It has been found that the seller’s return policy is one of the key factors for the customers which enables them to make a purchasing decision. It also helps to draw new customers and keep old ones.

A comprehensible return policy gives customers a feeling of security. It also helps increase sales as customers sees a well drafted and flexible return policy as a guarantee that the seller provides and also reflects the trust they have in the products that they are selling.

A return policy needs to cover points that help customers understand the restrictions and allowances on returns and how refunds to be made.


Drafting return policy is an art as each seller’s return policy should be distinctive and related to the products or services, which they sell. A good return policy should include:

  • Deadline within which the product has to be returned
  • Type of refund (exchange, store credit or full refund)
  • Information seller needs for refund, like receipts, credit card details etc.
  • Conditions setting out eligibility for products to be returned
  • Place of return and shipping cost


Lately, businesses have begun employing tracking mechanisms to determine the returning habits of customers. Many companies have developed their in-house system, while others have outsourced the task to other companies to track retail returns. The sole purpose is to discourage fraudulent people from returning items frequently.

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