Simplify the Process…
Establishing your Returns Policy 101 — best practices for returns and exchanges.
A fluid Returns Policy?
We see a lot of fledgling merchants attempt to implement rather complex returns policies… Although there *may* be logic behind these more complex policies — they generally just don’t work so well. One of these complexity failures that we are seeing rather regularly, is a desire to change the returns policy based on the shopper’s selected ‘reason for return.’
In attempt to manage the economics of product returns, merchants propose that if an item is returned because it is ‘defective,’ then the shipping is free. Yet, if the same item is returned because the shopper’s ‘changed their mind,’ then the shopper pays for the return shipping. Sounds fair right? In practice, this is not a good returns policy. Quite frankly, policies like this promote bizarre shopper fraud. Shoppers eventually clue in, and go back to change their ‘reason for return’ in order to get the free shipping. Some interesting research findings on the topic:
Dan Ariely: Where’s The Line Between Cheating A Little and Cheating A Lot?
Having a returns policy that changes based on the ‘reason for return,’ puts your shoppers in a strange ethical grey area. It would be economically silly not to cheat here. This is the last thing you want — leaving shoppers with a funny, less than positive feeling.
Furthermore, policies like this have hidden costs: they actually increase your customer service representative (CSR) interaction — increases overhead and cuts into overall company margins.
Keep it Simple
Implement a simple and straightforward returns policy. Maybe your retail business is new, and you don’t yet feel like you can absorb the shipping costs associated with all returns? That’s okay — evaluate the return shipping costs across the board, and charge your shoppers a low flat rate. Keeps things clear, feels fair, and helps new merchants cover at least some of the costs regardless of the return reason. Once an item is received back in-stock, and its ‘defective’ condition has been verified, take the opportunity to re-engage this shopper positively. This is a great chance to reach out to your shopper personally, refund the shipping cost, send replacement items, and offer them a discount of sorts. This is the makings of a good product review.
A better shopping experience, every time
Be a legitimate business, don’t turn your shoppers into private investigators trying to figure out why a return or exchange went differently than last time. (Although being a P.I. could be a very fun job for some…) Retailers have known for a long time that having a reasonable returns policy is important to shoppers, but it’s also important that your returns policy is simple, clearly communicated, and easy-to-understand.
Helping you to provide the best post purchase shopper experience — it’s what we do here at Returnly.
