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Many drop ship retailers really fret over return policies. Do I allow returns or not? How long should I allow them? What do I do with returns? Will my supplier take the item back?
You should accept returns
My feeling is that everyone who wants to be serious about selling online needs to accept returns. Your ability to sell is severely hindered if you refuse. It makes your customers leery and many will simply go elsewhere. It’s all about building customer trust. There are a few notable exceptions of course. Anything personal (underwear, bathing suits, health/beauty products) or personalized (engraved or embroidered goods) should be exceptions.
While the standard is different across industries, most stores should average 30 days. Some will be longer, and some, most notably electronics, may be shorter.
Will my supplier take it back
A good general answer is no. At least not for free. We’ve talked before about the business model of a wholesaler, and returns are not usually part of it. Some may accept returns if you pay a re-stocking fee.
When faced with a request for return, it’s up to you to weigh your options; pay the re-stocking fee, or take it in yourself. Also, if you have delivered the product as promised, without any damages or mistakes, the customer should pay the return shipping themselves.
What do I do with returned product
The idea of returning something that you don’t stock in the first place is a major obstacle to business. You do have a couple options though. If the item is in good shape, hang on to it and you may sell it soon. Just ship it yourself instead of ordering from your supplier. This is also a great place to use eBay, just list it as a returned product. You’ll probably lose a little money on it, but it should be better than having the restocking fee or being stuck with it altogether. Finally, you can always use it for giveaways or prizes in the future.
Lets hear some ideas. How do you handle returns in your business?
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December 18th, 2010 at 2:31 am
This was one of my biggest concerns. I love the idea of using returns for prizes..turn a return into a marketing tool that may deliver better returns. Cool!