The return policy is one part of a small business that has shown to be critical in preserving a positive relationship between a company and its customers. Consumers need to feel comfortable with their purchases, and companies need to safeguard their products; thus, return policies are essential for both customers and company owners. Consumers should feel safe knowing that if something goes wrong with their purchase, they can return it for a full refund.
However, as a small company owner, you must guarantee that consumers do not take advantage of the policy by returning defective or used items.
“As a business owner, you’ll also want to weigh the cost of returns and if that includes shipping rates,” said Elie Y. Katz, President and CEO of National Retail Solutions (NRS). “If you are losing money on returns, you want to consider that when creating a policy for your small business. The perfect policy will balance the needs of the business owners and consumers, maintaining customer loyalty while safeguarding your brand.”
Evaluate Your Return Situation
It would help to assess your company’s return conditions when developing a good policy. You may need to ask yourself: How many exchanges have you received so far? How frequently do customers exchange items? Look at which goods are getting the most returns and figure out patterns. When developing a policy, customer happiness is a critical factor to consider. A point of sale system can help keep track of your exchanges and calculate how much it costs to exchange and sell your products.
Update Your Policy Based on Current Data
Once you’ve collected data on the exchanges, you can create the most effective policy for your small business. “Look for areas in your company where you can improve and alter your policy,” Katz said. “Is one specific product, for example, often being exchanged? If that’s the case, is it due to poor product quality or careless marketing? When selling products online, make sure that the photos and descriptions match the actual product so that the customer knows exactly what they’re getting. If you find that your current policy is causing problems, you may want to modify it to something that would make customers feel more at ease when purchasing a product from your company.”
To collect data on sales and returns, you’ll also need a good payment system and an intuitive checkout solution. A store’s point of sale system is the heart of the business. It tracks your inventory and sales to see exactly what customers are buying. The system also comes with a receipt printer, making returns for customers simple and efficient. The POS makes purchases and returns fast and easy, giving your customers a seamless checkout or return experience.
Tweak the Policy if Needed
A return policy is something that may be examined and altered regularly to improve your company. “You may put a new policy to the test and collect data to see if it works for your company. If you find that this new policy is more accommodating towards customers and see more foot traffic then stick with this policy. You can always change your policy whenever you want as well. To double-check if your policy is meeting your customers’ needs, giving out surveys is another excellent technique to see how they feel about your policies.” Katz said. “If you don’t want to lose product sales/profit, you can provide choices like exchanging items for store credit in your policy. Customers will be pleased and want to return to your company if you have a policy that caters to their needs and wants. Just be careful not to be too lenient, or customers will take advantage and return broken and damaged items.”
To avoid this, make sure you research other competitors’ policies on returning items. That way, you can see what they are doing to handle the situation, and you can do it for your own company.
Overall, having a policy in your business is key to guaranteeing that your company runs smoothly.
