Return Policy: Discourage refunds by charging an additional processing fee

Overview

The article will walk you through the steps to lower the number of refunds. It highlights the importance of their role in minimizing returns for profitability and outlines steps to implement a transparent fee structure. By communicating the policy, educating customers on alternatives, and monitoring performance, businesses can effectively deter unnecessary returns while maintaining customer satisfaction.

In this article, you can find the following:

• How it works
• Setup
• Customer experience
• FAQ

How it works

The article presents a strategy that can positively change e-commerce businesses. It underscores the benefits of minimizing returns for profitability and provides a clear roadmap to implement the plan effectively. This includes understanding additional processing fees, determining a suitable fee structure, communicating the policy clearly to customers, educating them on alternative options, and monitoring performance for adjustments.

Setup

1. Navigate to Settings > Return Logics and Policies;
2. Select the return logic you’d like to edit;
3. Look for restocking fee;
4. Select the option that would fit best with your policies: a fixed amount or a percentage of the item’s price
   
5. You can also choose if you’d like to apply this fee to returns, exchanges, or both;
6. Save your changes.

Customer Experience

Returns requests from customers who fall under this logic, will displaythe following message after completing their return or exchange request:

FAQ:

1. Will this fee be applied to all returns? No, only to the returns that fall under the logic you chose.
2. Are admins still able to do returns without this fee? Yes, the admin flow isn't attached to any return logic.
3. Can I apply this fee only during determined times of the year (for example, the end of the year)? Yes, by adding a condition to the return logic.