Refund Policy: An Essential Part of Any Purchase

If you have made purchases online, you have probably heard of Refund Policy and it’s exactly as it sounds: policy considering the terms and conditions of refunds and returns, which are offered by an eCommerce store or a website.
Online business owners know how exciting it is to see that someone has made a purchase on a website. But this excitement vanishes if a customer asks for a refund. Of course, every entrepreneur wants buyers to be 100% satisfied with purchase but the reality is different: there will always be a certain percentage of clients, who would want to get their money back.

What you should know about refunds

According to Harris Poll, 91% of consumers answered that the refund policy of a store is rather important when making a decision whether to buy there or not. This means that having a detailed and clear refund policy is one of the ways to attract and keep customers on your website.
A well thought out refund policy makes customers feel secure because they have a guarantee that the purchase will match the description. Absence of refund policy will make them suspicious and they’ll leave the website without buying anything.
According to the National Retail Federation 15 to 30% of purchases are eventually returned, so a proper return policy is crucial for the wellbeing of your website.
Retailers worry that customers will simply take advantage of refund policies. But surveys show that when return terms are too strict, buyers won’t want to mess with them. They would prefer getting a refund instead of exchanging items and won’t want to pay for return shipping. For example, with instant withdrawal casinos you can expect your money back in less than 24h and refunds for goods must be as simple!
To make both sides satisfied, retailers use various methods to track the return patterns of their buyers. Companies like Wal-Mart have created a unique tracking system, while others hire a third-party to regulate returns. The main idea is to stop rogues from returning items over and over again but keeping the refund policy rather simple for honest buyers. For example, at the Apple Store, you can get a refund in four simple steps and it won’t take too much of your time.

Problems of refund policies

Unfortunately, refund policies face several problems depending on the niche the company or service occupies. These problems will be useful to know about even if you are a regular customer.
The first one is that actually refund policy is another tool in the hands of experienced retailers, which leads to increased profits. And the more time you have to return a purchase, the more likely you will never do so.
Valve is a bright example of a company, which decided to play on the return time. However, they went the other way – players could return a video game only if it was bought less than two weeks before and played for not more than two hours. How on earth is it possible to understand whether you like a video game or not if playing only for half an hour?
Seems like time is a common problem of refund policies in every niche. For example, when you make a purchase via a debit card and then decide to cancel it, you’ll have to wait for several days while the bank will settle all the issues with the merchant. Moreover, if the seller refuses to give you a refund, you may experience a few unpleasant moments when trying to get your money back.
However, not only buyers face refund policy issues: companies may also suffer. For example, there are two types of accustomed returners, who greatly hurt profits: people who buy things only to wear them once and people who buy items of different colors and sizes to pick the most suitable one and return everything else.

Pay attention to what you buy

Refund policy is one of the key factors, which influences whether buyers would entrust their money to a particular company or not. However, often such policy acts as an additional instrument for making profits and creating problems. Not to let that happen, read all the terms and conditions attentively, and always pick items with a clear head.