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Goods Return Policy

Goods Return Policy

  • A Goods Return Policy refers to the rules created to manage how customers return and exchange unwanted merchandise they purchased. 
  • A return policy tells customers what items can be returned and for what reasons, and the timeframe over which returns are accepted. 
  • Return policies are a consumer risk reliever often used by retailers to increase consumer demand.

Requirements of a Return Policy

Stipulate a time frame for returns

  • It’s important that customers know how long they have to return a product. Generally speaking, 15-30 days is standard, although some businesses opt for 90 days. Either way, it will not helpful by accepting returns beyond that time. Failure to disclose a time frame for returns will result into customers shipping back items months, even years after they’ve been purchased. 

Define the expected condition of returns

  • It’s one thing to accept a return if the customer is immediately unhappy with a product or the product is defective. It’s quite different to accept a return if a product has been used, broken or devalued in any way by the buyer. 

Define the reason and reason codes for the returned items

    • Establish the reasons why the goods are returning to the warehouse and give reason codes. 

Returnable Goods and Non-Returnable Goods

For example; Eligible Products for Return:

  • Received by customer as damaged
  • Received by customer in error
  • Goods ordered by customer in error
  • Expired or In-dated product may be returned for credit

Examples of Non-Returnable Goods may include

  • Product that is not in the original packaging bearing the original manufacture label.
  • Product that is more than six (6) months prior to the expiration date.
  • Product that is twelve (12) months or more past the expiration date.
  • Product sold with specific understanding that it is non-returnable.
  • Merchandise that is obtained in violation of government regulations.
  • Product that has been donated.