What is a refund and return/exchange policy?
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.