{"id":626,"date":"2020-08-07T06:00:18","date_gmt":"2020-08-07T11:00:18","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/ecommerce-exchange-policy\/"},"modified":"2024-11-01T16:09:50","modified_gmt":"2024-11-01T16:09:50","slug":"ecommerce-exchange-policy","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/ecommerce-exchange-policy\/","title":{"rendered":"How to Write an Ecommerce Exchange Policy that Customers Will Love"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is an ecommerce exchange policy?<\/a><\/p>\n\n\n\n

Why you (and your customers) need a well-thought-out ecommerce exchange policy<\/a><\/p>\n\n\n\n

Ecommerce exchange policy best practices<\/a><\/p>\n\n\n\n

Exchange policy examples: how 3 ecommerce businesses manage exchanges<\/a><\/p>\n\n\n\n

The best way to manage ecommerce exchanges<\/a><\/p>\n\n\n\n

Conclusion<\/a><\/p>\n<\/div>\n\n\n\n

When it comes to retaining revenue, exchanges are one of the most powerful tools in a retailer\u2019s arsenal. Unfortunately, the opportunity often dissipates because of long and complicated ecommerce exchange policies that push shoppers into requesting refunds instead. <\/span><\/p>\n\n\n\n

A robust exchange policy helps steer the ship back on course, incentivizing shoppers to exchange an item for what they really want, while retailers get to keep the sale. Let\u2019s take a deeper look at the importance of ecommerce exchanges policies, and review best practices for writing a successful policy of your own. <\/span><\/p>\n\n\n\n

What is an ecommerce exchange policy?<\/h2>\n\n\n\n

Often combined with a retailer\u2019s <\/span>return policy<\/span><\/a>, an ecommerce exchange policy outlines the rules and requirements for making an exchange or return. The policy is where shoppers go to gather information about the exchange window, accepted return conditions, and whether or not there\u2019s a cost associated with an exchange. <\/span><\/p>\n\n\n\n

Why you (and your customers) need a well-thought-out ecommerce exchange policy<\/h2>\n\n\n\n

Did you know that <\/span>67% of shoppers<\/span><\/a> review a retailer\u2019s exchange and return policy before making a purchase?  The easier the policy is to digest and understand, the more likely a shopper will feel comfortable making a purchase. Below outlines the top reasons why every ecommerce business<\/a> should have an exchange policy. <\/span><\/p>\n\n\n\n

Exchanges are a central part of the customer experience<\/h3>\n\n\n\n

Exchange policies play an important role in the customer journey before the sale even takes place. An easy-to-understand policy gives shoppers the confidence to purchase from your store and will feel less worried about having a bad shopping experience.<\/span><\/p>\n\n\n\n

From a post-purchase perspective, a clear exchange policy serves as a tool to encourage customers to easily swap out their purchase for something else, instead of asking for their money back. Whether the customer is debating on making a purpose or is looking to make an exchange, both cases play a huge role in shaping the overall customer experience.  <\/span><\/p>\n\n\n\n

A great exchange policy makes your life easier<\/h3>\n\n\n\n

Taking the time to create a proper exchange policy early on will save you trouble in the future. With a clear policy that leaves no room for interpretation, your customers will know exactly what to expect, reducing the need for angry <\/span>customer service<\/span><\/a> calls down the line.<\/span><\/p>\n\n\n\n

With <\/span>87% of consumers<\/span><\/a> unlikely to shop with a retailer again after dealing with a painful exchange or return process, a great exchange policy is the first step in ensuring a positive post-purchase experience. In fact, <\/span>95% of consumers<\/span><\/a> shop from a brand again after a positive exchange and return experience.<\/span><\/p>\n\n\n\n

A proper exchange policy can build customer loyalty<\/h3>\n\n\n\n

A well-written exchange policy doesn\u2019t just prevent a bad customer experience, but also actively makes the buying experience even better. Shoppers who feel they\u2019ll be taken care of if their purchases don\u2019t work out are far more likely to buy more from you in the future. <\/span><\/p>\n\n\n\n

The joy of effortless exchanges also influences shoppers to leave a positive <\/span>online review<\/span><\/a> or share their shopping experience with their family and friends. It\u2019s a snowball effect that stems from a great exchange policy and process. <\/span><\/p>\n\n\n\n

Ecommerce exchange policy best practices<\/h2>\n\n\n\n

To increase exchange rates, reduce refunds, and take advantage of the benefits that a great exchange policy provides, there are several best practices to keep in mind. Here are some tips for writing an exchange policy that sets you up for success. <\/span><\/p>\n\n\n\n

1. Give your customers more time to make an exchange<\/h3>\n\n\n\n

Creating longer windows for shoppers to exchange or return may seem counterintuitive, but it\u2019s a returns management<\/a> strategy that\u2019s proven to decrease return rates. Allowing longer than the traditional 30-day period creates less urgency for the shopper, removing returns from their top of mind and potentially causing them to forget to return altogether. <\/span><\/p>\n\n\n\n

Longer exchange and return windows also benefit from the endowment effect, a behavioral theory that suggests consumers form an attachment to something the longer they own it \u2014 ultimately making them less likely to want to part with it. <\/span><\/p>\n\n\n\n

2. Cover the cost of the exchange<\/h3>\n\n\n\n

Entice shoppers to exchange instead of return by covering the cost of exchange shipping. Not only will you save money in the end, but you\u2019ll give shoppers an incentive to make the initial purchase. An exchange policy that shows it won\u2019t cost them extra if they change their mind makes customers comfortable taking a chance on a product. No one wants to pay more for something they already don\u2019t want in the first place. <\/span><\/p>\n\n\n\n

3. Customise your policy to your audience<\/h3>\n\n\n\n

Exchange policies aren\u2019t one-size-fits-all, so you shouldn\u2019t just use a template to create one and then hope for the best. Instead, make sure you\u2019re addressing the expectations and needs of your specific customer base. <\/span><\/p>\n\n\n\n

For example, if you don\u2019t have a brick-and-mortar store for in-person exchanges, consider partnering with other retail locations that <\/span>host item drop-offs<\/span><\/a> for <\/span>direct-to-consumer (DTC) brands<\/span><\/a>. Shoppers will appreciate you giving them options for whatever exchange method is most convenient, and they\u2019ll spread the word to their friends. <\/span><\/p>\n\n\n\n

4. Make sure you\u2019re in full compliance<\/h3>\n\n\n\n

It\u2019s vital to make sure you\u2019re aware of all laws related to ecommerce exchanges and <\/span>return policies<\/span>. While state laws vary, most require you to disclose your policies before a customer makes a purchase. <\/span><\/p>\n\n\n\n

For example, California retailers are required to post their refund policies clearly, unless they provide a cash refund, exchange, or store credit within one week of the original purchase. If they fail to do this, they are required to accept full refunds within 30 days of the sale. <\/span><\/p>\n\n\n\n

5. Allow your policy to evolve<\/h3>\n\n\n\n

After creating your exchange policy, don\u2019t forget that it\u2019s not set in stone. Adjust your policy as needed to better serve your business and your customers. During COVID-19<\/a>, for example, <\/span>many retailers extended their exchange windows<\/span><\/a> to accommodate for longer shipping times, and the temporary inability to exchange items in-store. A policy that is updated to help customers during unique or difficult times goes a long way to increase brand loyalty. <\/span><\/p>\n\n\n\n

6. Follow-up with customers<\/h3>\n\n\n\n

Consider checking in with your shoppers after an exchange to make sure they\u2019re happy with their new product. This shows the level of care you put into the customer experience and also allows you to stay top of mind.<\/span><\/p>\n\n\n\n

7. Make sure your customer service reps know the policy<\/h3>\n\n\n\n

A surefire way to upset a shopper is by having a customer service representative contradict what your policy says. Shoppers will be frustrated enough that they have to call customer service in the first place, so a discrepancy between what they hear on the phone and what they read on your site will only add unnecessary fuel to the fire. <\/span><\/p>\n\n\n\n

8. Clearly define what merits an exchange and what does not<\/h3>\n\n\n\n

To avoid conflict and confusion, your policy must be extremely clear about what customers can and cannot exchange. Ambiguous guidelines lead shoppers into thinking they have a right to exchange something that your business doesn\u2019t allow. Using words like \u2018damaged\u2019 and \u2018unworn\u2019 should be included in your exchange policy to paint a clear picture of the condition an item must be in for it to qualify for an exchange. <\/span><\/p>\n\n\n\n

Exchange policy examples: how 3 ecommerce businesses manage exchanges<\/h2>\n\n\n\n

Keeping best practices in mind, let\u2019s take a look at some examples of online brands that have a great exchange policy in place. <\/span><\/p>\n\n\n\n

Glyph<\/h3>\n\n\n\n

With a beautiful design and clean drop-down menu, <\/span>Glyph\u2019s exchange policy<\/span><\/a> is an example of a retailer doing it right. Glyph keeps things clear and concise in a Q & A format that answers what the policy is and how to return an item, in one comprehensive sentence each. <\/span><\/p>\n\n\n\n

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Ombraz<\/h3>\n\n\n\n

Sunglasses-retailer <\/span>Ombraz makes exchanges easy<\/span><\/a> for its shoppers by listing the directions in three easy steps. The company also avoids confusion by clearly describing the condition an item must be in to be eligible for an exchange. Additionally, it provides instructions for shoppers who want to make an exchange after the policy\u2019s 30-day exchange window has passed, helping the retailer avoid refunds by accommodating exchanges as much as possible. <\/span><\/p>\n\n\n\n

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Cuts Clothing<\/h3>\n\n\n\n

Knowing that shoppers review exchange and return policies before making purchases, Cuts Clothing <\/span>designed a policy page<\/span><\/a> that takes the guesswork out of exchanges. The men\u2019s t-shirt retailer makes its returns policy concise, outlines a simple step-by-step process, and gives one clear call-to-action. <\/span><\/p>\n\n\n\n

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The best way to manage ecommerce exchanges<\/h2>\n\n\n\n

To make exchanges as easy for you as they are for your shoppers, it\u2019s important to partner with vendors who can provide you a comprehensive solution for your exchange strategy. <\/span><\/p>\n\n\n\n

ShipBob merchants can offer a robust exchange and return experience<\/a> for their customers. <\/span>Merchants are able to set up their returns preferences in the ShipBob dashboard, so they are processed in their preferred manner. <\/p>\n\n\n\n

Additionally, ShipBob has partnerships and direct integrations<\/a> with top returns platforms such as Loop Returns and Return Logic.<\/p>\n\n\n\n

Conclusion<\/h2>\n\n\n\n

Exchanges are an opportunity to retain revenue, and it all starts with your policy. With a clear, concise policy that is customised to your audience and takes the hassle out of exchanges, you can significantly reduce refunds and keep more sales. <\/span><\/p>\n\n\n\n

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