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How to create a return policy for your online store?

14 Dec 2022. 16:34
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  • SME maturity
    1. Comercio electrónico
    Scope to digitize
    1. Business processes

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Having a return policy is vital for your online store. In this post we tell you what it is and how to create one to boost your customer satisfaction. Keep reading!

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Returns, exchanges and refunds are part of the processes of any business. Whether it is a change of size, colour, or simply that the product does not meet the expectations of customers, at any time we can request an exchange or refund. For this reason, it is important to have a well-defined return policy.

Both in Spain and in Europe there are consumer and user protection regulations on guarantees for consumer goods. According to European Union legislation, if you buy a product that is defective, does not work, or does not correspond to what was advertised, the seller must repair it, replace it or give the buyer a discount or refund. This applies to both physical and online retailers.

Therefore your business must have a return policy in place to handle these requests properly. But fear not! In this post we tell you everything you need to know about a return policy and how to do it.


What is a returns policy?

A return policy is a document that describes the process to be followed, both by the company and the customer, when a customer makes a complaint or wishes to return a product or service for any reason.


What is the importance of a returns policy?

Handling exchange and return requests is a very important part of an e-commerce business, since they have to do with the customer's shopping experience. And while an exchange or return is not going to increase the profitability of your business, the more favourable the customer's shopping experience, the more likely they are to buy from you again.

A clear and well-defined returns policy can drive the act of purchase. According to a survey by Sendcloud, 65% of respondents stated that they review the return policy before making any purchase. This means that customers feel more confident when shopping in an e-commerce, knowing that they can for any reason. 


Guide to creating a return policy

Below, we have created a guide to help you build an easy and uncomplicated return policy that will improve conversion rates and purchases. To do this, you should consider the following factors:

  • Exchange or return deadlines In Spain consumers have the right to return any item within 14 days of purchase, according to EU regulations.
  • Return or exchange costs The decision as to whether the shipping costs for the exchange or return are borne by the customer or not is up to the retailer. It usually depends on the profit margin, the products and the size of the business.
  • Return or exchange procedures The return or exchange process should be as simple and flexible as the purchase process.
  • Scope The products to which the return policy applies should be defined.
  • Refund  This consists of deciding if the money will be refunded or if the customer will be given a store credit and what steps the customer must take to complete this exchange or return.

 Once you have set up the details of your return policy, you can formalize it in writing to clearly communicate it to your customers. Your policy should include the basics mentioned above and the steps the customer will need to follow in order to complete the return or exchange. Before going into the details of the return policy, we advise you to mention the transparency and honesty your business has. This will reassure the consumer.


Where to display the return policy

After writing your return policy, you should make sure that customers can see it before making a purchase. Just like legal texts, the return policy should be placed in a visible place. On your web page you can include it in:

  • The footer.
  • The FAQ page.
  • The product page.
  • The shopping cart.
  • At checkout.

As you can see, having a clear, simple and efficient return policy is key for your business. The way you decide to handle these requests can enhance your customers' shopping experience and encourage repeat purchases


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