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.