NFIB

Reviewing Your Return Policies
03/ 22/ 2002

If you own a retail store or e-ommerce Web site, you probably already have an established return policy. But with a new year beginning, it might be a good idea to review and revise your policy. In today's Workshop, Jeffrey Moses provides information on widely used features included in return policies. Reading through these ideas may help you know what to consider when updating your own policies.

Return policies should always be presented to customers at the time of sale. They may be written on receipts or separate forms. On ecommerce sites they are usually part of the ordering information. Retail stores can post their return policy on the counter near cash registers. If you don't already have your policy in writing, you should do so as quickly as possible.

Return policies should always have a maximum time allowed for returns, which can be anywhere from 24 hours to 60 days or more, depending on your product. While 30 days is the norm, some items such as household appliances, furniture and electronic equipment may require return policies up to six months or a year.

If your policy is to extend store credit or make exchanges rather than give cash back for returns, make sure that customers are informed of this at the time of the sale. Telling customers about it upfront is the best way to avoid irritating those who might assume that they'll receive cash back. Many retail stores issue credit instead of cash, and people are becoming accustomed to the practice when purchasing from smaller shops.

It's important to inform customers about what they need to supply when making a return. For instance, they may need to return merchandise in the original box, along with a receipt. Also, you may want to require that returned merchandise be unused.

Always list items that are not able to be returned. Usually, stores won't allow customers to return things like food, videotapes, CDs, software and monogrammed or similarly personalized items.

If customers decide to return items, make it easy for them. Provide a simple-to-use form that your employees can quickly fill out when returns are made. If you decide to give credit or exchanges instead of cash back for returns, prepare a form that can be given to customers who have to come back another day to shop for a replacement item.

Using tracking numbers of receipts or product UPC symbols for your sales will help your employees determine whether the item was really purchased from your store and when the sale was made. It's usually better to require a receipt for a return, because it makes things much simpler for your employees and ensures that a customer isn't making a fraudulent return.

Train your employees to check for damages to items brought in for return. Your written policy should state that items damaged by customers are not eligible for store credit, exchanges or cash back.

One of the best ways to customize your return policy is to continually check the policies of other businesses, including your competition. Direct-mail catalogs always have well-defined policies, usually placed on the order page. When you see a particularly salient point in another company's return policy, start using it as part of your own policy. Return policies aren't patented or copyrighted, so take advantage of any tidbits of information you come across.

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