Informative return policy - it's importance and 8 tips
What's a return policy? The right of withdrawal gives consumers in the EU the right to return products they have purchased without giving a reason. A merchant's return policy includes all conditions related to compliance with the right of withdrawal. In this article you will read why a good return policy is particularly important for merchants and how best to implement it.
Why do you need a good return policy?
Initially, the right of withdrawal was introduced to protect consumers. The right of withdrawal creates a sense of security and trust among consumers because it gives them the assurance that they can return the product upon receipt if they are found to be unsatisfied. With a solid return policy and clear return conditions, you can confirm and validate your brand image. Clear information about the return process on your website is important to gain the trust of potential customers. A customer-friendly returns process also contributes to customer loyalty. If the return or exchange of a purchase is handled in no time, the person is more likely to order from you again in the future. Therefore, the right of withdrawal is not only a necessary evil; it is also part of your business strategy and can increase your distinctiveness.
The importance of a return policy for conversions
We've already established that a clear return policy helps gain your customers' trust. However, it can also help speed up consumers' purchasing decisions. Research has shown that 67% of all consumers check the return policy before making a purchase. If the information about your return policy is hard to find or unclear, or even completely missing, you will lose potential conversions. A good return policy with clear return conditions is therefore an essential part of your value proposition - and can contribute significantly to increasing your conversion rate. All information about return options and the legal return period should be easy to find on your website.
Important components of a return policy
An effective return policy considers several aspects. First, it should include the return period, i.e., how long after receipt customers can return their products. Another important issue is the return cost: who pays for the return? Free returns can be an attractive USP (unique selling point) for your store, but you are not legally obligated to cover them. In addition, you would do well to define return conditions for different product categories, for example for perishable goods or hygiene products.
The following table summarizes return conditions and shipping details for specific product examples found in e-commerce listings:
| Product Description | Return Policy | Shipping Information |
|---|---|---|
| One Degree Organic Foods, Gluten Free Sprouted Rolled Oats, 2.27kg/5 lbs. | 30 days returns. Buyer pays for return shipping. | Seller ships within 1 day after receiving cleared payment. |
| 26.4-66 Gal Pressurized Well Tank Stainless Steel Water Pressure Tank For Well | Seller does not accept returns. | Located in Philadelphia, Pennsylvania. Does not ship to Germany. |
Advanced Return Management Features
To optimize your workflow, consider implementing the following features within your platform:
- Return rules: With return rules you decide which returns you accept want which ones you decline.
- Return form: Create your own customized digital return form.
- Return analytics: Use return data insights to prevent future returns.
- Exchanges: Keep things smooth for your customers by offering fast exchanges with coupons they can use whenever they're ready to shop again.
- Automations: Fully automate your workflow by setting up triggers that perform actions.
Moreover, it is important to specify the different return methods in your return policy. Let your customers know how much time they have to return purchased products and who exactly bears the return costs in which cases. Clear information about the return process on your website is important to gain the trust of potential customers.
