How Refund, Replacement or Credits can be the best option to manage Returns
It is an excellent idea for all ecommerce websites to set up a refund policy but they do not know where or how to get started.
It is an excellent idea for all ecommerce websites to set up a refund policy but they do not know where or how to get started. If you own an online business then you surely do know of the thrill you get whenever there is a purchase made. Since the ultimate goal of setting up an online business is to increase sales. For all the time and effort put into building your online website and marketing the products, the sales are a way of reassurance and fruits of your investment. However, this excitement can quickly fade away if someone requests for a refund or return. Every online business owner would love it if their customers were well satisfied with the buying experience and the product that they keep coming back to, but sadly the reality of retail is that there will, at some point, exist that small percentage of buyers who will want their money back or will ask for an exchange.
Hence the existence of a proper and well planned returns is important in educating your customers ahead of their purchase as to the procedure which needs to be followed and executed whenever there is a request for a return.
A well planned returns policy will have the following basic options:
1. Refunds- Stating a no-refunds policy to your customers or making your refunds policy difficult will cause many shoppers to look for another seller. A proper and well stated refunds policy with all the criteria for a refund to be carried out, this carried out with utmost execution, will surely win over your customers’ trust and will help you in customer retention. Refunds in the form of gift cards also are a great way of increasing sales and allowing the customer to choose from a range of products.
2. Replacement/Exchange- Just like a well stated refund can make the returns process easier for you as well as the customers, a proper exchange policy can also do the same and also help build customer loyalty. Customers will feel that their requirements will be taken care of despite their purchase not working out and are likely to buy from you in the future. Instead of a refund of their cash, exchange will not affect your sales rate. Hence, entice shoppers to exchange instead of return by covering the cost of exchange shipping. An exchange policy that ensures it will not cost more than their initial purchase, wins you their trust and makes them comfortable in taking a chance on a product.
3. Credit- A credit policy helps you keep the money in the family, meaning, offering a spendable balance as a part of the credit policy to the customers that can be spent on a new product, is a popular option for ecommerce business owners. Credit helps in keeping the customer’s former cash with you without the headache of returns or refunds. Customers will end up purchasing products a second time. Plus credit leads to upscale sales.
Thus availing your customers with the above mentioned options as a part of your returns policy will definitely act as a catalyst in increasing the sales, save time and also help retain the customers.