In a recent Harris Poll, 91% of those interviewed said a store’s return policy is an important factor in making a purchasing decision (San Francisco Chronicle, “Customers want rules of returns clearly spelled out by merchants,” July 4, 2007).

A return policy was created to give customers the guarantee that the display models they see in stores (and images/descriptions they see online) accurately represents what they buy.

A return policy has more significance in purchasing decisions made online, than at brick-and-mortar stores because the customer cannot physically hold the product.

In your major store franchises, you will find the return policy clearly posted on a large sign by the registers and at the customer service desk.  An abbreviated version of the return policy is also written on a customer’s receipt.

On e-commerce websites

  • Display a link on every webpage to your return policy.  Most online stores, such as AppleStore.com, have the link at the bottom of the page.
  • If you have a long legal description of your return policy, create a summary section with key information and post it above the legal description.
  • Include information about how shipping is handled for the returned item.  Do you pay for the shipping of the returned item?  Do you send a replacement item before you receive the returned item?  Do you include a shipping label in the the box with the replacement item?
  • When shipping the product, include on a piece of paper or on the receipt your return policy.
  • Train the staff that answers well how to handle returns and, more importantly, exchanges.  Use scripts and training sessions to run through different scenarios.

Example: A Return with L.L.Bean

I purchased a cross country ski package for my husband two years ago from L.L. Bean for Christmas.  It turned out the boots were too small.  I called L.L.Bean customer service.  The representative explained their return policy and immediately ordered replacement boots for me.  My credit card was charged for the replacement boots.  I would be credited for them when L.L. Bean received the boots I was returning - minus the cost of shipping the too-small boots back.

The package with the replacement boots included a shipping label I would use to return the other boots.  To return the boots that were too small, all I needed to do was pack the boots in the packaging the replacement boots were in and adhere the new shipping label and take it to the post office.

Would I use L.L. Bean again even though I had to pay for the shipping of the returned item?  Absolutely.

Why?

  • A replacement was sent immediately.  I didn’t have to wait until I returned the original item.
  • Customer Service that was friendly and could easily tell me how the exchange was done.
  • A shipping label for the returned item was included with the replacement item.  There were two labels:  one for FedEx, one for Postal Service.  This allowed me to decide which method would be easier.
  • The ability to use the same packaging that the replacement item came in to return my item.  All I needed was tape to close the box.