Checklist: Types of Retail Return Policies
- Exchange Only: 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.
- Store Credit: If a customer is unhappy with their product, they can return the item to you and receive a credit for the amount of their purchase, usually less shipping costs. However, this may not appeal to a customer who has had a bad experience with your product, and it may not be effective if you only sell one type of product.
- All Sales Final: An as-is policy may save you money in the short term — protecting you against merchandise being damaged in shipping and fickle customers — but in the long run, it will assuredly cost you money.
- Complete Refunds: When a customer returns an item, especially if they used a credit card to purchase it, you will still need to pay the processing fees for the purchase, increasing the amount you will need to pay for the return.
- Restocking Fees: Many businesses charge a restocking fee of 10 to 20 percent to help cover any processing fees, handling, and other costs associated with processing returns. Restocking fees are normally charged only on returns and exchanges made at the customer's discretion, not on returns of defective merchandise.
