Somewhere between 12 million to 24 million e-commerce sites are operating globally. With numerous e-commerce website builder options, retailers are trying to create their space in the internet business world.It is also cost-effective to start an online business and can be highly profitable if operated strategically. Every e-commerce store uses different strategies to gain customers. Generally, people buy from those whom they trust. One of the best ways to build trust in customers is by offering a refund policy. 79% of customers expect free return shipping in the refund policy. So, use customers’ expectations in your favour.
So, What’s a Refund Policy?
It’s a policy that states when and how a customer can return products purchased from your e-commerce store and how you’ll refund the amount.
Importance and Benefits of a Refund Policy in Ecommerce Business
1. Builds Trust
People buy products from online stores without checking the product in person. So, they buy products based on trust. And the refund policy infuses trust into customers. This policy assures them that they can get their money back if they don’t like the product. In fact, 60% of customers purchase after reviewing the refund policy.
2. Increases Your Customer Base
The more trustworthy you appear, the more customers prefer to buy from you. A refund policy gives confidence to potential customers to try your products. This increases your customer base. They know they can purchase , and if they do not like it, they can file for a refund. This increases your customer base.
3. Increases Sales
When more customers show interest in your products and are confident in buying them, your e-commerce store sales will skyrocket naturally.
4. Reduces Return Delivery Costs
You can reduce your return delivery costs with an effective return and refund policy. For example, you won’t need to spend time and money on unnecessary exchanges of emails of customers querying about return and refund procedures. It’ll be convenient for your customers to return a product and request a refund.
5. Helps Build a Better Product
One of the reasons customers return a product is when it doesn’t meet their expectations.But it also allows you to find out what a section of your potential customers is expecting from your products. Then you can use that information to improve your products.
6. Helps Retain Customers
Customers are more likely to purchase from your e-commerce store when they know you give them free return shipping in case they receive a damaged product. In fact, 92% of online shoppers say they would buy products from the same e-commerce store if their refund policy is customer-friendly.
Calashock is a global e-commerce agency and BigCommerce Elite agency partner with over a decade of experience and operations across Europe and North America. If you have any questions, feel free to contact us