When you understand Why Having a Refund Policy is Crucial for Your Online Business is so important to the success of your business you won't only focus on the hire and now.

Why a Refund Policy is Crucial for Business

Having a refund policy for your online business is not the first thought or even the tenth when you decide to start your only business. The convenience, extra disposable income and adjustments for the additional boxes are most likely front of mind. However, as an online business owner, you know that customer satisfaction is the key to success.

Get that right, and in no time, you will have a warehouse or your very own bricks and mortar. Ways to ensure customer satisfaction is by having great photos, descriptions and getting the items out quickly. What is often forgotten in all the excitement is a clear refund policy.

So let’s take a few moments to review the benefits of having a policy so that you can reduce the risks of this dream ending in a nightmare

Boosts Customer Confidence

When customers shop online, they can’t see or touch the product and may be concerned about its quality or suitability. You probably may not realise the Consumer Rights Act 2015 takes this into consideration. You, as the trader, have a legal obligation to process a refund within a specified period.
There doesn’t have to be anything wrong with the product. They have the freedom to change their mind.  Conduct your own research. You will find that many online businesses offer a longer refund timeframe than that stated by law.
Knowing that they can inspect the item at their leisure and return the product if it doesn’t meet their expectations gives customers peace of mind and encourages them to click buy with you (rather than shop around for more favourable terms).
Moreover, having a refund policy shows that you stand behind your products and believe in their quality. This can build trust with your customers and create a positive image for your brand.

Reduces Returns and Chargebacks

Returns and chargebacks can be a headache for online business owners.  So you want to minimise that stress for yourself and your customer.  Being clear and transparent with a refund policy will save you from a loss in revenue.  Remember, you will have to incur additional payment processor fees.  Failing to be upfront about the process of returns can also damage your reputation.
Misery loves company, and bad news seems to travel faster than good news in retail.  Help yourself to reduce the number of returns, chargebacks, and bad reviews you receive.  Allow your customers to make informed purchase decisions and be satisfied with their products.
Being upfront with those you are trying to build a relationship with can reduce the likelihood of them returning the product or disputing the charge.
Did you know you don’t have to offer free returns?  But to spring this on the customer once they have decided they no longer want the item may be seen as underhand.  Especially when it can be highlighted any time up to the point of sale.  Have a refund policy accessible for your customers, allowing them to choose whether to read it.

It's time to get your house in order and stop being so tunnel-visioned on the now.

You’re no doubt juggling many things, so you can always book a Refund Policy Review. Send in what you are currently working with for an expert once over and get feedback on what needs changing, updating or correcting.

Improves Customer Experience

In today’s competitive online market, customer experience is everything.  A clear and transparent refund policy can improve the customer experience by making the return process smooth and hassle-free.
Take your cues from the policy and familiarise your team with it.  You can keep your customers informed by ensuring you are clear on the timeframes.  This is where you may wish to dabble in automation.  The smallest touch can demonstrate to a customer that you may be small but have an eye for detail.  They are more than merely transactional.
Customers appreciate businesses that make it easy to return a product if needed.  Put yourself in a stronger position by:
  • outlining the steps for returns in a document;
  • reiterating it during sales calls;
  • signpost anyone online to review it; and
  • don’t forget to mention additional fees.

When you’re open, transparent, and confidently speak about your policy, your customers can have a stress-free return experience.  This can result in positive reviews and repeat business.

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A refund policy for your online business is crucial to remain aware of your legal obligations.  It will boost customer confidence, reduce returns and chargebacks, and improve the customer experience.

Clearly communicating your refund policy on your website up to the time of purchasing and in order confirmation emails will ensure that customers know the policy.  It will give you peace of mind that this is a relationship built on trust.

Time is precious and therefore take this as a timely reminder, if you don’t take the time to plan for the untold future you’re going to get caught out.  Neither one of us want that so let’s get you sorted and not make this into a clean up exercise.

Book your Sip & Chat today.

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