Most, if not all, online stores can benefit from having a clear return policy. Returns will happen, no matter how great your products or services are. Studies show that more than six out of ten customers will even buy products with the intention of returning them. Without a clear return policy, your WooCommerce store can become a target for abuse.
Return policies fulfil multiple purposes. They can help customers feel secure in the knowledge that they won’t be out of money if they don’t like their purchase. A return policy can also offer legal protection for your store and help minimize customer disputes. That last factor can save a lot of money on operational costs over the long run.
In this article, we’ll guide you through writing a return policy for your WooCommerce store. Before we get to that, let’s talk a bit more about why your store needs a return policy!
Why Your WooCommerce Store Needs a Return Policy
It’s not an exaggeration to say that almost every WooCommerce store can benefit from a return policy. Product returns are relatively common both in physical and online retail. Returns can significantly affect your store’s operation unless you have a well-planned system for dealing with them.
In the US alone, returns cost eCommerce retailers around $200 billion in 2022. That’s billions, not millions. The costs of dealing with product returns can easily send a growing store into the red, particularly if customers notice that they can abuse your policies.
A return policy enables you to outline how the return process works and what products it applies to. That policy is what’s going to protect you in case customers try to return products after months of use or that are clearly broken.
While return policy abuse is a clear problem, there are also real buyers who, for one reason or another, might need to return a purchase. Your WooCommerce return policy should make that process as easy as possible to preserve the relationship and build trust with those customers.
How to Write a Return Policy for Your WooCommerce Store (5 Steps)
Step 1: Understand the Local Regulations
If it were possible to write policies that prohibited any kind of returns under any circumstances, you can bet there would be stores doing it (not yours, of course!). Fortunately, there usually are local laws and regulations that protect retail and online customers. The issue for online stores is that not every region operates under similar regulations.
In some regions, customers might be legally entitled to a minimum return window for purchases. Others might enforce unlimited returns for products deemed defective or that don’t meet specific criteria.
A good rule of thumb is that, if your WooCommerce store allows the sale of products in a region, you have to play by their regulations. For example, if you enable sales and shipments to South America while operating in the US, you’ll want to read up on return policy regulations for the countries you want to sell to. That’s because sales you make to customers in that region will be protected by their local regulations (if enforceable).
As a quick note, enabling shipping to other regions is something that WooCommerce enables you to do by adding new shipping zones through the plugin’s settings:
This research step is the foundation you’ll need to craft a WooCommerce return policy that holds up legally and helps you build trust with customers. Now it’s time to get started on the policy itself.
Step 2: Set the Scope of the Return Policy
The scope of a return policy is the part of the text that defines what product sales it applies to. Some products will fall out of that scope, be it because of a time limit or the type of item you’re dealing with (think perishables, for example).
To avoid confusion, the scope of the return policy should include the following information:
- What kinds of products the policy applies to
- The time window that customers have to initiate the return
- Define what condition the item must be in to be eligible for returns
- Define what kind of compensation customers will receive
To get a better idea of what that looks like, let’s go over the scope of a general-purpose eCommerce return policy:
“If you’ve run into a problem with your purchases and you want to initiate a return, we’re here to help! You can return any of our products (except perishables) within 30 days of the purchase. To be eligible for return, all products need to be in their original packaging.“
Any items you want to return must also be in good condition. If they have signs of use or noticeable wear and tear, we won’t be able to process the return.
We can process your return in exchange for the same product, store credit, or a refund to your original payment method.”
You’re free to use that as a template for your WooCommerce return policy. However, remember that you need to customize the policy to match what your store offers. That, in turn, will likely depend on local regulations.
When defining the scope of the policy, try and include as much detail as possible. A detailed policy will help you prevent customers from abusing returns. It will also save you time and headaches in not having to deal with as many inquiries concerning the policy itself.
Step 3: Define How the Shipping Process Works
A good eCommerce return policy should include clear instructions for how the process works. That is if a customer’s purchase falls under the scope of the policy.
The return process can vary a lot depending on whether you’re selling digital or physical products. WooCommerce enables you to sell digital products, but returning them can be challenging.
If you sell an eBook, for example, the return process doesn’t involve physically shipping an item. You can’t really return the book if you already downloaded it. In that case, “returning” the product boils down to you processing refunds for customers.
Some eCommerce retailers, such as Amazon, have processes in place to stop customers from returning digital purchases. For example, if you’ve read a significant part of an eBook, Amazon won’t let you return it. With WooCommerce, you don’t have a lot of recourse in recouping returns for digital sales.
If you’re selling a subscription product, processing returns is simpler. Users will typically be able to request a refund for a while after they subscribe. If they’re within the return window, you can process their refunds. Otherwise, they can cancel and not renew their subscription once the next period arrives.
Overall, physical product sales require the most work when it comes to processing returns. To put that into perspective, here’s a template for part of a return policy that covers how to ship items:
“If your purchase meets the conditions for a return, we will provide you with a shipping label to process it. Use the live chat option to talk to a support agent or email us at ABC@store.com. We’ll get back to you within 3 business days and send you instructions on how to print and use the attached return label.
Please note that shipping times are outside of our control and they depend on the carrier you choose to use. Once we receive the return, we’ll contact you within 2 business days to inform you if we can process the request. Items received in poor condition or not in their original packaging will void the return process.”
That’s a lot of information to cover, so let’s break down why that return policy works. In that template, we start by defining what the customer needs to do to initiate a return request.
Next up, we need to define how return shipments work. In that example, we offer to cover the cost of shipping by including a return label. However, depending on your WooCommerce store’s cost structure, it might not make sense to cover these costs on your end.
Now you need to set expectations for how long the process may take. As a rule of thumb, you want to give yourself plenty of time to process return requests. This will help you avoid making mistakes and ensure that the products you process fall under the scope of the policy.
One of the most common complaints with returns is that they can take a long time to process. Shipping times play a huge factor in this issue, but they’re sometimes outside your control and it’s always a good idea to remind customers of that.
Having covered how shipping works for returns, it’s time to move on and get to the core of the return policy. That is, how you’ll process refunds or replacements.
Step 4: Go Over the Refund/Replacement Options You Offer
At this stage of the process, you’ve already received the return from the customer. You’ve checked that it falls under the policy’s scope, and you’re ready to proceed with the refund or replacement.
There are several ways to tackle this for a WooCommerce store. However, before we talk about what features WooCommerce offers, let’s go over a return policy template that covers how to process refunds and returns:
If the product is in great condition, we’ll offer to ship you a replacement, give you store credit equal to its original value, or refund the purchase using the original payment method.
We cannot process refunds to payment methods different than the one that was used to make the purchase. If you can no longer receive reimbursement to that payment method, we can only offer store credit or a replacement.
Now let’s put that return policy into context, considering what WooCommerce can and can’t do (at least out of the box).
WooCommerce enables you to process refunds to the original payment method. If you want to send customers a replacement item, you’ll need to update the store’s inventory accordingly and you may have to take care of shipping manually.
WooCommerce doesn’t include store credit functionality out of the box. However, it does come with a feature-rich coupon system. You can use that system to issue refunds to customers in the form of discount codes:
If you’d prefer to implement a full-fledged store credit system for WooCommerce, you’ll need to turn to extensions. There are plenty of amazing WooCommerce credit system plugins to choose from, so it’s just a matter of finding the right option for your store.
Step 5: Review and Update the Return Policy Periodically
If you want to create an effective return policy, it’s very likely you’ll need to update it periodically. It’s not rare for customers to find ways to abuse return policies and it’s not uncommon for eCommerce sites to close these loopholes as they find them.
As your WooCommerce store grows, it can also make sense to look for ways to streamline your return policy. More sales translate to more returns and managing this process can eat up a lot of your manpower if you don’t look for ways to optimize it, such as by implementing a store credit system (which we covered in the last section).
To keep your return policy from becoming obsolete, we recommend asking customers for feedback on the process. Sending products for returns can be an intimidating experience for customers, so it’s important to know if they think your process works or whether it could use some improvements.
Conclusion
Writing a return policy for WooCommerce will take you a bit of research. You can use return policy templates as starting points, but you should always customize them to fit your store. Where your customers are located, what payment methods they tend to use, and what shipping options you have available will all play significant roles in how the return process works.
Dealing with product returns can be challenging for both store owners and customers. With that in mind, here’s a quick recap of what you need to do to write an effective return policy:
- Understand the local regulations.
- Set the scope of the return policy.
- Define how the shipping process works.
- Go over the refund/replacement options you offer.
- Review and update the return policy periodically.
Do you have any questions about how to write a return policy for a WooCommerce store? Let’s talk about them in the comments section below!
FAQ’s
1. Why does my WooCommerce store need a return policy?
Every eCommerce store needs a return policy, particularly if you sell physical items. A percentage of customers will want to return products. If you don’t offer a return policy, it can hurt your reputation with customers and you might find yourself in breach of local regulations.
2. Can I deny returns in my WooCommerce store?
Many regions offer customer protections that entitle them to return products under specific circumstances. Failing to abide by these regulations might lead to legal trouble and it can damage your store’s reputation.
3. Can I use a return policy template for WooCommerce?
We don’t recommend using a base return policy template for your WooCommerce store. You can use a template as a starting point, but you’ll want to customize it
4. Can I offer refunds using WooCommerce?
WooCommerce offers a built-in refund system. You can use that system to refund payments for product returns.
5. How can I offer store credit for WooCommerce returns?
WooCommerce doesn’t offer a built-in store credit system. However, you can implement a credit system using WooCommerce plugins.
