The Return Policy: The Forgotten Fundamental of Online Sales

E-commerce is based on trust. Customers see a picture and a description of a product on your Web site, and, based on the information you provide, make a purchase. An e-commerce site that does not inspire

this trust in its users will do precious little business. One of the best ways to put customers at ease is through a well-thought-out and prominently posted return policy. Spending a little time now developing a return policy may spare you a whole lot of headaches down the road.

First, decide which type of return policy will work for you. If you are already doing business offline, you probably already have a return policy; in this case, it's as simple as typing up your policy and posting it on your site.

Exchange Only

As the name suggests, an exchange-only policy means that if a product is defective, you can replace it or offer the customer a different item of equal value. For example, if your customer purchases a digital camera from you and it does not work, the customer would first have to return the defective camera and then you would send a replacement out once the defective product is received. While you will lose revenue from the replacement product, you won't have to process a refund and give back the revenue from the sale.