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. In 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 policies, you could get help from the following.
Receipt for your returned product:
You must give a receipt as proof that the customer purchased your articles. A receipt is a truth of your bought products, prices, dates, 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 a receipt
- Return with receipt will charge 20% of the actual amount
The receipt policy will lower the fraud cases for your small business loan. According to The National Retail Federation survey, 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 for the National Identity Card
Some business requires identity cards from customers in return. It lets small entrepreneurs identify which customers repeatedly return items from your sale. This may also prevent theft. In the 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 an exchange
- Cash return
- Return on credit/debit card used for a purchase
Deciding how to pay consumers is important in 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 the time to 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, or 60, days. Besides 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’re online, then on your website. Add it to your social media campaigns or marketing.
The Bottom Line on Goods Returns
Your returns are the life of your business. No matter what you sell, people always come to return things. Make the return process candid and simple. Do they return pleasantly rather than an unpleasant chore? This way, you will keep customers by your side and inspire them to spread positive word-of-mouth about your business. Train every employee how to deal with return customers if he is bad-mouthed or speaking ill. This thing is really a truly positive bottom line.