Most retailers don’t give their return policy a second thought. This is a mistake.
A transparent return policy builds trust, reduces disputes and protects your bottom line. It’s even more important for cross-border retailers, whose international customers may have different expectations from local ones.
In this article, you’ll learn what your returns policy needs to include, how to create one and what you can do to optimise your returns process.
What is a return policy?
A return policy is a set of rules that outlines how customers can return goods and request refunds and exchanges.
It typically takes the form of a page on your online store and tells shoppers:
- Whether they can return unwanted items
- How long they have to request a return
- Who pays shipping costs
- Whether returns are cash, credit notes or exchanges
A transparent returns policy is an essential part of online retail that sets expectations, reduces confusion and comes with a host of other benefits we’ll discuss next.
Why have a return policy?
Under UK law, retailers are required to offer returns in certain circumstances, such as when a good is faulty or if a consumer has purchased an item without seeing it.
In most other circumstances, returns aren’t legally required. But customers still expect them anyway. A clear return policy eliminates confusion and clearly outlines what customers can return and how they can return it before making a purchase.
Among other things, a strong return policy:
- Builds customer confidence by clarifying their rights and showing what the process looks like
- Reduces the number of return-related enquiries sent to your support team
- Discourages fraudulent returns
Ultimately, a strong returns policy will make customers more likely to buy.
How to write a return policy
If you’re creating a new return policy from scratch, here’s what you need to do:
1. Understand your legal obligations
In the UK, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 and the Consumer Rights Act 2015 set minimum requirements for returns.
These include:
- A 14-day cooling-off period from the date of receipt if customers buy online or by phone
- A minimum 14-day return period
- A 30-day period to return faulty items or goods that are not as described
Failing to comply can lead to enforcement action, financial penalties and reputational damage.
2. Decide your approach
Beyond the statutory minimums listed above, there’s no limit to what you can offer customers in a return policy.
Some brands like to be as generous as possible to increase sales. Costco famously doesn’t set a limit on returns for most items.
If you want to follow in their footsteps, you could offer:
- A longer return period, like 30 or 60 days
- Free return shipping
- In-store returns if you have a physical location
- Multiple return methods, such as parcel lockers or at-home pick-ups
You don’t have to be generous to boost sales, however. Many stores adhere to the minimum requirements and do perfectly well.
Sports Direct, for example, requires customers to pay for postage and doesn’t allow customers to return online orders to their stores.
3. Write your policy wording
Once you’ve decided on your returns strategy, it’s time to write your policy.
Keep language customer-friendly and straightforward to avoid misunderstandings. Short sentences, plain English and clear headings are a must.
Here’s what to include in your return policy:
- Return eligibility and conditions. Explain which products customers can return and any conditions they must meet. For example, items typically need to be unused, in original packaging and with all labels attached. Common exclusions include personalised items, perishable goods, sealed health and hygiene products, and digital downloads after they have been accessed
- Return timeframe. Your policy must clearly state the exact timeframe within which customers can request and complete returns. UK law requires a minimum 14-day cancellation period for distance sales, but many retailers extend this to 30, 60 or even 90 days to improve customer satisfaction. Be specific about whether the timeframe starts from the purchase date, delivery date or when the customer receives the goods.
- Refund and exchange options. Be transparent about any differences between refund options for different types of returns. For example, you might offer full refunds for faulty items but only store credit for returns made due to a change of mind.
- Return process and instructions. Provide step-by-step instructions for how customers should initiate and complete returns. These should include how to request a return, what information to provide and shipping instructions.
- Shipping costs and responsibilities. Be upfront about who pays return shipping costs. Under UK law, you must cover return shipping for faulty or misdescribed items, but you can charge customers to return items they no longer want. If you offer free returns as a competitive advantage, make this prominent in your policy and marketing materials.
- Processing times. Set realistic expectations about how long each stage of the returns process takes. Include timeframes for responding to requests, processing returns and issuing refunds.
- Contact information. Tell customers how to reach you with returns-related questions. Provide email addresses, phone numbers and live chat options. Consider having dedicated returns support contact details separate from general customer service.
Now you’ve written your policy, let’s discuss where to publish it. The key is making it as accessible as possible.
Where to put a return policy
Customers shouldn’t have to search hard to find your returns policy. Place links to it across your website, including the following locations:
- Your website’s footer. Add a “Returns and refunds” link at the bottom of your site so it’s accessible from every page.
- Product pages. Summarise your policy or a link to the full document on product pages — especially if a long returns policy is a USP.
- Checkout. Place a link on your payment page to give customers clear expectations before they purchase.
- Order confirmation emails. Include a helpful link in receipt emails so customers can refer to it without visiting your site.
The easier it is for customers to find your return policy, the more confidence they’ll have in making a purchase. You’ll also receive fewer customer support requests.
How to make the most of your return and refund policy
Your returns policy should be so much more than a customer-facing document. It’s an opportunity to differentiate yourself from your competitors, win new customers and reward loyal shoppers.
Here are five best practices to upgrade your process and turn returns into a competitive advantage.
1. Turn returns into revenue with exchanges and store credit
Returns don’t have to mean a hit to your bottom line. Encouraging customers to opt for exchanges or store credit rather than refunds can actually increase revenue.
One method to encourage customers to accept store credit or exchanges is by waiving delivery fees or offering a small discount on their next order. Promoting in-store returns can also lead to repeat purchases.
2. Offer multiple return methods and convenient drop-off options
Increasing your returns window isn’t the only way to differentiate your offering in competitive markets. You boost customer confidence and increase orders by giving customers a wide range of return options, including:
- Postal returns
- Parcel locker drop-offs
- In-store returns
- Doorstop collection
Many of these methods are more convenient for customers while reducing costs for brands. So you get happier shoppers and a healthier bottom line.
3. Proactively prevent avoidable returns
You’ll never eliminate returns completely, but you can avoid a surprising amount by improving the pre-purchase shopping experience.
Upgrading product pages with high-quality images, videos and size guides to give customers a better understanding of the items they’re about to buy. Because size issues are a leading driver of returns, it may be worth investing in interactive sizing tools where possible.
4. Minimise delays with automation and technology
A smooth returns process makes for a happy customer. Implement an online self-service portal that lets customers request orders, print labels and get status updates. It won’t just speed up the process and minimise friction, it also reduces strain on customer support teams.
5. Use data to optimise and refine your policy
Constantly track return patterns, reasons and customer feedback. It can help you pinpoint items that need a new product page or are causing more hassle than they’re worth.
It can also help you find serial returners, those who place very large orders with the intention to return most or all of their purchases. You don’t have to blacklist these shoppers — although you can — but you may want to increase your fees or offer unlimited returns for a single annual fee.
Simplify cross-border returns with Pro Carrier
It’s one thing to have a returns policy. It’s another thing to follow through and give your customers an exceptional return experience. That’s where Pro Carrier comes in. Our cross-border returns service aims to make international returns as easy as the initial delivery.
We simplify the process with:
- An all-in-one portal that lets you and your customers manage the returns process on any device and from any location
- A network of final-mile carriers that offer a wide range of return options
- A duty drawback process that recoups any duties that you paid on import
We even inspect your return products, folding, bagging and relabelling before returning them to you. That way, they're ready for immediate resale.
Read our case studies or speak to one of our experts to learn how to turn returns from a loss-maker into a strategic advantage.