There are a variety of reasons why a customer may choose to return a product, for example, the goods were faulty, it was the wrong item or they simply changed their minds. Making your return and exchange processes as simple as possible will help to foster customer loyalty as well ease the administrative burden.


Before writing or updating your returns policy, it is a good idea to find out the terms of your competitors' policies. If you decide that one of your selling points is to have a “generous” returns policy, then make sure it really is.

When conducting your research, consider the following questions:

  • Do your competitors take back all merchandise?
  • What are the time limits for returning goods?
  • Is there a special return form or authorisation number?
  • Is a receipt required?
  • Is there a restocking fee?
  • Do they pay for the return shipping, or the customer?
  • How do they handle the return of gifts?
  • Do they offer exchanges?

Writing your policy

Use the research you have gathered on your competitors to write a returns policy that is suitable for your business.

Ensure that your policy:

  • Remains short and simple to understand
  • Spells out the exact conditions that customers must meet to return goods e.g. having a receipt, making a return within a certain timeframe
  • Provides clear instructions on how to return goods, including gifts
  • Explains how to qualify for exchanges and/or refunds e.g. goods unopened or unused?
  • Provides contact information and hours of opening

Communicating your policy

Your returns policy should be immediately accessible to your customers. The most common ways of informing customers of your policy is to include it on your website, print it on receipts, display it in your shop windows, or include a printed version in all packages sold or shipped.

Learn from your returns

Ensure that you keep a record of what items are returned and why, this will enable you to:

  • Identify and monitor customer return trends
  • Fix any faulty goods
  • Sharpen your business sales and delivery system
  • Take steps to ensure future satisfaction