What do the regulations say about e-commerce return policies?
If you are an entrepreneur who runs your own online store, you have a number of responsibilities related to honoring returns. Let’s discuss them in brief.
Right of withdrawal
Any consumer who makes a purchase online (or off-premises – for example, at a trade show or other event) is guaranteed by law the right to return the purchased goods within 14 days (Law of May 30, 2014 on Consumer Rights). He does not have to give a reason or explain the circumstances in any way. It is enough for him to make up his mind. The seller’s obligation in this situation is to refund the purchase price of the goods.
If you don’t ensure that the customer receives all the information regarding the return, it can expose your company to higher costs.
Example:
Mr. Gregory did not include information on the return policy on his online store’s website. The customer can apply in such a situation:
- refund of the amount paid for the returned goods themselves,
- reimbursement of the cost of returning the goods to the store.
From the seller’s perspective, it is particularly important to inform the consumer about the right to withdraw from the contract. Its absence can result in an extension of the withdrawal period by up to 12 months. Thus, the customer will be able to return the goods without giving a reason within 12 months and 14 days from the date of purchase.
Important!
You can correct your mistake by providing the customer with information on return periods. From the moment they are informed, the customer has 14 days to cancel the contract.
How do I return goods purchased online?
Customers who intend to return goods should provide the seller with a statement of withdrawal from the sales contract. They can do so by letter, using the online form (if available) or using the model statement that the OCC provides on its website.
However, it is increasingly common practice for the seller himself to include a return form with the shipment. This carries two strong advantages. First: customers interpret such a gesture as goodwill on the part of the seller. This means that he is not trying to hinder the enforcement of consumer rights. Second: the return form attached to the goods is a great place to inform the customer of all the rules regarding withdrawal from the contract – so as to leave no room for guesswork.
What can’t the customer return?
There are exceptions to every rule, and this is also the case this time. Some products have been exempted from e-commerce return regulations.
Thus, the customer cannot return, among other things, goods that were manufactured to his specifications or that were customized and personalized. This category includes custom-made products, customized furniture, personalized gadgets, etc.
Another group of products that are not covered by the general return rules are sealed goods whose packaging has been opened. These include some medicines and other medical devices, cosmetics, food, etc.
Effective returns management at a glance
Now that you know what your responsibilities are as a seller, it’s time to familiarize yourself with what e-commerce returns management actually consists of.
As part of returns management, representatives of the online store perform all activities related to the handling and processing of returns. They are:
- Registration and acceptance of returns,
- Assessment of the condition of returned products,
- Receiving goods into the warehouse,
- forwarding them for further distribution,
- Disposal or recycling of products that are not suitable for sale.
Why optimize returns management in an online store?
From a business perspective, thoughtful and efficient returns management fulfills three important objectives:
Limiting losses and reducing costs
Since customers will be returning goods anyway, it is in the store’s best interest to get them through the process as smoothly as possible. This will ensure that the goods are quickly returned to the store and can be put back on sale (assuming their condition allows it).
Gaining information about products and customers
A customer returning an item may have various reasons for doing so, which may or may not be shared. Learning about them can be crucial in terms of continuing to sell the product (especially if the returns are recurring).
Building relationships with customers
People who want to take advantage of a refund expect, above all, hassle-free service and a quick turnaround. By accommodating expectations and making it easy for consumers to exercise their rights, you build the image of a company that respects its customers and their time. As a result, they are more likely to return for future purchases – knowing that they can count on their case being handled efficiently if necessary.
Reasons for returns – identification and action
One of the most important goals of returns management is to gain detailed information. For example, on the reasons why customers choose to return. Each of these can be very important information for your store. Among other things, it’s on their basis that you can build your sales strategy, decide on expanding your assortment, and improve the customer experience.
The most common reasons for returns are:
- Visible differences between the description and/or pictures and the actual product. These differences usually include color, dimensions, the quality of the product’s material, etc. This is particularly important in the context of decorative products and clothing.
Tip: Make sure the photos reflect the actual appearance of the products. - Differences between the size chart and the actual dimensions of the product. This is especially important when buying clothing and footwear – an ill-fitting size makes the customer uncomfortable with the purchased product, making him decide to return it.
Tip: verify the size charts provided by the manufacturer, include information about the fact that the products may actually have slightly different dimensions than those stated by the manufacturer
. - Damage and manufacturing defects. If ordered products have arrived damaged or found to be defective, customers can complain about the goods, requesting an exchange for a full-quality product, or return them – for example, if they become concerned that the defect encountered turns out to be a factory defect and will recur in the next copy.
Tip: an important part of returns management (or rather, returns prevention) is the safe packaging of shipped products. This is the basis of a well-planned logistics process. The better protected the goods, the less chance there is for returns due to damage.
It is also worth monitoring cases of manufacturing defects reported by customers. If a product is returned repeatedly due to poor workmanship or defects that prevent standard use, it is worth considering withdrawing it from the store’s offer and finding another one that meets customers’ expectations.
These, of course, are not all the reasons that customers may have for returning purchased goods. Also, one should not ignore the fact that sometimes the customer… just frowns. It also happens that the purchased product was intended as a gift, but turns out to be misplaced or repeated. In such a situation, it remains to quickly handle the return and not bother too much about it. Such a return is worth noting for statistical purposes, but focus on those causes of returns whose occurrence can be eliminated or at least reduced.
Returns management: a step-by-step process
Now let’s go through the process of managing returns – starting from the notification until the withdrawal of funds.
Step one: report the return
At this stage, the customer decides to return the product and informs the seller. To do this, he uses almost any form of communication – from an online form, an email or a phone call, to a personal visit to a stationary store.
As we have already mentioned, it is a good idea to make the customer’s life easier and include the appropriate form in the shipment or inform about the possible options that will facilitate the return.
Step two: send the product back
At this stage, once you have received the return request, all you have to do is wait for the package with the returned product to be shipped by the customer and arrive back at the warehouse.
If you want to go green, make sure that the packaging in which you ship products from your store can be reused. A cardboard envelope or box that is easy to open and reseal will certainly serve this purpose better than tightly wrapping the product in stretch film.
You can also make it as convenient as possible for customers to send their returns – for example, by generating return labels on the store’s website and sending the parcels in the parcel machine.
Remember, too, that you need to anticipate handling returns in advance and establish cooperation with courier companies or courier brokers – this way your customers’ returns will reach your warehouse without hindrance.
Step three: inspection of returned products
When you pick up the shipment, you must inspect the goods, assess their condition and qualify them for resale, repair, disposal or recycling.
Depending on the outcome of the inspection, you must take the next steps:
- if the product is diverted for sale, it is necessary to re-enter it in the records and update the inventory,
- if repairs are needed, transfer the product to an internal or external service center, and then follow the steps as for referral for sale,
- when the product is only suitable for recycling or disposal, follow the regulations.
Step four: refund processing
Once all the other steps have been processed and the customer’s application has been successfully verified, all that remains is to make the refund. Remember to follow the law in this case, the agreement between your company and the customer, and your store’s return policy – exactly in that order.
Optional step: enter the return data into the internal system
We discussed this at greater length in an earlier section of the text, so now we will just remind you that further optimization of the returns management process requires analyzing the reasons and circumstances under which customers return products.
Summary – managing returns in an online store?
When planning your store’s return policy, keep in mind that the provisions of the Consumer Rights Act and the Civil Code are the most important. Make sure that your internal policies do not conflict with them.
Also, make sure that your store’s employees – especially those who have direct contact with customers – are well versed not only in the store’s policies, but in the relevant regulations. Guiding customers professionally through the process of returning goods can be the key to building a strong relationship in the future.
