7 Useful Tips to Write an E-commerce Return and Refund Policy as a Dropshipper 2024

The issue with online shopping businesses is that the customers must purchase the product before they get to touch it. It may cause some issue, and the customers may end returning the product. As a dropshipper, it can cause even more trouble since it is their suppliers that fulfill the orders. That’s why a return and refund policy is significant for online dropshipping entrepreneurs.

Creating a return and refund policy and addressing key issues are critical to motivating customers to make their first purchase and eventually purchase from you again. However, when you are going to make one, it’s vital to make a policy guaranteeing benefits, not only yours but also your customers’.

Then how to create a suitable policy? This article is here to help you.

The article includes a brief introduction and tips to make a return and refund policy.

What Is a Return and Refund Policy

The return and refund policy is an agreement that illustrates the requirements and rights your customer needs to know in case they want to return the product or ask for a refund.

It usually includes the following information:

• How many days do they have to return the product
• How will your customers receive the refund (credit or replacement)
• Whether you provide a refund for digital products or in-app purchases
• Who pays the shipping cost for returning the product

Like other policies on your website, you should draft a return and refund policy that is appropriate for your store. The policy must be clear and of moderate length.

Keep in mind: You need to ensure that the policy covers all products and situations that may arise and provide as much information as possible.

If the return and refund policy is too broad, customers may not know which situation applies to them. If your policy is too narrow and long, the buyer may get lost in all the terms.

Why a Dropshipper Need a Return and Refund Policy

A return policy is an absolute requirement for the successful operation of an e-commerce website. It will help you provide high-quality customer service. Also, it will help to process returns more easily by enhancing consistency.

What’s more, having a refund policy can be an important asset in winning customers from your competitors since it can provide them with security and increase trust in your brand. However, it should be a balanced return and refund policy, because you don't want your customers to take advantage of you.

As a dropshipper, the dropshipping model makes the online business easier. By contrast, there might be higher risks of receiving a return or refund requirement.

You are not required to develop a good return & refund policy, but a good return and refund policy can ensure your benefits and get more sales.

Remember, when your customer requests a return, you first should check whether it’s cheaper to send them a new one. If it’s true. You should write to your customer and ask for sending an alternative. Also, you need to negotiate with your supplier first. If they don’t support the return or refund, you need to find other solutions to satisfy your customer. So a good return and refund policy is necessary for your dropshipping business.

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How to Write a Return and Refund Policy

The return and refund policy should cover all the details without being so complex. So how can you make one? You can check these parts one by one.

Part 1: Make Language Simple and Clear

The general rule here is to write as you speak. It’s easy to understand when you talk with your friends or family members about something, how will you act? Like a lawyer? No, you would not. Writing a return & refund policy is nothing different.

While writing, try to keep your language simple and understandable so that customers can easily determine the steps they need to take. You should provide normal conditions for returns and refunds. If the customer’s situation does not meet one of the conditions, you can call or send an email.

Remember: As long as it is clear, concise, and explainable, you can start.

Part 2: No Fees Associated with Returns

When customers want to return the commodities they bought in your store, things such as who will bear the cost of the return shipment, and replacement, need to be clearly defined in your return policy.

It is important to disclose any fees associated with returns. Requiring fees may cause more complaints.

It can help you resolve some complaints. If a customer receives something that they want to return or find an alternative, you ship the alternative for free or bear the fees of the return shipment. The great service would potentially leave a good impression on the customers. It then will motivate more sales next time and reduce complaints.

Part 3: Stipulate the Return Time

For your store and customers, the most vital term may be the time frame in which your customer can return a product or request a return or refund.

Return time means how many days does the customer have to return the products. It’s significant. If you don’t require the return time, the customer will be able to return a product even after a month in some countries. It will hurt your earnings.

However, if you require a specific time, such as seven days of free return. The customers will agree on the policy and you will not lose much.

As a dropshipper, you can outline different time for different suppliers. Why? The suppliers are in different countries, shipment time may be longer, it might be better to change the time and make it fit a certain region.

Part 4: Type of Refund You Provide

Why it’s an important factor? The situations for refund can vary greatly. Sometimes your customer purchase 60 items from you, but 20 of them are damaged, what will you provide? A full refund? No. You just need a partial refund to safeguard your profits.

Besides, what kind of refund will it be? Is it a cash refund, store credit, or a refund of the charged amount to the credit card? It all depends on how your store is operated and whether you own a physical store and an e-commerce store.

So the policy should include a session to make it clear so that the customer will know which they should choose. It also helps to ensure a policy at your advantage.

Types of Refund:

Part 5: Not Returnable Items

Not every type of product is suitable for requiring a return or refund. There are many instances in which the items are not returnable. It may be when the purchased item is the final sale item, or if you have purchased a specific type of clothing, such as a swimsuit or underwear.

Make sure your customers understand those are not returnable before purchasing. When the products have any problems, you accept any request.

This section of your return & refund policy is a way to notify customers of these restrictions and protect your store in the event of disputes over returns.

Part 6: Condition of the Item

It plays an important role for protecting your store. It can help you deal with returns and refunds if the products are not in the required condition.

If a customer wants to return an item, you want to make sure that the condition of the item at the time of return is close to the status of the item at the time of purchase. It allows you to resell the product if possible. It also reminds customers that if they damage the product, they will not be able to return it.

It can protect your store from constant return and money loss. Also, it can help your store reduce disputes if you make it clear in the return and refund policy.

Part 7: FAQs about Return and Refund

This part is optional. However, you would better have this part. It can help you know what your customer is concerned about the most concerning return & refund.

Some e-commerce brands have FAQ pages dedicated to their products and stores - why not apply the same method to explain your return process?

Online shopping is to save time and money. It should be easy to find answers to common questions about an e-commerce return and refund policy.

FAQ Examples:

• When will I get my refund?
• How do I return goods?
• I have not received my refund, what can I do?
• How do I know whether my goods is returnable or not?
• How many days do I have to return the goods?
• How long do I have to wait to receive my replacement product?
• ........

What Else You Should Know

As a dropshipper, the return and refund policy plays a much more important role. So you should pay more attention and spend more time making it.

And if you are a starter and you want to spend more time on making policy, not your store management, suppliers finding, and solutions to problems regarding orders, use DSers to help you.

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DSers is a platform that provides dropshipping solutions. It helps to improve people’s efficiency of by saving their time to place order and money with online stores by allowing users to place multiple orders to AliExpress in just ONE CLICK.

And with DSers, the order dealing process will be much easier, so you can focus more on your policy - making sure you give your customer a better experience. For more tips to improve customer experience, please check in our 6 Customer Experience Tips to Boost Your Sales article.

Final Words

Think of your return and refund policy as an expansion of your business. It should represent the core philosophy, attitude, and tone of your business.

It could be the most-read document on your website. It’s not just a way of explaining your return and refund requirements to customers, but also a means of making a good impression and preventing disputes.

While formulating the company's return policy, please take a moment to develop a plan. In other words, you’d better plan what you want to do before having to actually do it.

For example, you can brainstorm, do some research, write some drafts and ask for suggestions; read the return and refund policy of successful companies and view the return and refund policy templates; use what you have learned to develop an excellent return policy that suits your business.