For the progress of any business, selling a product and collecting money is not everything. You need to prepare for the customer to return goods mentally. For that case, your small business loan needs to prepare a clear return policy.
So, what is a return policy for your small business, and why is it important?
Small business Loans return policy is a set of rules that make customers know what they should do if they want to return or change the product. According to an estimate, 9% of purchased and 30% of online products are returned solely in America. The return policy determines how much worth your product has in the market. A small business loan return policy is necessary before selling your products. Having no return policy may lead to a frustrated customer.
What are the reasons for the return of any product?
- The product has some flaws
- It is defective and damaged
- You purchased the wrong item.
- The customer has changed his mind
- The Buyer doesn’t want that anymore
- The product is not according to the expectations of a customer
Although there are no standards for any of the return policy you could get help from the following.
Receipt for your return product:
You must give a receipt as proof that the customer had purchased your articles. A receipt is a truth of your bought products, prices, date and other information about your business.
This way you can also get a record book of your products being returned
- No exchange or return without the receiving slip
- Return will only be possible with a receipt
- Exchange can be accepted with receipt
- Return with receipt will charge 20% from the actual amount
The receipt policy will lower the fraud cases for your small business loan. According to The National Retail Federation survey, the returns without receipt made up 10% of returns.
But this policy cannot prevent return fraud 100%. So, make policy according to the nature of your small business loan.
Don’t forget to ask the National Identity Card
Some business requires identity cards from customers on return. It lets small entrepreneurs identify which customers repeatedly return items of your sale. This may also prevent theft. In NRF survey without a receipt, 85.2% of customers were required to show a valid ID with a return.
How smooth you are in your Small business
How will you refund patrons if they come for a return or exchange?
You surely will follow all your prescribed rules.
These are some ways you show your lenient business attitude:
- Even if customers come for exchange
- Cash return
- Return on credit/debit card used for a purchase
Deciding how to pay consumers is an important part of building a return policy. Customers should know how they will receive their payments before they return the goods.
Prescribe your product return time
Make it your policy to mention time for return your products. Some products need to be returned sooner. So mention it on the product or receipt. This detail will help make sure that you don’t receive outdated or ended wares. For example, you would only accept products within seven, 14, 30, 60, days. Beside this, a return is not acceptable. But, make positive clients understand your rules. Let’s say you have a large store where you sell clothes as well as candy and popcorn. Your return policy is 2 days for clothes and seven days for edibles.
Your Limitations for a return policy
You would have to ascertain that you cannot refund some items. Especially for discounted items or items that the customer had ordered online. You cannot cover the cost of return shipping. Can you cover the cost of shipping for exchanged goods? You should state in your policy, so customers aren’t upset if they must foot the bill.
Advertise your small business loan return policy
Your business’s returns policy demand to be visible and posted. Post it on your wall, your leading counter and on your receipt if possible. If you online then on your website. Add it to your social media campaigns or marketing.
The Bottom Line on Goods Returns
Your returns are a life of your business. No matter what you sell, people always come to return things. Make the return process candid and simple. Do the return into a pleasant way rather than an unpleasant chore. This way you will not only keep customers by your side but also inspire them to spread positive word-of-mouth about your business. Train your every employee how to deal return customer if he is bad-mouthed or speaking ill. This thing is really, a truly positive bottom line.