Do you get a lot of abandoned cart notifications? You know your product has the “IT” factor, and you have great reviews… but many customers still leave without buying.
You may need to check your returns and exchanges policy. 81% of shoppers check that before purchasing from a new store. That’s a lot of lost revenue.
But here’s the problem: Too-vague and too-generous ones attract serial returners. But then, strict policies scare away other customers who want assurance. So, how do you find the sweet spot?
That’s what we’ll show you in this article. We’ll cover:
- How return policies help you sell more
- The three main elements you have to cover
- How to write a policy that doesn’t put people to sleep
- Some of the best tips you can apply
- A special tool that makes the whole process way easier
Let’s start with how your policy actually affects your sales.
The Strategic Value of Your Returns Policy
Your returns policy has the power to convince hesitant shoppers to make a purchase. It’s like a love letter you show to your customers to say, “We’ve got your back if this purchase doesn’t work out.”
Imagine that a customer named Rachel wanted to buy a high-quality (and quite pricey) tote bag worth $150 from your store. She loved your designs. But she was worried that the canvas might feel cheap in person or that the bag would be smaller than she expected.
Without a good returns and exchanges policy, these doubts would have made her close the browser tab and look elsewhere. But because you had a solid one, Rachel’s worries disappeared. She knew she could send it back to you if something was off (and that confidence is what got her to click “buy now”).
What the Data Shows About Return Policy Impact
There are many buyers like Rachel. One study found that 55% of shoppers abandon a purchase because the return policy wasn’t convenient enough. Wow. That’s more than half of the potential customers walking away.
But here’s what’s more surprising. The same report showed that 73% of people said a poor return experience would stop them from shopping with that brand again. You know, no one wants to feel “scammed” again. That’s why the returns policy matters.
And if you nail it and provide 5-star-worthy customer service, you might get more clients. Research shows that 71% of customers who have an amazing brand experience will recommend you to their friends and family.
That’s free marketing right there!
Essential Elements of a Clear Returns and Exchanges Policy
Now that you know the real value of a return policy, let’s talk about what makes it work.
The best return policies cover these three areas: eligibility and conditions, refund options, and return shipping costs. Let me explain them in detail.
1. Eligibility and Conditions for Returns
Eligibility and conditions are your boundaries when accepting returns. They are your shield to prevent every “change of heart” from turning into financial loss.
You can get some inspiration from these popular stores that apply clear conditions:
- Amazon: Accepts returns within 30 days for items in original condition. But it excludes personalized items and opened product boxes.
- Target: Offers generous one-year returns for their own brand items (with receipt). But restricts electronics to 30 days and mobile phones to just 14 days.
- Apple: Keeps it simple with a 14-day return rule for eligible items. But they won’t take back opened packages or gift cards.
PRO-TIP: Be clear with your conditions upfront (yes, right on top of your site). Don’t hide them in fine print where customers might miss them.
But what is the best timeframe for returns? Good question!
Most customers (63%, to be exact) think that 30 days (four weeks) is a fair and reasonable window to make return decisions and check their items. We suggest you follow this or provide a longer timeframe to appease your customers and give them peace of mind.
2. Refund and Exchange Options
If a customer decides to return your product, you must offer a solution to prevent negative reviews and preserve the relationship. You can either resort to refunds or provide exchanges.
For refunds, you can offer full, partial ones, or store credit (or discounts). Here’s the difference and when they are most useful:
- Full refunds: Best for items in perfect condition. For example, your customer returned an $80 unused sweater (with the tag still attached), and you processed the full amount back.
- Partial refunds: Good for damaged or incomplete orders. Suppose someone received a jacket with a missing button. You might refund $60 instead of the full $120.
- Store credit: Great when you want to keep revenue in your business. Imagine one of your buyers returned jeans without the original receipt (but you’re 100% sure it’s your product). You could offer them a gift card instead of cash.
Exchanges work a bit differently. You don’t give them money, but offer a replacement. Some common options include size exchanges (small to medium), color swaps (green to orange), or product switches (shoes to duffel bag). It’s a great option if the return reason is about fit or preference and not product quality.
3. Return Shipping and Associated Costs
Who should shoulder the return shipping costs? You, your customer, or… should we flip a coin instead? The data show that customers prefer the first option. About 79% of shoppers say that it influences their buying decisions.
There are three return labels you can choose from:
- Pre-paid labels: You cover the cost upfront (most customer-friendly)
- Customer-generated labels: They print and pay from their own account (budget-friendly for you)
- Deducted from refund: You provide the label, but subtract shipping costs from their refund as their payment (middle ground)
But there’s another return trend that’s getting attention: they call it BORIS (Buy Online, Return In Store). Almost half of retailers have seen more customers bringing their online orders back to physical stores instead of shipping them. It’s instant. And they don’t have to think about the long return process.
If you want to get plus points with customers, it’s best to offer pre-paid labels or BORIS. But you have to think about it carefully and set your conditions.
Writing Your Returns and Exchanges Policy for Clarity
Okay! Time for the writing part.
You have to remember these three things to create a customer-approved return and exchange policy: Make it easy to read, write in an empathetic tone, and include special cases.
Make it Easy to Read
Your customer is probably not Shakespeare. So, no need to use words like “whereupon” when talking about returns. Keep your language simple. And write like you’re talking to a friend over coffee (but remember not to cuss).
Also, make your policy scannable. No one has the time to read blocks of text, so work on those long paragraphs and keep them bite-sized.
PRO TIP: Sprinkle bullet points, tables, and headings to guide your customers. Take Amazon’s returns policy, for example. They used tables to clearly display refund timelines.
And, of course, don’t forget to mention “how” your customers can return items. Make it sooo visible (put it on top of the page) that they can’t miss it even if they blink.
For example, provide step-by-step instructions, include the requirements, and add a link to a return form (for online returns) or a store finder (for in-store ones).
Use an Empathetic Tone
Have you ever been treated a little… off by a staff member? I have. I returned a cute dress that didn’t fit me. I waited in line, and when it was my turn, the annoyed staff rolled her eyes. It wasn’t that bad. But it stuck with me.
That experience taught me how much tone matters, even if it’s written. Your customers might already be upset with what’s delivered. They need kindness and guidance (and not a lecture.)
Here are some examples of empathetic language you can use:
- “You’ve got 30 days from the date it arrives to see if it’s right for you.”
- “No receipt? No problem. Just reach out, and we’ll try to sort it out together.”
- “We get that this can be frustrating. Give us a call, and we’ll do our best to help.”
Cover Special Cases
As a store owner, you need to be ready with clear rules for tricky situations that don’t fit your standard policy. Your customers might send complaints if you handle them poorly.
For example, international returns often need longer time frames due to shipping delays and customs processes. In this case, you might allow 45 days instead of your usual 30.
Final-sale items should be clearly marked before purchase (think clearance shoes or custom-made products that can’t be resold).
If you’re handling damaged items, consider expedited processing since it’s not their fault. Lastly, gift returns without receipts may receive store credits (or discounts) instead of a full refund.
Additional Tips for Writing Clear Return Policies
Here are some pro-tips to help you create a policy that actually works:
- Start with a template: Look at your successful competitors. Then, customize it for your business.
- Test it yourself: Let you (or someone from your team) go through your return process as a customer. If it confuses them, it’ll definitely confuse your customers.
- Keep it updated: Review your policy every few months based on actual customer questions and complaints you receive.
Making Your Policy Accessible and Transparent
Writing a great return policy means nothing if customers can’t find it when they need it.
You want to make it as easy as possible for people to locate this information (trust me, frustrated customers don’t have the patience to hunt around your website).
Place your return policy link in obvious spots like your footer, checkout page, and product pages. Some great examples I found are from Nike and Zappos.
They both put return information right on each product page, so you know the deal before buying. Both companies make their policies super visible with dedicated help sections and clear links in their footers.
Plus, consider adding a simple FAQ section that answers common questions like “How long does a return request take?” or “Who pays for shipping?” Most people just want quick answers without reading your entire policy.
Simplify Returns and Exchanges with ParcelPanel
ParcelPanel Returns and Exchanges is an app we designed just for Shopify stores that want to set up and track their return process easily.
Our tool works on all the boring (and techy) stuff for you. You get a return page that matches your brand (100%). Your customers can choose how they want their money back, including a refund to the original payment method, store credit, or an exchange item.
ParcelPanel also helps you impose your return policy. For example, if someone bought a wallet from your store during the holiday season (final sale), you can set it as non-returnable. That way, it won’t appear on their return portal, and you won’t need to play the villain turning down their request.
And the best part? It has a free plan. You could try it all you want and only upgrade when it’s time to do so.
Check out some reviews from our users:
Conclusion: Turning Returns into a Positive Customer Experience
If you made it this far, you already have everything you need to start with your return policy. And it is not just an “average” one, but something that converts hesitant shoppers and keeps customers coming back.
The next step is putting it all together. Note that you can start with the basics: write in simple language, make your policy scannable, and cover those special cases that always come up.
If you want to bring your style and offer higher-quality returns and exchange experiences, install ParcelPanel Returns & Exchanges. You could also connect with our team to learn more about the tool.
