The 6 keys to a return policy that doesn't cost you sales

93.88% of shoppers will not complete a purchase if the return policy is missing or incomplete. That figure comes from our State of Returns Report, based on almost 3,000 ecommerce customers. These are the 6 points yours needs to cover.

Just a few days ago we launched our first State of Returns Report. A report based on the responses of merchants and almost 3000 end customers where we asked them about the key aspects that make a perfect returns and exchanges process in ecommerce.

From all the answers, we extracted 6 main points that every online shop should include in its Returns Policy:

What items can be returned or exchanged?

If you offer a variety of items and some are not returnable or exchangeable, make this clear so that your customers know before they make their purchase.

How long do customers have to return an item?

It's important that you include this information so that your customers know how long they have to request a return.

What condition must the product be in?

There will be cases in which it is not possible, for example, after use.

What refund options should you offer?

For example, if you offer instant refunds, explain this so that your customer knows that they will receive their money back in just 5 seconds. Or if you offer in-store credit, also explain it so that all those loyal customers know that they have this advantage.

Who pays for return shipping?

Include all the costs generated by the return and those incurred by the customer: return shipping, if you charge for the return itself or for a specific method, etc.

What steps does the return process have?

Any information added in this section of your ecommerce will be more than welcome, so specify the steps that your customer must follow to return or exchange the product: when to send the product, if they have to pick it up at home or if they can take it to a collection point etc.

If you have an ecommerce and you accept returns, this is the minimum information your customer should have access to in your returns section on your website.

Why an incomplete return policy costs you sales

Because you have to take into account that most customers do not only pay attention to the returns section once they have made a purchase, but even before they have done so. In fact, as we reflect in the report: “93.88% of those surveyed say that if the returns policy is non-existent or incomplete, they will not make the purchase.”

This means that with an incomplete or non-existent Returns and Exchanges Policy you are losing sales. You are causing many of your potential customers not to complete the conversion because they do not know for sure what happens if they have to return a product from your shop. And this clearly affects your conversion rate and turnover.

As you can see, adjusting your Returns Policy is simple but the benefits are enormous. But do you also want to offer flexible solutions to your returns? If the answer is yes, we are here to help.

Frequently asked questions

How do you write a return policy?

Cover six points: which items can be returned, the deadline, the condition the product must be in, the refund options you accept, who pays for return shipping and the steps the customer follows. Write each one in plain language and place the policy where it can be found before checkout, not after.

What are valid reasons for a return or exchange?

The most common are the wrong size, a defect, a product that doesn't match the description and a change of mind. The first three are almost always accepted. Change of mind is where brands differ, and in the EU it is covered by the 14-day right of withdrawal.

What is a return policy?

A return policy is the document where an ecommerce sets out how, when and under what conditions a customer can return or exchange a product. It covers deadlines, the condition the item is accepted in, refund options and who pays for return shipping.

Should the return policy and the refund policy be the same document?

They can sit in the same document as long as both are clear. The return policy explains how the product travels back. The refund policy explains when and how the money comes back. Splitting them only makes sense if each one is just as easy to find.

Is there a return policy template I can copy?

A basic one: items eligible for return, the return window in days, the condition accepted, refund options (original payment method, store credit or exchange), who pays for return shipping and the steps to request it. Adapt each line to your own operation before publishing.