for them by eliminating the difficulty and delay of sending by mail. Many companies offer numerous delivery alternatives to customers when they check out, such as paying extra for fast shipment. The similar holds for returns, as customers desire options & influence over the procedure.

By providing box-free, in-person returns drop to a 3rd network, you may delight customers with the simplicity of buying internet, and returning to the store. No one likes to cope with the dreadful art and design task of generating labels, duct-taping boxes, or standing in the post office line to return products through the mail. Alternatively, consumers may begin online and be given a QR code as well as directions to the number of drop-off locations across the country.

Amazon recognizes the value of reducing this barrier from the online buyer trip & provides a variety of box-free drop-off choices, ranging from Kohl's to The whole Harvest to a UPS Store. Amazon is teaching customers to anticipate this quality of care for all returns, so shops must equal this comfort level.


Offer free returns

Avoid charging the consumer for return postage if at all feasible. Giving out free returns may boost a consumer's trust in your organization as it demonstrates your dedication to customer care. Even if the consumer was dissatisfied with the goods, the convenience with which it could be returned will gain their confidence in the future. Increase your dedication to the client experience by providing a postage costs label with the initial order or by introducing a one-click return option on any e-commerce site that creates a return label for the consumer to print.

Inquire as to why the consumer is returning the merchandise. It is critical to determine why consumers are exchanging or returning your merchandise to effectively promote your products. For example, suppose your firm is getting a lot of returns on a new outfit. By polling consumers, you may discover that the majority of customers return because the fitting is too big. Having this knowledge, you may include a remark on your website that the dress does not fit exactly as it should & runs 1 size bigger than usual. You may minimize the number of future results of this product if you do this.


Compassion is the key to converting returns into recurring customers. As a consumer, one should design a return policy & processes with which they are comfortable. It's as easy as remembering the golden rule: "Do unto others the way you'd expect them to do unto you." Don't you think so?

The objective is to make conducting commerce with you as simple as possible. Returns that are as simple, unchallenging, & pleasant as possible demonstrate to consumers that you respect them, boosting the likelihood that they will shop from you once more.