Write Refund And Exchange Policy

Refund and Exchange policy is the first thing that 68% of the shoppers check before making a purchase from an online store.

That is, out of every 10 buyers, 7 of them visit your Refund Policy Page, read it, and after being convinced they proceed with the purchase.


What if your refund policy isn’t very convincing, and is unfair to the buyers? Or, what if your policies are perfect but are not easy to understand?

rma meme 1

How will your sales get affected?


In that case, you will lose those 7 out of 10 potential buyers. Those buyers which you have acquired with all your amazing marketing strategies and skills. Those buyers were just one step away from the purchase.

Losing such potential buyers at the last stage of the buying process is more degrading to the business than those customers lost at the initial stages.

The only solution to avoid this adverse situation is to re-check or re-write your refund policy so that is simple, convincing, and fair to the buyers. At the same time, it shouldn’t hurt your business.

In this article, I will guide you with some powerful tips to write a perfect refund policy that does not confuse buyers and reduces the risk of churn.

Blog’s Outline…

But, before writing down a refund exchange policy, make sure you really offer an excellent RMA solution to your buyers.

And, therefore, let’s dedicate the first section of this article to the RMA setup.

Set Up Return Refund And Exchange If You Haven’t Done It Yet

If you have recently started your online store business, or are planning to start an online store soon, then setting up return and exchange is equally necessary as setting up the checkout flow or other fundamental processes.

Note: For those who are happy with their existing return and refund feature can skip this section and continue reading about the refund policy. But, if you are facing any discrepancies with your existing refund and exchange solution for your store, continue reading.

For WooCommerce stores, Return Refund and Exchange for WooCommerce is the top-rated plugin for the RMA solution.

Return Refund and Exchange for WooCommerce

Get WooCommerce RMA For Return, Refund & Exchange Now!

It is an all-in-one solution for return, refund, order cancellation, exchange, and wallet systems, with an exceptionally efficient communication system between the admin and the buyers. The plugin allows the admin to do full customization that helps to smoothen the process with individual tastes and business needs.

Activation and Installation of the plugin are easy and quick. Still, if you face any issue, you can follow the step-by-step guide using the full dedicated article on it.

Complete Setup For Free & Premium Return Refund and Exchange

I am sure that the above resources are more than enough to easily get you started with a return refund and exchange for your WooCommerce store. And, if there are still any issues while setting up the plugin, the support team is ready to help you 24/7 for the premium users.

Having a perfect return refund and exchange for your online store is very necessary for customer satisfaction. A satisfied customer has a higher lifetime purchase and thus benefits the growth of business in the longer run.

Thus, by providing the return, refund, and exchange facility to your buyers, you may lose a sale but you win a customer that will have a much longer and higher purchase possibility than few returning sales.

Now, let’s get started with what we actually have targeted in this blog — writing down a refund and exchange policy.

What Is A Refund And Exchange Policy?

As we know;

Refund and exchange is a negative flow of your business cash.

This negative flow can be embraced if it gives satisfaction and happiness to shoppers. But, some buyers exploit refunds and exchanges through unfair tricks.

Yes, you heard that right…..

On A Serious Note-

  • According to Appriss and the National Retail Federation, return scamming is on the rise, costing US businesses more than $18 billion per year.
  • Professional return fraud groups are now promoted on web forums everywhere on the web.
  • To safeguard oneself from serial returners and consumer abuse, retailers should take specific countermeasures, such as improving product information and leveraging technological innovations.

fradulent meme

Such wrong practices are termed Frauds.

Fraudsters purchase the product, use it a couple of times, and return it. Such practices would damage the essence of your online business, turn you into losses, and scatter your business.

And so,

Rules and regulations in your return and exchange process become a must-have for eCommerce stores to keep your refund and exchange under strict scrutiny and avoid every possibility of wardrobing. This set of rules is known as the return and refund policy.

Now, What’s A Good Refund & Exchange Policy?

A good refund and exchange policy is one that filters out the fraudster cases and gives no space to wrong practices, and at the same time, does not cause any difficulty for valid refund and exchange requests.

return and exchanges

Designing such rules and regulations is challenging and equally important for your business.  And, this article has the sole purpose to help you with tips and the process to write down one such effective refund and exchange policy for your online store.

Note: If you are dealing with GDPR compliance issues, do add this GDPR WordPress plugin to your website.

Before moving to some great policy writing tips, let’s check a real example of truly good eCommerce return policies.

Real-Life Examples Of Refund-Exchange Policy

The majority of online stores have a return policy as their benefits are undeniable.

When writing your refund policy, taking examples from other stores for guidance is a very good practice. And, so we bring you an inspiring example. If you feel limited by one example, check out the footer of some of your favorite online stores.

Man Crates

This is an awesome example of a refund policy that I appreciate and after reading you would too.

Man Crates is an online store that sells men gifts. Its refund policy is so convincing, and easy that anyone can fall in love with this store.

Here’s the return policy.

return policy display points

They are kind and helping with their words. Their refund policy is supportive and short, and they handle their refund and exchange directly through emails or calls. “Customer Champions” is what they call their support team.

They also guarantee return satisfaction with their concept of “High-Five Guarantee“. Here’s what it means.

What's the High-Five Guarantee?

I could sense the level of confidence and satisfaction a reader of this refund policy will get. And, so, this is not just a refund policy page but a perfect sales promotion and customer retention page.

Tips To Write A Perfect Return Exchange Policy

Writing a refund and exchange policy for your online store requires good research, as that directly affects your revenue. The tone, the flow of sentences, and choices of words and phrases; all matter.

These tips which I am going to reveal now will help you to write down a perfect refund and exchange policy for your online store.

Let’s get started:

Pro Tip: Take Refund and Exchange As An Opportunity To Win Customers

Buyers returning the products back to the store is not a good trait for your business. It’s in fact against your business. An excessive amount of refund and exchange requests can harm your business.

However, it’s hardly possible to eliminate refund and exchange requests from an online store. Particularly the festive season sales, when the refund and exchange rate climbs to a peak of about 30% of purchased products.

And, if you dare to remove the RMA facility, you will ultimately lose your customers.

So, the best practice is to take your returning customers as an opportunity rather than as a burden. You could upsell or cross-sell, or simply give them a pleasant experience that brings them back for their next shopping.

Stay on your customer’s side, try to give them the most convincing refund and exchange.

customer service meme

At the same time, your return policy is the easiest and the most appropriate way to restrict improper return and exchange requests and protect your business from wardrobing cases.

1. Make It Easy And Simple To Understand

Buyers need immediate solutions for their refund-related problems.

A simple and easy-to-understand written return policy can give quick solutions and hence they naturally develop a positive preference for your brand.

To make it simple, you can include tables, as shown below.

return and exchanges

Furthermore, including Frequently Asked Questions (FAQ), makes it really quick for buyers to jump straight to those questions whose answers they are looking for.

2. Be Original. Avoid Copy Paste

Some beginners make mistakes copying refund policy pages (or even other similar pages like privacy pages) and making required changes. This can be risky.

The best is to write down a purely dedicated refund and exchange policy for your brand, that has traces of your brand identity and tone.

3. Using Templates

Definitely, writing policies, rules, and regulations, etc., isn’t fun.

Is there any way you can do it quickly and nicely?

Yes! Templates.

Using templates, specific to your niche, product, and store type can help quickly get the work done. Terms feed return and refund policy generator can help you with that. All you have to do is to fill in the details about your business and it will generate a return policy for you.

Although it is an easy solution, it has no personal touch to it. So, make it worth adding your own ideology to it. Because you know about your brand more than anyone else.

4. Draw Clear Border Between Refundable, Non-Refundable Products and Services

Your refund policy page must clearly enlist the product or type of products that are refundable from the non-refundable products. This clear distinction should be based on fair and logical thoughts.

For products that are costly and fragile must be refundable, while other products such as eatables, personalized products, gift cards, etc can be listed out of refundable categories.

5. Mention The Time Limit Clearly

This is a critical point. This is the first thing shoppers check in the refund policy And, so you must mention this as early as possible.

Here’s an example.

return policy highlight

6. Who Will Pay The Cost Of Return

Your refund policy must clearly mention the cost handling of the product refund. The best practice is to provide free return shipping.

But, if you have planned to charge anything from your customer for the return shipping, then the return policy is the best place to mention it.

7. Focus On Your Strong Points

Don’t make an all-round weak refund policy. Always have at least one strong point that you can use to hook your shoppers.

For example; SmartBuyGlasses offers 100 day sof return policy, which is really a good attraction for shoppers.

return policy

And they have prioritized this feature right at the beginning of their return policy to hook their shoppers immediately.

But, as you read their guidelines further, you would realize that these 100 days of liberty is not as useful as it might seem. The customer will have to pay all the charges incurred in the returns delivery, and several other restrictions.

exchange policy

Further, the product must be unused, with original packaging, tags, and manufacturer seal. And, the products are checked on return and if found used, the refund will not be made.

With so much restriction, 100 days of refund policy can’t be much celebrated.

8. Don’t Blame Your Buyers For Making Mistakes

Never blame your buyers for making wrong purchases which leads to refund requests. Be neutral about it. Because there is no fixed reason for a return request for unconvinced products.

Sometimes it’s buyers, sometimes it’s retailers, and other times it’s just a product that does not suit the buyers. So, focus more on solving the solutions of your unhappy customers instead of blaming anyone for it.

Essential Tip- Make Sure Your Return & Refund Policy Is Easily Accessible

Before making a purchase, more than two-thirds of potential shoppers will review your return policy. Customers might just as well ignore a policy if they can’t discover it or comprehend it. Once you’ve created a transparent return policy, ensure the guidelines are easily accessible.

This entails posting the policy in as many locations as feasible. Your terms should be readily available from every page of the website (including checkout), as well as on invoices and other customer records, receipts, and even packaging.

Let’s dive deep into this and let you understand well the crucial areas where you can display your return policy….

Where To Display Your Refund Policy???

After writing down one such amazing refund policy for your online store, you definitely will not want it to hide from your customer’s reach.

The obvious question is how to make it more discoverable to your buyers?

And for that, the refund policy needs to be exposed at the most relevant places on the website where your buyers are most expected to look for.

Here’s a list of the most appropriate places where you must display your refund exchange policy.

1. FOOTER Of Your Website

Add your refund policy page in the footer menu of your website along with other customers’ services. Since the footer menu is visible on all pages of your website, hence it’s a universal option for customers looking for a refund policy page.

return policy display

2. The PRODUCT And CART Page

Buyers on the product page are closer to the purchase decision. And, if they knew that the product is refundable, it would encourage them to go for purchase.

Thus, the link to the refund policy page on product pages helps to improve customers’ purchase decisions.

buyer protection tag

3. FAQ Page

Frequently Asked Question (FAQ) is the common section that shoppers or visitors look for when they face any issue. Including the refund policy page link to your FAQ can be a good way to help your shoppers easily find your refund policy and solve their related queries.


That’s really good hard work that has brought a shopper to the checkout page. And, losing such customers just because he failed to find out your refund policy is worse.

So, clearly display your refund policy on the checkout page of refundable products. Encourage their purchasing action by telling them that they have a return and exchange facility.

To Sum Up…

Having a perfect and well-written return policy for your online store is a gem for your business.

It helps to not just manage the return and exchange but also build a strong customer relationship, improve customer experience, and the overall impact of the growth of your online store.

The above tips will help you to write one such refund policy.

At last, caring for your customers is caring for your business.

I would like to know your opinion on the importance of a refund and exchange policy for an online store. The comment section is waiting for you.

About the Author: Bhagyashree A Awasthi

A dev-turned-writer, Bhagyashree. She has been this way because of her passion for reading and blogging. She has always been an avid reader of; books, narratives, etc. Her urge to explore new things is what fuel her enthusiasm. Reading, being outside, and traveling are her favorite free time activities. Rather than just a mere profession, she views content creation as an emotion.

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