Establishing a return policy can be difficult — you want to be fair and friendly, but you don’t want customers take advantage of your kindness. Strike a balance by setting a clear policy that allows for some flexibility. Factors to decide when creating a return policy include whether you’ll give cash back versus store credit; the time you’ll allow for returns; how you’ll handle broken, damaged, or opened merchandise; and whether you’ll accept items without a store receipt. Finally, to prevent return fraud and ensure that returned items actually came from your store, it’s a good idea to code all purchased items.
For more on return policies for Web-based retailers, be sure to read The Return Policy: The Forgotten Fundamental of Online Sales.