eCommerce Return PolicyHow to Streamline Your Return Rules to Better Serve Your Customers & Prevent Chargebacks

Your customers want to know what they can return and in what condition it can be returned. For instance, if you’ll only accept new, unused merchandise with tags, then you need to specify exactly what “unused” means. Many customers might attempt to wear or use an item before they decide they don’t like it and want their money back. If this type of “no questions asked” return is unsuitable for your business, you need to say so upfront.

Some companies will still accept mildly used returns, but will assess a 20% restocking fee after a cursory examination. This is an option to ensure your customers can still return the items they didn’t enjoy, but also illustrate that you are willing to work with them.

If your customer needs a receipt or an authorization number, let them know in advance of every sale. If you’ll accept items that are gently used with a restocking fee, maybe you can make some sort of concession here where the customer can receive a partial refund for items that still have tags. Or, maybe offer to give store credit in exchange for the item without a receipt.

However this plays out, the point is to let your customers know what they’ll need to provide for a full refund. Store credit and exchanges can help soften any refund declines and keep your customers happy. To make this even easier, you might ask customers to choose which option they prefer before initiating the return process.

This is very important: don’t ever surprise your customers with fees at the end of a return or exchange. If you charge restocking fees, service fees, or shipping and handling fees for returned items, you need to be transparent about those in your return policy.

What about items that are broken, or don’t work as promised? You should detail the exact circumstances under which you’ll accept a damaged or defective return without fees. Think about it like this: if you buy a damaged item directly from a store and return it that same afternoon, you shouldn’t be charged to return or exchange that item.

Every option you provide for returns should have a detailed timeline attached. Most eCommerce companies offer returns between a 30 and 60-day window, but some limit returns to 15 days while others extend that period up to 90 days.

Spell out these timelines in clear, plain language. Whichever return window fits best with your products and services, ensure that your customers are aware of that timeline before they finalize a purchase.

Before you start editing your eCommerce return policy, take a step back and re-evaluate your entire sales process from start to finish. You might identify several ways to prevent returns from happening in the first place.

Review product and service descriptions for accuracy and detail. Do product images show details like size and color, and do they capture the item from different angles? Incomplete information can make customers feel like they’ve been misled. This will lead them to return merchandise.

Obviously, an exchange is a far more profitable outcome than an outright return. Providing consistent, excellent customer service can allow you to determine what about your products and services isn’t working for your customers. Once the reason has been established, you have an opportunity to offer the customer something of equal value which might better suit their tastes.

This won’t always work out to your advantage, as some customers will simply want their money back. However, try to consider each return an opportunity for an exchange. A savvy tip to make an exchange more likely is to offer free return shipping for exchanges.

Canceling a recurring payment can be embarrassing for the customer. If they feel duped, customers may even become angry. Such feelings can lead to chargebacks as the consumer tries to avoid confronting you.

That said, “canceled recurring transaction” chargebacks — even fraudulent ones — are often hard to challenge. It often comes down to the customer’s word against yours. Since issuers usually side with the consumer, you should focus on prevention here.

Your customer is more likely to enter into an agreement when they know they can easily cancel. So, make your cancellation process clear, simple, and easy to navigate. Eliminate early termination fees or other penalties whenever possible.

You don’t have to restrict your return policy to just one type. You can tailor it according to timelines by staggering allowable returns according to the time elapsed. For example:

• Full refund at 15 days
• Partial refund at 30 days
• Exchanges only after 30 days
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The more options you provide your customers, the better. Also, another smart tip here would be to include return separate instructions within your refund policy for “full refunds” and “exchanges,” to walk customers through the process.

Many companies out there have incredible return policies that can — and should — inspire yours. Do a little research and browse your competitors’ sites. Some return policies are extremely straightforward, and others are more dynamic, offering customers more options and control over their return process.

Also, examine reviews to see what each company’s customers are saying about their customer service, the scalability of their user experience, and the speed and quality of their return process.

Yes, we just talked about fees like return shipping. It might seem financially sensible to charge the customer for return shipments. Remember that stat we mentioned earlier, though: nearly 80% of shoppers say they look for merchants who offer free return shipping.

Consumers view free return shipping as insurance. It can incentivize them to buy from you rather than a competitor, even if they don’t plan to return the item. Plus, removing the cost barrier in the refund process will dramatically improve the odds of getting a return request, instead of a chargeback. So, the long-term benefits are worth the extra cost.

If customers are going to be responsible for return shipping or restocking costs, be sure they understand that clearly from the beginning, before the sale ever happens.

You may think that promoting your return policy will encourage customer returns. In reality, delivering a transparent, upfront policy gives consumers more incentive to make a purchase. This is because the customer believes they can have confidence in your brand.

Don’t be afraid to call attention to your simplified policies. Display a link on every page of your website, including product description pages. It’s especially important during checkout. Also, ask customers to “accept” the policies before processing.

Don’t forget to remind customers after the sale, too. Include return policy information in your order confirmation email, on the receipt, and even on the packaging, if possible.

It matters how fast you process returns. According to a survey from Digital Commerce 360, 72% of eCommerce shoppers expect a refund within 5 days of a return. 40% of respondents said they’d limit their shopping with merchants who take too long to issue a credit.

Impatient customers may initiate a dispute if they think they will get their refund faster. That’s why it’s important to process return requests as quickly as possible and get the money back to the buyer.

There are pros and cons associated with longer return windows. For instance, delayed returns can cause restocking issues for you. The more time a cardholder has to make a return, though, the less likely they are to file a chargeback.

One option might be to consider varying the allowable return time under certain conditions. You can allow extended return timeframes for cases of damaged or malfunctioning merchandise. You may also want to relax your requirements during the holidays, as well. And, of course, the most consistent rule in this list still applies: clearly communicate all information to customers before the purchase.

You might assume that your employees completely understand all aspects of your eCommerce return policy. You know what they say about assuming, though.

Be sure all staff members, from the sales team to the customer service department, understand the rules of the return policy. Don’t just lay out the rules, though; explain why those rules are in place. This can help keep employees from making promises the company can’t (or doesn't want to) keep.