In a majority of counties, there are laws that protect the rights of the consumers. These laws dictate the bare minimum of a refund and return policy that you have to abide by. Well-written refund policy can boost your sales and increase profits, while overly restrictive refund policy can scare potential customers away and cost you dearly.
Return and refund policy should typically address the following few points: Clearly state if returns, exchanges, and refunds are accepted by a company. The number of days customers have to return or exchange a product. List any products that may be exempt from returns. Outline any other requirements that customer has to meet to be eligible for a refund. SaaS companies often include information about prorated or partial refunds. For physical products, it’s a good practice to include some details about shipping charges in the event of a return.
Since refund policy is a legal agreement, it can help an online business in the instances when some of the customers claim their rights are not being respected. Let’s see exactly why you need a refund policy on your website.
In addition to the above, having this document on display has more benefits for the business. If people see clear return policy for an item, it will be easier for them to make an informed buying decision. It’s easier to convince someone to make a purchase when they have all of their questions answered, including those regarding refunds.
In fact, if you go and visit help pages on eBay, you will be able to read that this large company requires all stores to have this type of policy because items that come with refund policies tend to sell far better than those without.
Refund policy can also protect your interests by helping you to play it safe on the legal side. If you have informed the customers about your policy and it respects the minimums defined in the regulations of the business’ origin country, you don't have to be afraid of losing a case in court should a customer bring the problem to the court of law.
