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Returns are a significant concern for e-commerce retailers due to the high costs associated with them and their impact on business reputation. Return spikes and surges can erode customer trust, deter investors, and negatively impact sales. Customers often return defective items, products with incorrect size/fit/functionality, or due to a change of mind, and face difficulties in the reverse logistics process. 

While requesting returns may be an easy feat, following up with the pickup, asking for refunds, and addressing return fraud are not always the most pleasant experiences for customers. Sending back items can be challenging for them due to a lack of a well-structured and laid-out returns policy.

An e-commerce business can make or break customer relationships depending on the kind of returns policy offered to them. In this article, you will find your ultimate guide to return policies for e-commerce success, a tool for retailers that want to understand and to create an easy-to-read return policy.

Related read: Return Management for D2C Brands: Challenges & Solutions

Why is a Return Policy Essential for E-Commerce Brands? 

A return policy is a standard document informing customers about the items they can return, within what timeframe, and under what circumstances they can return such items. These policies are outlined to help customers return and exchange products they've refused.

Brands establish stringent and clear guidelines in their return policy to meet customer expectations and avoid any room for confusion. Here are a few return rate statistics by ClickPost to grasp the importance of a return policy:

Key Elements of a Strong Return Policy 

A strong return policy contains terms and conditions, outlined in clear and customer-friendly language. It specifies eligibility, time windows, and how to initiate the returns and refunds processes. Here are the most important components of a strong return policy:

1. Clarity and Transparency

Clarity and transparency are crucial elements in a strong return policy. A clear and straightforward policy allows customers to understand their responsibilities and rules out disputes and misunderstandings.

2. Return Window

Return windows determine the time frame for returns, ensuring customers follow the correct deadlines to return the product. It allows them to reduce returns fraud and keep customers satisfied.

3. Condition of Returns

The parameters that define the return of a product are conditions within a return policy. These are the terms and circumstances under which customers will accept returns. For example, items should be returned only in their original packaging.

4. Refund or Exchange Options

By offering refunds and exchange terms within a return policy, brands dictate under certain circumstances, customers will be reimbursed for the products they鈥檝e purchased. Whether they are eligible for a refund or not, they will instead get an exchange option for the returned product.

Common Return Policy Mistakes to Avoid 

Businesses often make mistakes while penning down return policies, and it can cost valuable customers and their reputation. Here are the 4 common mistakes to avoid in the policy creation process:

1. Omitting/Hiding Return Policy Information

Hiding information or omitting return policy information prevents customers from reading the correct information and breaches trust. Brands also misplace information on their policy page and forget to include return policy terms in order confirmation emails.

According to , 82% of online shoppers are influenced to make a purchase with a retailer based on the return policy. So, hiding or omitting any information in the policy can undermine customer confidence in making the purchase.

2. Charging in Returns

Most customers expect free returns and charging for return shipping can affect your relationship with customers. Free returns remove the reluctance from customers, allowing them to return the item confidently. A report by the National retail federation shows, of consumers consider free returns a factor before planning to shop.

3. Unrealistic Time-frames

E-commerce retailers often set unrealistic return windows that can turn away customers. of customers expect the return window up to a month, while 23% expect the standard minimum of 14 days. Many merchants set shorter timeframes (less than a week) for filing the return requests, allowing customers very little time to try the product before returning it. 

4. Not Analyzing Return Data

According to Meteor Space, almost of all products bought online are returned, compared to approximately 8.89% in physical stores. For an ecommerce retailer, this data indicates a significant gap between in-store and online returns.

Analyzing data is a key component of a return policy as it offers firsthand information from customer interactions. By overlooking this data, brands fail to understand potential quality issues and customer preferences and remain unaware of customer feedback.

Best Practices for Writing an eCommerce Return Policy

A fair ecommerce returns policy is an embodiment of trust between the business and the customer. Offering an uncomplicated and straightforward returns policy can boost repeat purchases and conversions. Here are the best practices to help you get started:

1. Be Clear and Concise

A clear and concise return policy improves repeat purchases and builds customer trust. Brands can list return timeframes for each SKU on the product page and offer an easy-to-understand system for submitting return requests, making exchanges, and understanding return conditions. 

For example, if a specific product return involves extra charges or exchanges are not allowed on it, they should clearly mention that in the returns document.

Also, businesses can avoid jargon and offer simple instructions to customers on how to initiate returns on self-serve returns portals.

2. Set a Reasonable Return Window

By offering a reasonable return window to customers, e-commerce enterprises can set practical timeframes for customers. For example, the industry standard time is 30 days, but the time window can vary based on the industry, product type, and customer expectations. For example, some brands offer extended return times, like 60 or 90 days. However, some products like perishables may have a significantly shorter or no return period. 

3. Communicate Any Restocking Fees or Return Charges

Prior communication of any restocking fees and return charges with customers helps brands avoid disputes and misunderstandings in the returns process. It gives them upfront knowledge of what fees will apply and enables them to make informed purchase decisions. 

For example, a restocking fee may be applied if a customer tries to return the item outside the given return period. In case of a wrong shipping address, they might be responsible for additional return charges.

4. Include a Return Policy Link on Key Pages

Including return policy links on checkout pages, product pages, and other pages on the website makes it easy for buyers to access the document and make informed purchase decisions. Instead of going back and forth on the website, they can skim through the terms and conditions while looking at the product they鈥檙e about to purchase.

5. Specify the Condition of the Items

Specifying the condition of the returned products or items is a crucial and common practice while creating a return policy. It outlines whether the item is in a reusable or unused condition, has original packaging, and whether tags are attached to it. For example, most brands do quality checks and suggest that customers take photos of the product being returned.

Also, it is important to provide clarity on non-returnable or exempt products.There are some items that buyers cannot return, such as perishable goods, personal care items, and products with a shelflife. Several products may have legal restrictions on returns and refunds. Clarifying these restrictions and specifying the item condition to customers can keep buyers on the same page with the business.

6. Offer Multiple Return Options

Multiple return options can enhance customers' experiences with reverse logistics. Brands can offer multiple choices based on convenience, preferences, and trust. In-store returns, third-party drop-offs, contactless returns, partial refunds, and store credits are some of the common examples of multiple return options. This allows brands to increase sales and retain customers.

7. Clearly Define the Refund or Exchange Process

One of the most important aspects of a return policy is its refund and exchange. Offering a clear breakdown of the refund and exchange process is vital for customer satisfaction. 

The refund process should be outlined in points, including the steps to request a refund, refund eligibility, payment gateway options/information, store credit or wallet options, any additional costs and fees, and refund processing time. The exchange process defines whether the product is exchangeable, how long it can be exchanged, and the products to which it can be exchanged.

8. Provide Customer Support Contact Information

Providing customer support contact information is critical in returns management. Lack of customer service and proactive communication can lead to confusion, distress, and mistrust. When buyers cannot talk to a customer care executive, they feel helpless and ignored. Hence, brands should offer an email address or phone number in the returns policy for customers to reach out.

9. Personalize Return Instructions Based on Product Category

A generic return policy can confuse customers when you have varied product types. For various product types, it is crucial to have return instructions based on the product category. For example, fragile goods may require specialized packaging guidelines. By offering category-specific returns instructions, brands can convey to customers that they care about handling returns correctly.

Seamless Returns, Powered by ClickPost Automation

ClickPost offers automated returns management to over 450 brands worldwide. It replaces all manual returns processes and offers API-first reverse logistics solutions. Its Returns Pro platform allows customers to place return and exchange requests through a self-serve portal. The logistics intelligence platform converts 54% returns to exchanges and helps brands retain 40% of their revenue via in-store credits.

Final Word

E-commerce returns are not lost opportunities when brands offer clear return policies to customers. For the best returns experience, it's not just the returns management that attracts customers, but also how well a return policy is laid out. Detailed terms and conditions, customer-friendly language, and refund timeframes help keep customers coming back for more. 

The above return policy guide comprehensively lists essential elements in the policy, best practices, and common mistakes to avoid. With it, businesses can simplify return policy content and give customers the best return experiences.