How to Write a Returns and Exchanges Policy for an Online Store
A Returns and Exchange Policy Should be Easy to Find.
According to the 2017 UPS Pulse of the Online Shopper survey, 68% of shoppers view returns policies before making a purchase.
Your eCommerce return policy isn’t just a good business practice – it’s the law. Under US federal law, you must accept back merchandise that is defective. In addition, customers have three days to change their minds about products that cost at least $25. Additional state laws may also apply to your returns policy.
However, a friction-free return policy — one that offers at least a 30-day window for free returns and entices shoppers to convert into customers — will lead to commercial demise unless the policy is supported by (1) a frontline approach to deal with serial returners and (2) a reverse logistics infrastructure.
Habitual returners fall into two distinct types:
The Wardrober
People who buy items to wear once and have no intention of keeping them afterward. The Wardrober may not be able to afford the item or are taking advantage of overly lenient policies.
The Fitting Roomer
People who replicate the brick-and-mortar experience at home by purchasing different sizes and colors of the same item, pick their favorite, and return the rest.
Lastly, in order to see how you stack up against your peers and competitors, Return Magic surveyed 1,000 businesses in multiple industries and compiled data from over 800,000 Shopify customers.
Consumer preference-based return reasons (e.g., size, fit, style, etc.) tend to drive around 72% of all returns in fashion product categories. Non-preference-based reasons (e.g., defective) and “not as described” account for 10% in total.
Top reasons for returns
Size too small: 30%
Size too large: 22%
Changed my mind: 12%
Style: 8%
Not as described: 5%
Defective: 5%
Other or not specified: 18%