Product returns are inevitable for retail businesses. Not every shopper will love their purchase. Some customers even purchase to return them.

Whatever the cause, returns have a negative impact. Every product return poses a disaster for a business. eCommerce merchants on platforms like Shopify are scathed the most. A publication by the NRF indicates that shoppers return ~17.6% or $247 billion of merchandise purchased online. Meanwhile, the return rate for pure brick-and-mortar businesses is 10.02%.

A well-crafted return policy for Shopify stores enhances customers’ shopping experience. It streamlines operations. It helps protect your business, especially during peak seasons.

Again, a Shopify return policy seamlessly integrates with a privacy policy and refund policy under the broader Shopify store policies framework.

What is a Return Policy for Shopify Stores?

A return policy for Shopify stores is a set of predefined rules and procedures guiding product returns. This document outlines requirements, timeframes, and processes for merchandise return when customers are dissatisfied with their purchase. It defines the terms for handling transaction returns and refunds.

A return policy helps manage customer expectations and ensures a seamless returns process. Without it, you'll have to make return decisions case-by-case, which is challenging and time-consuming.

Generally speaking, an eCommerce return policy sheds light on critical return rules, such as the return window, merchandise return shipping costs, restocking fees, and sales-final items.

Why Is Shopify Store Return Policy Vital?

A Shopify store return policy is a potent customer acquisition tool. Research shows that 60% of online shoppers review a merchant's return policy before transacting. And 92% of first-time customers will likely return if they have a smooth returns experience.

That's why savvy eCommerce merchants promote free, seamless, stress-free return policies to boost sales. Failure to display such palpable customer-centricity leads to lost sales; customers won’t transact with your business. Even after making a purchase, customers are unlikely to buy again if the return process is complicated.

Furthermore, having a transparent, customer-focused return policy for Shopify stores minimizes customer churn. It supports other vital business metrics like retention rates and Net Promoter Scores.

Also, an effective Shopify store return policy prevents customer chargebacks resulting from buyer's remorse or delay in dispute remediation. For example, our internal data shows that many buyers have filed Item Not Received chargebacks when merchants have no clear return rules.

Accepting transaction returns sucks. But the benefits outweigh the costs if you have a well-crafted return policy.

Creating an Effective Return Policy for Shopify Stores

Standardizing your return management process with a clear and consistent return policy for shoppers isn’t just the right thing to do. It's the smart thing to do! It makes the process less stressful.

But how do you create an effective Shopify store return policy? Let’s talk about that.

How to Write Your Shopify Store Return Policy

Your eCommerce logistics and products will likely influence your Shopify return policy.

For example, if your eCommerce logistics involve high shipping costs or special product handling, you might implement a return policy that limits returns to ensure profitability. Furthermore, if you sell perishable goods or underwear, your return policy might restrict returns to ensure freshness and quality. Conversely, if you sell electronics with high restocking fees, your Shopify store return policy might include a restocking fee covering potential depreciation and ensuring customers return items in good condition.

That said, the ideal eCommerce return policy should address fundamental questions regarding return time limit, product condition, refund process, return shipping costs, and final sale items. Let’s examine these elements further:

1. Return Window: Highlighting a predefined timeline for customers to submit return or exchange requests limits vulnerability. Businesses typically offer return windows of 14, 30, or 90 days from the transaction delivery date. Companies like Zappos have more extensive return windows; they allow a 365-day return window.
2. Returnable Product Condition: Indicate the state in which products can be eligible for return and refund. Ideally, the item must be unused, in its original packaging, and with any tags or accessories intact. For example, Chargeflow client 700Feet's return policy requires "all shoes to be returned in their original shoebox," and "packaging the shoebox inside another protective box or bag."
3. Refund Process: Since your return policy often fuses into the refund policy, clarify how you process and issue payment refunds. This can be a store credit, a full cash refund to their original payment method, or a mixture of store credit and cash.
4. Shipping Policy: Explain your policy on return shipping costs and how customers can initiate return shipments to you. Businesses generally provide free return shipping, charge a flat return shipping fee per return, or require customers to purchase their return shipping label. You can also specify your preferred carriers and the shipping timeline.
5. Final Sale Items: Every business has specific products or collections that are ineligible for returns. These are called final sale items. Customers are informed at checkout that final sale items cannot be returned or refunded. Shopify says you can include multiple products or collections in the final sale expectations, but not both.

While you can effectively write your return policy for Shopify stores from scratch, Shopify has a free policy generator you can use. That helps you streamline the document to their standards.

How to Generate Shopify Store Return Policy from a Template:

• Go to Settings > Policies from your Shopify store admin.
• Select “Return and refund policy.”
• Click “Insert template” to generate a default template.
• Use the rich text editor to style and format your policy, and include links and images. You can also make necessary changes in a Google Doc.
• When satisfied, click “Save” to publish your policy.

If you don't have a separate refund policy, this document covers return and refund functions. Once you add your return and refund policy, it will automatically appear in the footer of your checkout pages. The next step is to ensure customers can see and follow your return policy.

Notable Shopify Return Policy Best Practices

A clear and customer-friendly Shopify return policy builds trust. It reduces purchase anxiety and enhances brand reputation, leading to higher retention rates.

Here are notable best practices to help you make the best of your eCommerce return policy:

1. Use your return policy to convert returns into business opportunities.

Minimize costs associated with returns by encouraging exchanges, selling product warranties, offering store credit, and leveraging upselling or cross-selling opportunities during exchanges. Ensure customer needs align with long-term revenue objectives.

2. Help customers quickly find your Shopify store return policy.

Most shoppers review merchants' return policies before transactions. Insert your Shopify return policy in prime locations like the website footer, marketing materials, FAQ page, product page, order confirmation email, website banner, and chat for easy access. Refer to our refund policy guide for tips on placing your return policy in strategic places on your website.

3. Use your personal address to receive dropshipping returns.

If you dropship on Shopify and your suppliers don't accept returns, consider accepting returns to your address, and re-ship products, assuming they're in good condition. That means you need a physical US address. You can resolve manufacturing defects with your supplier.

Don't forget to factor in international shipping rates. High return rates will offset your profit margin. And some customers might not want to pay for return shipping costs.

4. Turn on self-serve so customers can submit product return requests directly in your Shopify store.

Automated return rules can be productive in managing return requests. Shopify will apply your return rules when customers place orders. These rules determine return eligibility based on predefined metrics and display estimated refunds for return requests. Return rules ensure customers can only request returns for eligible items, giving you better control over return requests and enforcing your return policy for Shopify stores. To create return rules:

1. Go to Settings > Policies from your Shopify Store admin.
2. Click "Manage" in the "Return rules" section.
3. Select your preferred return time limit in the "Return window" section.
4. Select how to apply return shipping fees in the "Return shipping cost" section. Enter your shipping cost if you opt for a flat rate for return shipping.
5. If you plan to charge a restocking fee, select "Charge restocking fee" and enter a percentage.
6. If you want to highlight Sales Final products or collections:
   • Select Specific collections or Specific products in the "Final sale items" section.
   • Click "Add final sale item" or "Add final sale collection." ‍
   • Select products, product variations, or collections and click "Add."‍
7. Click "Save," and select "Turn on" to finalize.

Get more details about self-serve returns via Shopify:

How to Manage Returns During Peak Seasons

Black Friday, Cyber Monday and the holiday season will soon be upon us. Plan for returns as you strategize for more traffic and higher conversions. After all, this is when your customer service will be tested the most. And 96% of consumers say customer service impacts who they buy from and how often they purchase.

Here are some ideas for managing returns during peak seasons.

• Anticipate the worst-case scenario. The average retailer spends 8.1% of total sales on reverse logistics. You can plug this gap by reviewing every step of the customer journey. Pinpoint trends in commonly returned items, fine-tune product descriptions, buy from your store to review your quality assurance indices, refine the shipping process, and consider increasing the return window.
• Use return rules to streamline processes. 81% of customers want more self-service, you can automate the return system to speed up processing and reduce manual workload. Return management tools like AfterShip can also come in handy here.
• Issue shipping labels to minimize liability. Shopify Shipping automatically sends a return shipping label to your customer immediately after they create a return request. Merchants also benefit from discounted carrier rates for outbound and return. They charge for return labels only when scanned.
• Keep an eye on inventory levels. Tracking inventory levels during peak season should be standard practice. It helps you maintain product accuracy, fulfill orders correctly, and enhance customer satisfaction. This ultimately reduces return rates.
• Act on refund requests immediately. If you agree to refund the customer, act on it. Otherwise, they might file a chargeback with their bank to reclaim transaction funds.

Discover effective strategies for minimizing holiday chargebacks and preventing losses; I recommend you read the piece on excellent order fulfillment practices if you haven't already done that.

Write the Best Shopify Return Policy. Boost Your Sales!

The goal of a return policy for Shopify stores is to make the return and refund process hassle-free. Studies show that merchants reap significant rewards when they provide customer-centric return policies. They get brand loyalty and higher conversion rates. Boosting customer retention by just 5% can increase profits by 25% to 95%.

Yet, writing an excellent, consumer-focused refund policy can be a lot of work. If you don’t get it right, consumers will abuse it.

You want to ensure your eCommerce store return policy benefits the customer while maintaining long-term sustainability. To achieve that objective, your policy must clarify the return window, returnable products, refund process, return shipping costs, and final sale items. For more insights on creating comprehensive store policies, check out previous guides on privacy policies and refund policies for Shopify stores.