Returns and refunds can be one of the key components that eat away at retailers’ profits. In 2017, total merchandise returns cost U.S. retailers a staggering $351 billion in lost sales. Yet, it remains a high priority to shoppers, as seen in a survey by OrderDynamics, which found that 47 percent of shoppers rated the importance of returns as ‘very important.’
As a business, it is important to strike a balance between being customer-driven through the return and refund experience, and managing the costs of the policies and processes. In order to do so, it first starts with strategies to prevent a high number of returns and refunds. This includes training sales associates to understand shoppers’ needs to help them make purchasing decisions they are satisfied with, and optimizing the supply chain to manage costs.
When it comes to setting up the return and refund processes, it is important to have a framework for when and how to carry them out. Through the infographic below, Should You Refund, Replace or Rework for a Customer? by Housecall Pro, learn about about the benefits and implications of a return and refund policy. The infographic elaborates on why a return or refund policy is important and the necessary elements of a return policy, for both service-based and product-based businesses.
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