Supply Chain Management

How to Write an Awesome Return Policy for Your eCommerce Store

How to Write an Awesome Return Policy for Your eCommerce Store

As an online store owner, you must overcome the limitations of working in the world of eCommerce. It’s impossible for a shopper to physically touch or look at a product before making a purchase – one of the limitations of online shopping. Online stores can combat this problem by creating return policies that are concise, informative, engaging, and easy to understand. Making it easy for customers to return and exchange items is crucial for your eCommerce return policy.

For refunds, exchanges, and returns, it is imperative that you have a clear policy. Return policies are a must for small businesses that want to succeed. There are a few things to keep in mind when writing a return policy for an eCommerce website. We’ll go over each one in this guide.

Also read: How to Optimize Same-Day Delivery in Your Supply Chain?

What is Return Policy and Why is It Necessary To Have One?

Refund & Return Policy refers to the conditions under which customers can return products purchased from an eCommerce store as well as whether you will reimburse them. Furthermore, it will let your customers know how long they have to return an item to your company. Returning items can be a very emotionally and financially draining task.

Customers who receive a refund can lose profits, and business owners who strongly believe in the benefits of their products can be disheartened when they find out that someone disliked their product. The reality of returns and exchanges is sometimes difficult to comprehend, and so it is tempting to ignore these issues. If you would like to know how a return policy should be, is a good example.

Conditions Under Which You’ll Accept Returns

If the product doesn’t work or the customer is unhappy with a purchase, you may be inclined to accept a return and issue a refund. Using, damaging, or altering a product over time, and over a prolonged period of time, is quite another issue. Therefore, when you are creating your Return and Refund Policy, be sure to include a section that explains the conditions under which you will accept returns and refunds.

Return Requirements

In order to process returns, you must let your customers know ahead of time whether they need to meet any requirements. In your Returns and Refund Policy, you should specify that all products must be returned in their original packaging and unopened. You might also require customers to provide:

  1. Authorization number
  2. Purchase receipt
  3. Shipping address

Choose In-Store Credit or Refund

A customer is likely to want to know what their compensation plan is before returning a product. Some may request a full refund, whereas others may accept in-store credit. You have two choices if you operate an eCommerce store.

Disclose any Fees Associated with Returns

Who is responsible for the return shipping and restocking costs incurred by customers who return items purchased from your store? These things should be clearly stated in the Return and Refund Policy. Consider your customers’ perspective, who may find it unfair to receive a defective product, only to discover afterward that they are responsible for paying for it to be returned. Be sure to clearly state that your customers must pay for return shipping if you do require them to do so.

4 Ways To Proactively Reduce Returns

In order to increase sales and build customer loyalty, it is vital to offer a great return policy. Although retailers spend 8.1% of their sales on reverse logistics, reducing overall return volume can be beneficial as well.

  1. Clearly describe your products
  2. Increase return time window
  3. Conduct regular quality testing
  4. Recognize the trends associated with frequently returned items

Also read: 10 Sales Promotion Ideas to Boost Your Sales

Where to Display Your Return and Refund Policy

Having a well-written Return and Refund Policy is just not enough. Your e-commerce store must display it before your customers can make a purchase. Even if a dispute arises and you advise your customer to review your Return and Refund Policy, even if it is hidden on your site or unavailable, they may never come back to you.

Several places on your website that are easy to find should have links to the policy, so you don’t have to waste time dealing with customers who don’t know it. You should place links to your Return and Refund Policy in the following places:

  • FAQ page
  • Shopping cart
  • Checkout page
  • Website chat tool
  • Product page
  • Your website’s footer

Having clearly written return and exchange policies on your website helps your customers make informed purchasing decisions. If your Return and Refund Policy isn’t easily accessible, there is a possibility that there will be customers who don’t like it no matter what it says.


For any business that sells online products, having a Return and Refund Policy is crucial. In addition to security for sellers, buyers know what to expect when they buy. The Return and Refund Policy of your eCommerce store is imperative if you want it to prosper. I appreciate you allowing me to share this information with you and I hope that it was helpful in creating a proper return policy. I invite you to post a comment if you have questions or comments about this article.

Written by
Isla Genesis

Isla Genesis is social media manager of The Tech Trend. She did MBA in marketing and leveraging social media. Isla is also a passionate, writing a upcoming book on marketing stats, travel lover and photographer.

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