I once returned a t-shirt to a vendor because she sent the wrong size. When she asked for my size, I told her I was a medium, but the medium size turned out to be too big, and it didn’t look great.. Not only did she replace the t-shirt, but she also added an apology note and a bottle of perfume oil to the package.

In this situation, the error was both mine and hers, but the way she handled it made me trust the brand more. And I’ve gone on to buy more things from her as well as recommended her to others.

Now, am I saying every business owner should always accept any product that customers want to return? No. This is why you should write a return policy for your small business that guides product returns, to build trust with your customers, as well as protect your business from customers who may want to scam you by returning a good product for no reason.

In this article, we will examine what a return policy is, why your business needs one, what to include in it, and templates you can use for your business.

What is a Return Policy?

A return policy is a set of guidelines that guide how customers return or exchange goods bought, stating when they can be returned, under what conditions, and under what circumstances a return is possible.

From the 1-year guarantee you get on a new phone to the 2-week guarantee on a t-shirt, every business has a return policy to guide returns and exchanges of products, and your business should have one too.

Why Your Business Needs a Return Policy?

Here’s why your business needs a return policy, and how it can help you avoid stress and losses.

1. It aids customers’ trust in you. When you have a return policy that allows customers to return products under certain conditions, such as being damaged, not being the right size, etc., they will be more likely to buy since they are assured that any issue with the product will be resolved.

2. Having a return policy also protects you from getting scammed by customers who use products and return them later. And while you may not be able to catch all of them, you will be able to stop some based on the policy you have.

3. It helps you stay organized and know the kind of returns to accept and reject, based on set guidelines. This helps you avoid losses and stress.

4. A solid return policy also increases customer satisfaction and loyalty

Source: Unsplash

You should read: 14 Business Ideas to Start with 5k as a Student in Nigeria

What to Include in a Return Policy

Here are key things to include in your return policy to cover all bases and protect yourself and your business.

1. What items can be returned

If you sell multiple products, clearly state the products that can be returned and those that can’t be. For example, if you sell perishable or edible products, you should state whether they can be returned and under the circumstances.

2. When items can be returned

Your return policy should also state the timeline for when items can be returned after being bought. For example, gadget stores give a 1-year guarantee for their products, within which you can return the product or get it repaired with them for free. Other companies give 1 1-month, 14 days, etc., depending on the product kind.

3. The conditions under which items can be returned

You should also state the circumstances under which items can be returned, such as if the product was delivered in a defective state, in the wrong size or colour, etc. Some businesses also have a no-questions-asked policy where they collect any product returned without asking questions.

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4. Documentation needed for Return

You should also state the documentation needed to return a product, such as the receipt of the product. This is key to validate that the purchase was made from your store.

5. The Return Process

The process of return should also be stated for customers to know how the return and exchange will take place, the timeline within which the new product will be given, and other key information.

Also Read: How to Know if Your Business is Growing

Return Policy Templates you can use

Here are some return policy templates you can use for your business. Edit them to suit your policy and paste where customers can see before buying.

1. You can return or exchange items within 3 days of purchase with your receipt. Items must be unused and in good condition. No returns on sale items or perishables. Thank you for shopping with us!

2. No refunds. Exchange only within 2 days of purchase. Items must be unworn, unwashed, and with the tag and receipt. We do not accept returns for underwear, sales items, or altered clothes. Please check sizes before buying. Thanks!

3. All sales are final. We only accept returns for factory faults within 2 days.
Keep your receipt and packaging. No returns for damage caused by water, drops, or wrong usage. Please test before leaving. Thank you!

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Protect Your Business

In most cases, return policies favour the customer since they can return goods in bad condition, or the wrong size or colour. However, it is also a way to protect your business from scams and from incurring losses, especially when the fault comes from the customer.

In this case, if your return policy states the conditions under which a return can be made, you are protected from collecting back a sold product if the reason for return is not valid or is not covered by your return policy. Hope this helps you.

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