How to Set Up a Return Policy for eCommerce Brands 

Someone setting up a return policy

Despite your best efforts, some customers will inevitably be dissatisfied.

Whether they got the wrong size or a damaged item, the return process can quickly turn into a nightmare for you and your customers—often due to high return shipping fees and complex policies.

Moreover, a study showed that more than 30% of products ordered online are returned, and 92% of consumers said they’d only repurchase if the return process was easy. It goes without saying that your eCommerce store needs a clear and comprehensive return policy.

Read on to learn what information to include in your return policies and how to clearly explain them to customers. Your goal is to set up a return policy that meets industry standards and exceeds customer expectations.

5 Things to Include in a Return Policy

Crafting an extensive return policy is essential for your eCommerce brand to ensure transparency, manage customer expectations, and build trust.

Here are 5 things to include in your return policy:

  1. Eligibility and Timeframe: Define the eligibility criteria for returns, such as unused or undamaged items, and specify the timeframe within which customers can initiate a return.
  2. Return Methods and Shipping: Describe the process for initiating returns, including whether customers should contact customer support, fill out an online form, or use a self-service portal. Also, indicate who bears the cost of return shipping.
  3. Refund or Exchange: Clearly state whether customers will receive a full refund, partial refund, in-store credit, or an exchange for returned items, and detail the criteria for each option.
  4. Condition of Returned Items: Detail the condition the returned items should be in to be eligible for a refund or exchange. Include any specific requirements for packaging. This can help you re-sell a returned item that isn’t damaged.
  5. Exemptions and Non-Returnable Items: List any items that are exempt from returns, such as personalized products or items on clearance. Additionally, explain the process for handling damaged or defective items, such as requiring photographic evidence.

5 Steps to Write a Return Policy

Your return process is an opportunity to reverse whatever dissatisfaction customers had with your product. If you do it right, customers that returned an item may be even happier than those who didn’t, as the additional positive experience with your brand solidifies their trust in your business.

Here are 5 steps to ensure that your return policy is written for the benefit of all parties:

1 – Research Industry Standards

Begin by researching return policies of successful eCommerce brands in your industry. Analyze what works well for them and identify common elements that resonate with customers. This will serve as a valuable benchmark for crafting your own policy.

2 – Identify Business Objectives

Clarify the goals of your return policy. Determine whether you aim to reduce return rates, increase customer satisfaction, or build brand loyalty. Aligning the policy with your business objectives makes it a strategic tool rather than a formality.

3 – Define Eligibility Criteria

Go back to the earlier list to draft your first return policy. Put yourself in the shoes of a customer to review and revise the conditions, if necessary. The clearer your requirements are, the lower the chances of someone feeling like the policy is unfair.

4 – Establish a Return Process

Describe the steps for customers to initiate a return. Detail whether they should contact customer support, use an online form, or use a self-service portal. Ensure the process is straightforward and user-friendly, so nobody gets overwhelmed or frustrated.

5 – Check Policy Compliance

Ensure that your return policy aligns with relevant consumer protection laws and regulations in the regions where you operate. Review the policy to avoid any misleading or unfair clauses that might put your store at risk.

Your return policy should put you and your customers on the same page regarding returns. So don’t use complicated words and sentences. Remember also to keep their expectations in mind when writing the policy. You want to make them feel valued by your brand.

Returning to Satisfy Your Customers

When dissatisfied customers want to return their order, it means they know your business can still make things right. So, prepare for those situations by having a well-crafted return policy. It’ll help boost customer satisfaction and contribute to the overall success of your eCommerce brand.

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At San Legend, we help eCommerce businesses scale their brands and break into new markets by providing customized, agile, and forward-thinking third-party logistics solutions. Reach out today to see how we can help.