What is a good return policy for a small e-commerce business?

As e-commerce continues to grow in popularity, more and more small businesses in Indonesia are looking to switch to selling online. One crucial aspect of running a successful e-commerce website is having a robust return policy in place. In this blog, we'll explore the importance of a return policy, tips on writing a good one and how DHL Express can make parcel returns a breeze for your e-commerce business.

Understanding the importance of a return policy for e-commerce

A return policy is a set of rules and guidelines that outline the conditions under which customers can return goods purchased from your e-commerce website. It is essential for maintaining customer satisfaction and trust, as well as ensuring smooth operations for your online business.

A clear, fair and easy-to-understand return policy can help reduce the e-commerce return rate, build customer loyalty and enhance your brand's reputation.

How do you write a return policy for your online store?

1. Establish a reasonable return window

Clearly state the time window during which customers can return goods. A standard return policy typically offers a 30-day return window. However, you can choose to offer a more extended period, such as 60 or 90 days, depending on the nature of your products and the average return rate e-commerce businesses in your industry experience.

2. Specify the condition of returned goods

Specify the conditions under which products can be returned, such as unused, in original packaging and with tags.

3. Packaging the return shipment

Elaborate on how customers can prepare their items for returns, such as the type of packaging and where they can find them.

4. Indicate return shipping costs

Decide if your e-commerce business will cover the return shipping costs or if the customer will be responsible for them. A more flexible return policy can increase customer satisfaction and loyalty. Offering free returns or extending the return window during holidays or special promotions can be a selling point for your business.

5. Refund policy

Explain how refunds will be processed (e.g. store credit, original payment method, etc.) and the expected timeframe for completion within the policy.

6. Exclusions

List any products that cannot be returned, such as customised products, perishable goods or clearance items.

7. Cancellation policy

Detail how customers can cancel orders before they are shipped and any applicable fees or restrictions.

8. Be transparent and clear

Your return policy should be easy to find, understand and navigate. Use simple language and avoid using jargon or legal terms that may confuse your customers. Outline the return process step-by-step, including how to initiate a return, package the items and where to send them.

9. Make it visible 

Prominently display your return policy on your e-commerce website, ideally on product pages, during the checkout process and in order confirmation emails.