Skip to content
Home » E-commerce Return Policy: Examples, Template, Best Practices (2023)

E-commerce Return Policy: Examples, Template, Best Practices (2023)

  • by
E-commerce Return Policy

A fashion firm’s return policy could make or break a business. This is particularly detrimental to e-commerce apparel stores that have a smaller margin for loss of profit. If you’re just setting up your e-commerce business or have an already established brick-and-mortar conventional store but are facing a loss in investment, read on!

This article provides you with the most updated E-Commerce Return Policy, Examples, Template, Best Practices and more for 2022 to 2023. To help your online store provide top-notch customer satisfaction, order fulfilment, and unbeatable value of an investment for your organization both this 2022 and in the upcoming 2023.

Why Have an E-Commerce Return Policy?

We’d like to shed some light on why it’s important to have a return policy before we delve into the nitty-gritty of writing the most effective e-commerce return policies.

Sending things to customers doesn’t imply you won’t see them. Sometimes the product returns to the brand. E-commerce shops lose $369 billion annually. Companies like UPS have set a “National Returns Day” on the day they received 1.9 million packages in returns. But what are return policies?

What Is E-Commerce Return and Exchange Policy?

A store’s return policy is its set of guidelines for dealing with returned or exchanged goods. It’s the standard order form that specifies returnable items, returns policies, and return deadlines to buyers. Generally, accepting a return can be emotionally and financially draining for businesses. But having a policy in place to address such situations helps reduce risks and issues.

Why Are E-Commerce Return Policies Important?

It’s crucial to have a robust return policy that prioritizes the customer. It plays a crucial role in business performance and marketing success. If customers aren’t happy with return procedures, it can cause stress, money, and a social media frenzy that will cost firms a lot of money. For instance, statistics show that 68% of consumers research the return and exchange policies of online stores before purchasing.

What Are the E-Commerce Return Policy Advantages?

Long-term, a customer-focused return policy is beneficial. One-time purchasers become loyal fans. You can save money on marketing and enhance your internet conversion rate with their ratings and suggestions. Nielson found that 66% of people globally trust online customer reviews.

By improving e-commerce return policies, you can:

  • Reduction in Global Pollution by Fashion Industry the second-highest polluter
  • Improve Consumer’s Brand Perceptions
  • Provide Customer Satisfaction
  • Builds Consumer Trust
  • Impacts Conversion Rates
  • Determines the brand’s loss and profit margins
  • Gain positive reviews and recommendations from customers.
  • Reduce Returns

E-commerce Return Policy with a Return Management System

Return management is needed to execute your return policy. E-commerce and brick-and-mortar stores may employ a return management system. This approach helps handle returns efficiently and effectively. Setting up a return management system whether it’s your first time or you’re refining a problematic structure is necessary.

Using this management system application and optimization you could decrease revenue losses, severe returns, and customer unhappiness. That would reduce consumer return costs.

E-Commerce Return Policy: Examples

There is a variation of return examples that an organization can choose from. In certain cases, a fashion brand may have two or more depending on the garment being bought. These possibilities include:


In Exchange, Policy customers can return items for different products of the same price or the same product with the choice to pick a different colour or size. Profits are rarely lost on this path. Customers would have no choice but to pick a product since they won’t be refunded for the value paid.

Store Credit

Returning items for store credit means you can fully return the product for the same value in-store credits. Later the customers can use the store credit on the same website and store. The advantage of this option is that there isn’t a revenue loss. Unless you offer free shipping you still have accomplished a revenue.

Full Refund

A firm could also allow a full refund which allows customers to return the product and receive back the value they received in full. The problem with this type of refund is that you will completely lose all order revenue.

Conditional Full Refund

In certain products, in the fashion industry, all refunds and exchanges are prohibited unless the item is damaged or faulty. Items like sportswear, intimate wear, or swimwear are usually fully nonrefundable due to hygiene and health reasons. So, in certain policies, they do offer a full refund with the condition that the item sent was damaged or faulty. In this case, you will lose revenue as well.

Choosing an E-Commerce Return Policy

Half of U.S. and Canadian online buyers won’t buy from a site without free returns. 10% of consumers will cancel if they don’t like the return policy. 85% of purchasers examine return policies first before purchasing. 72% of customers will likely return if they have a pleasant return experience.

But Which Return Policy Should I Pick?

The return policy has a significant effect on income. When managing returns, keep this in mind. To boost brand loyalty and conversions, provide a fair returns policy while protecting company profits.

Exchanges and Store Credits are particularly practiced among e-commerce businesses. You can keep customers pleased while retaining the loss of revenue for your own business. However, the competition must be assessed.

The Competition Vs. Your E-Commerce Return Policy

To Take the opposite approach from your competitors to stand out in a crowded market is not necessarily true with online business return policies. If your rivals in the market don’t provide a generous return policy, you may set yourself apart by providing free returns.

However, if your competitors offer free or inexpensive returns, you shouldn’t buck the trend. Potential clients may have already developed a mindset that expects a free or cheap return policy from your competition. Something that companies like Amazon usually offer. So do analyze and consider your competition when picking a return policy.

The Ecommerce Return Policy: Template for 2022, 2023, and beyond…

Clear return policies benefit both consumers and business owners. Customers may make more educated purchases and, if required, seek refunds using this information. It also facilitates the development of standard norms that are resistant to inappropriate patronage revisions.

Include the following in your return policy:

1. The Items That Can Be Returned and Why

Identify and clarify returnable goods. For instance, Wayfair’s return policy excludes sale goods, gift cards, customized garments, assembled products, and Open Box items. Many stores also refuse to accept returns from the clearance section, intimate wear like underwear and bras, swimsuits, sportswear, socks, nightgowns, shape wears, and anything that may cause hygiene and health issues.

2. Exceptions In Returns

Do include the exceptions. For example,

  • Return of faulty intimate wear is permitted.
  • Defective Electric goods regardless of being open can be returned.
  • Garments washed or worn would be unreturnable.
  • Merchandise not returned in its original packaging is unreturnable.

For a list of exceptions, you could examine the return policies of your rivals or do a risk analysis of circumstances in which your firm may not be able to accommodate the customer’s return.

3. The Time Frame for Returns

Set a time limit for returns. A single time frame is ideal. Allow the same amount for all merchandise. Refund timeframes could be a 30,60-, or 90-day possibility. Though it only applies to returnable products.

4. Geographical Return Circumstances

Country-by-country modifications may be needed for Return Policies. For instance, returns in your local area or country may require only a small flat rate. But customers outside that geographical border may be required to pay the full shipping cost.

Or your organization may prevent some products from being returned due to distance and/or location, or at the buyer’s expense and risk of never being refunded due to missing shipment.

5. Return Fees

Do you want restocking fees or free returns in certain areas? Free returns are expensive for any business and aren’t encouraged unless your e-commerce company is profiting and aims to expand.

Charging a modest fee for every transaction may help shift some of the cost to the customer without hurting conversions. Customers won’t be deterred from buying if the flat fee is acceptable given the average order amount.

6. The Return Process Outline

Don’t leave customers in the dark on how to initiate a return. In your return policy, the method for initiating returns should be specified in full. Describe the procedure in detail if it must be completed online. If you are using a more hands-on technique, such as having customers complete a questionnaire or mailing the items, make sure to describe each step of the approach.

7. Returning Policies Online and In-Store

You should specify how your policy is impacted if you operate an online business and physical stores. You may wish to specify, for instance, whether customers may return online purchases in-store.

Once you have outlined the rules and regulations for your return policy using the template above you can set up the user interface for the Return Management System.

Setting Up a Return Management System for an E-Commerce Store

Using platform management widgets, retailers may explain their return policy and process online. Shopify, the most popular domain, has return handling options.

For a robust return management system, incorporate these guidelines.

1. Instant Help and Communication System

Make it easy for customers to communicate with you about returns. Specify the best email, phone, or messenger service to use on your online store. Provide step-by-step guidance on returns.

2. Automated Process Updates

Maintain constant communication with customers. Send consumers automatic emails and smartphone alerts throughout the return process.

3. Provide Shipping Reference

Most couriers include a tracking number. If you’re sending an exchange or sale, provide the shipping reference so consumers can follow the shipment. If the consumer is returning the merchandise, request a reference. You may choose to send the carrier yourself to pick up returns.

4. Return Product Check and Inventory

Your organization should implement a system to assure the quality of returned products. Check the product’s return requirements. Examine the returned merchandise to verify the customer’s reasons.

With Shopify’s widget, the mentioned procedure is automated. If you don’t use Shopify, you’ll need to code and add widgets yourself.

Ecommerce Return Policy: Best Practices for 2022 and 2023

There are certain practices that you would have to apply once you have set up your Return Management Systems.

1.   Refund Efficiency

Quick and efficient refunds matter, 72% of internet customers expect a refund within 5 days. Even if the return process is smooth, sluggish crediting might erode brand loyalty.

88% of customers would stop purchasing from a store with slow returns. A quick return and refund process will encourage customers to return.

2.   Return Metrics Analysis

Do a regular assessment of your return metrics. As a business, you should analyze:

  • The average rate of product returns
  • The Rate of Return for Every Merchandise
  • Comparative rates of returns across various product types and lines
  • Return metrics at peak business times like the holidays or during large sales
  • Profit margins across various local and international markets
  • Net Profit
  • Consumer satisfaction is based on reviews, interactions, and polls.
  • Key Performance Indicator Analysis
  • Find the common reasons for returns

An acceptable return rate in the fashion industry is 30% so do regular metrics to identify and update your benchmarks depending on your e-commerce business’s performance.

3.   Precise Product Description

Online shopping may be deceiving. 88% of customers consider product descriptions vital when making purchases. Accurate product descriptions decrease returns. Consumers are less likely to return a product that satisfies their expectations.

In e-commerce fashion platforms, you must provide:

  • Detailed product description,
  • High-quality imagery and videos,

Or best consider tools like Robosize’s Virtual Fitting and 3D Fitting Rooms which provide precise style recommendations for the consumer’s accurate size. It also shows the details of the garment on the client’s figure.

4.   Extend Return Duration

E-commerce shoppers expect a 30-day return window. While 5% of people return online purchases after 30 days. Flexible return policies lower returns by lessening the customer’s feeling of urgency.

5.   Quality Checks

Do regular quality checks. If an e-commerce website correctly depicts the product but you still receive many returns, the problem may be with the item. Test the product yourself and report any problems to the manufacturer.

6.   Trending Return Patterns

The returns method may involve a basic survey asking customers why they are returning an item. If choosing a return reason from an already present list, customers will likely respond willingly. Although you could even make it compulsory.

This information helps your firm locate the cause of a product quality issue, such as a garment mismatch, faults, sizing, or style issues.

If buyers return items because they’re too large, you may want to utilize AI and AR size recommendation tools like Robosize on your website. And therefore, the next best practice is a trending feature in 2022 and 2023.

7.   Virtual Fitting Rooms

Virtual Fitting rooms are the Fashion E-commerce trend in 2022 and 2023. These 3D fitting rooms may help you satisfy customers’ needs for rapid and inventive purchasing.

Accurate style and size recommendations minimize and prevent sizing returns. This size and style recommendation tool provides user activity statistics. It recognizes the most popular sizes, styles, age groups, sexual orientations, and body shapes to reduce returns and improve your return policy.

You Need More for Ecommerce Return Policy: Examples, Template, Best Practices for 2023 and 2023

We have included all the essential information on e-commerce return policies, examples, templates, and best practices for 2022 and 2023. However, having a robust return policy for e-commerce is not sufficient.

Although it is vital to implement e-commerce return policies efficiently. It would not guarantee a decline in returns. “How to Reduce Returns in the E-Commerce Fashion Industry?” must be researched.

Not every return is the result of a flawed policy.

Learning to minimize returns doesn’t need to be confined to your online fashion line, it can also be used for returns in conventional shops, much like the return policies stated in this article.


Leave a Reply

Your email address will not be published. Required fields are marked *