In: Root » » Web design tips » Establishing return and refund policies
Establishing return and refund policiesBefore you ever ship your first order, you need to establish (and clearly post on your Web site) your policy regarding returns and refunds. Without it, you’re asking for trouble from day one. As a credit card merchant, you have a few things you can do to protect yourself from losses, and this policy is one of the most important, yet often overlooked, ones. Why? Because if you have a clearly stated (and obviously posted) refund-and-return policy, then the credit card company will abide by those posted rules in handling any complaints that your customers file with them. You can find a good example of a refund and return policy at http://www.microcenter.com/how to shop/return policy.html Here are some tips for what to keep in mind while creating your site’s refund-and-return policy: - Time limits You should specify the length of time during which a product may be returned. Is it 30 days, 90 days, a year, a lifetime? Does the time limit vary for particular products or classes of products? - Valid reasons For what reasons will you accept a return or issue a refund? Are there any special conditions for different products? For example, do you need one policy for electronics and another for housewares? - Restocking fees Your customers should be aware that any open box may be subject to a restocking fee, often 15 percent. You should not allow returns of software or videos, since customers can buy, copy, and return. If you sell software downloads, you may restrict returns if you’ve already sent them a product key you can’t revoke. Look to other sites, such as BestBuy.com and Amazon.com to see how they handle returns. They have good reasons behind their policies and are a good model upon which to base yours. - Return authorization Can your customers just send it back, or do they need to get an authorization form from you for the return? If the latter is the case, then you need to assign responsibility for handling the return approval process. Is it the job of customer service, technical support, accounting, or some other department? - Packaging If the item has been opened (and that is usually the case), does it have to be returned in its original packaging? What if the UPC code is missing from the box? - Documentation What proofs of purchase do you accept? If you’re dealing solely online, you don’t have a signed receipt. Any form of receipt you sent via e-mail, or that the buyer printed out from your Web site, can be easily forged. Therefore, you have to rely on your own sales records for your own protection. - Bricks and mortar If you operate a conventional, physical store in conjunction with your Web site, does the same policy apply to purchases from both? What about if someone tries to return a product at your store that was purchased from your Web site? - Shipping charges You need to factor shipping costs into your return calculations. Depending on your product, they may be a serious impediment to the return process. Be sure that you state who pays for what. There may be specific limitations that apply to you, depending on where you live and what industry you are in. For example, you may find that you have to lengthen your time limit or make exceptions for residents in other states. Check with your lawyer to ensure that the policy you adopt does not violate applicable laws. |
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