Return Policy - Essential information for businesses to know.

It is important to know that selling a product or a service is not the final but rather the initial stage for businesses, especially for those with intention to build long term relationship with costumers, rather than just sales.

What is Return Policy and when it applies

Return Policy, to put it simply, is an agreement informing customers about returns of products or money refund policy to be applied by the business when the final product or service outcome is not satisfactory.

It can be applied when:

the product is faulty or damaged

the customer has bought the wrong product

the customer does not want anymore the product

the product or service does not meet customer's expectations

the customer received the product as a gift and does not wish to keep it

Why is Return Policy necessary

There may not be a specific law that a Return Policy must be issued by a business. However, it is necessary to have one for the following reasons:

it highlights professionalism

buyers know what to expect if not satisfied

the business is prepared for the consequences if a customer is not satisfied

in case customers are not presented with a Return Policy, there are no conditions to control returns and business may have to refund without conditions for up to 100%.

In addition, if there is no Return Policy or it is not very specific or clear there is the danger of fraud by profiteers against the business

Return Policy Information usually includes:

under which conditions returns are not acceptable

reasons allowing 100% returns or refund

time framework allowed for returns

method of refund or replacement

who is responsible for postage costs

... etc

How to practically apply Return Policy

A situation requiring return of a product can be uncomfortable for everyone. It is however part of the business activity. Your business should therefore always be ready to examine objectively the situation if it wishes to maintain its reputation towards its customers.

So whenever a customer asks for a return or refund, you should at least:

  1. find out the reason why customer wishes to return a product.

  2. go through Return Policy to make sure the customer can rightfully ask for a return or refund. If they can, you can proceed to step 3.

  3. ask for the purchase receipt (occasionally, other details may be asked for, such as proof of identification) to ensure the product was indeed purchased from your business.

If you own a business, you are also advised to keep a more human approach when examining a return/refund claim. In some situations, you may ignore some less important evidence that may be in favor of you, so that your business maintain a more approachable and human character.

Do not forget that the aim is to form and maintain long term strong relationships with your customers based on trust and credibility.

Click here to download free sample of a Return Policy

Translated / Edited by, Apostolia Nestoratou

© 2019 UPECO LTD

ATTENTION! This article intends to give only a general informative picture and should not, in any case, be taken as a rule. It is strongly recommended to seek a full and professional guidance specifically for your circumstances before making any decisions.

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