6: Product Returns

Topics

• Overview – Understanding Returns
• Return Policy
• Handling Returns
• Return Examples
• My Return Policy

Managing returns is a critical aspect often overlooked in a POD business. Efficiently handling returns can significantly enhance customer satisfaction and your bottom line.

In this section, you will:

• Learn how different product types, like customized items or clothing, impact return rates and the challenges they pose.
• Gain insights into typical reasons for returns, such as wrong sizes, damaged products, or misprints, and how to address them effectively.
• Understand your POD supplier’s return policies for misprints, wrong items sent, customer’s change of mind, or sizing errors.
• Learn strategies for managing return shipping costs, handling different return scenarios, and using technology to streamline the returns process.

By the end of this section, you’ll be equipped with the knowledge to create a clear, fair return policy, manage returns effectively, and maintain a strong commitment to customer service, all while protecting your profits and complying with legal requirements.

Overview – Understanding Returns

When selling physical products online, dealing with returns becomes an inevitable part of the business.

Poorly handled returns can significantly inconvenience business owners, leading to lost time, money, and customer satisfaction. This section will identify some of the key challenges in managing returns and offer actionable solutions to streamline the process, enhancing customer satisfaction and your bottom line.

Product Types And Their Impact On Returns

The product types in your POD store greatly affect return likelihood. For instance:

• Customized products: Personalized or custom-made items usually see lower return rates due to their uniqueness for each customer. However, reselling these returned items can be more challenging.
• Product categories: Certain categories, like clothing or shoes, face higher return rates due to size or fit issues. Conversely, products like wall art or phone cases often have lower return rates.

Common Reasons For Returns

To effectively handle POD returns, first understand common return reasons:

• Wrong size: Customers might order the wrong size or find the product doesn’t fit as expected.
• Damaged product: Shipping damage can lead to dissatisfaction.
• Misprints: Occasional misprints by your POD supplier.
• Wrong item: Mistakes in sending the correct item by the POD supplier.
• Mind change: Customers may change their minds post-purchase.
• Incorrect address: Orders placed with wrong addresses.

Understanding POD Supplier Terms

In a POD business, you, the entrepreneur, are the middleman between your customer and POD supplier.

Customers view you as responsible for delivering products that match your online store’s descriptions.

Conversely, you rely on your POD supplier to deliver defect-free products to customers.

Print On Demand Supplier Return Policies

Understanding your POD supplier’s policies is critical, as some return scenarios will be their responsibility. However, not all are covered by them. Knowing what your supplier covers informs your return policy.

For example, POD companies typically cover expenses for:

• Sent the wrong items.
• Shipped wrong sizes.
• Print quality issues.

POD supplier policies may vary regarding:

• Items lost in transit.
• Transit damage.

POD Suppliers typically do not cover:

• Customer’s change of mind.
• Customer’s sizing errors.
• Wrong address entries by customers.

Knowing your supplier’s policies is vital to creating your return policy. Uncovered scenarios by POD suppliers may incur costs if included in your return policy.

The Importance of a Return Policy

Should You Accept Returns?

I am not a lawyer (and this is not legal advice), but you must have a clear understanding of your legal obligations and adapt your policy accordingly.

• US Market: In the US, federal law requires refunds for defective products, but it doesn’t require a returns and refunds policy. Each state has product return laws for e-commerce businesses.
• UK & Europe Markets: In the UK and Europe, laws typically require returns and exchanges. In the EU, personalized or sealed goods may be exempt from return rights.

Legal Compliance: It is your responsibility to make sure your return policy adheres to local laws and regulations.

Deciding On Your Return Policy

As an e-commerce store owner, especially in the POD sector, you must choose a return policy. Marketplaces like Etsy mandate the declaration of a returns policy. Here are common options:

• Accept All Returns: This approach, while generous and trust-building, could increase return rates and business costs.
• Selective Returns: Consider accepting returns only for valid reasons like damaged products or incorrect sizes to reduce return volumes.
• No Returns: Opting for no returns, especially for customized products, may cut costs but potentially deter customers. Note that this might be legally contentious in some scenarios.

Writing A Clear And Fair Return Policy

Crafting a well-defined return policy is crucial for setting customer expectations and safeguarding your business. Include:

• Refund Policy: Define conditions for offering refunds, such as damaged items or incorrect orders.
• Return Shipping: State who bears the return shipping costs (you or the customer) and detail any related fees.
• Return Request Process: Offer clear instructions for initiating returns, including forms, time frames, and contact details.

Displaying Your Return Policy

Ensuring your return policy is easily accessible to customers is vital. Implement these methods:

• Product Descriptions: Summarize your return policy in each product description to inform customers before purchase.
• FAQ Section: Address return-related queries in your store’s FAQ section.
• Dedicated Policy Page: Establish a separate page on your website for your return, refund, and shipping policies, also encompassing other vital policies like privacy and cancellation.

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As you can see, creating a return policy is a critical part of your business strategy. Read this article for a deeper understanding that will help you craft the perfect return policy for your situation – BigCommerce: How to Write and Promote a Return Policy Customers Love (Includes Example Refund Policies From Real Ecommerce Businesses).

Efficiently Handling Returns

Working With Print Suppliers

Effective POD returns management hinges on partnering with reliable print suppliers. Here’s what they contribute:

• Return Shipping: Some suppliers manage return shipping for damaged or misprinted products. This convenience may come at a cost.
• Refund or Replace Policies: Suppliers usually refund or replace items that meet their return criteria, streamlining the customer experience.
• Communication: Keep in constant touch with your print supplier to track shipping delays or manufacturing defects.

Managing Return Shipping Costs

Return shipping costs can significantly impact your business. Consider these strategies:

• Cover Return Shipping: Paying return shipping can enhance customer experience but increases expenses. For defective items, I don’t ask for a return. For customer’s change of mind, they bear the shipping cost.
• Customer-Paid Return Shipping: This saves you money but might discourage purchases. It’s more suitable when the customer changes their mind.
• Prepaid Return Labels: Providing prepaid return labels simplifies the process and allows cost control through preferred carriers.

Returns Management

Embracing technology can streamline your returns process, minimizing errors and boosting customer satisfaction. Implement:

• Return Tracking: Use a system or spreadsheet to track and process returns efficiently. Organization is crucial.
• Customer Communication: Employ automated emails or a customer portal for updates on return status and timely responses to concerns.
• Inventory Management: Track returned items in your inventory, especially if they’re resellable or repurposable.

Return Examples

1. The customer ordered the wrong product or size
   • Scenario: A customer mistakenly orders a size L t-shirt instead of M.
   • Actions: The customer contacts you. You then place a new order with the POD supplier for the correct size.
   • Cost Implications: You or the customer bear the cost of the new product and additional shipping. Printful does not cover returns for buyer’s remorse or size exchanges.
2. The POD supplier shipped the wrong product or size
   • Scenario: You accidentally ship a size S instead of a size M hoodie.
   • Actions: The customer reports the issue. You verify the mistake and place a new order with the correct size.
   • Cost Implications: You cover the cost of the new product and shipping. The POD supplier may cover these costs if they make the error.
3. The product arrived damaged in shipping
   • Scenario: A custom mug arrives cracked.
   • Actions: The customer sends you proof of damage. You file a claim with the POD supplier.
   • Cost Implications: The POD supplier covers the cost of reprinting and reshipping the product.
4. The product was shipped, but the customer claims they never received it
   • Scenario: Tracking shows delivery, but the customer reports non-receipt.
   • Actions: You verify the address and contact the POD supplier to investigate.
   • Cost Implications: If lost by the carrier, the POD supplier may cover reprinting and reshipping. Otherwise, you may need to cover these costs.
5. The product was defective, misprinted, color mismatch, and/or poor quality
   • Scenario: A shirt arrives with a misaligned print.
   • Actions: The customer provides evidence of the issue. You submit a problem report to the POD supplier.
   • Cost Implications: The POD supplier covers the cost of reprinting and reshipping the corrected product.
6. The product arrived too late
   • Scenario: A custom calendar arrives after the New Year.
   • Actions: The customer contacts you. You review the order timeline and liaise with the POD supplier.
   • Cost Implications: Depending on the cause of the delay, you may offer a refund or discount. The POD supplier typically does not cover costs for delays.
7. The customer provided an incorrect shipping address
   •  Scenario: A customer enters an incomplete address, leading to a return.
   • Actions: You contact the customer for the correct address and arrange reshipment.
   •  Cost Implications: You or the customer are responsible for reshipment costs.
8. The customer no longer needed the product
   • Scenario: A customer orders a custom event t-shirt but the event gets canceled.
   • Actions: The customer requests a return. You review the request.
   • Cost Implications: Typically, you would not refund as this falls under buyer’s remorse. Any return or refund is at your discretion and expense.
9.  The customer experienced buyer’s remorse
   • Scenario: A customer changes their mind about a custom hoodie.
   • Actions: The customer contacts you for a return. You assess the situation.
   • Cost Implications: You decide whether to accept the return. If accepted, you bear the cost of the refund and potentially the return shipping.
10. The product did not match the description
    • Scenario: A product’s color differs significantly from the website images.
    • Actions: The customer reports the discrepancy. You verify and file a claim with the POD supplier.
    • Cost Implications: If the POD supplier is at fault, they may cover the cost of reprinting and reshipping. Otherwise, you might offer a refund or replacement at your expense.
11. The product did not meet the customer’s expectations
    • Scenario: A customer is not satisfied with the feel of a custom t-shirt.
    • Actions: The customer contacts you. You review their feedback.
    • Cost Implications: Typically, this is considered buyer’s remorse, and you decide whether to offer a refund or replacement at your expense.
12. The product was a gift
    • Scenario: A recipient doesn’t like a gifted custom pillow.
    • Actions: The gift recipient contacts you for a return. You liaise with the original buyer.
    • Cost Implications: Returns for gifts are typically handled as buyer’s remorse, with any refunds or exchanges at your discretion and expense.
13. The customer found a better price somewhere else
    • Scenario: After purchasing, a customer finds the same product cheaper elsewhere.
    • Actions: The customer requests a price match or refund. You review the request.
    • Cost Implications: You decide whether to match the price or offer a refund, bearing any associated costs.
14. The customer was wardrobing
    • Scenario: A customer buys a custom dress, wears it once, and tries to return it.
    • Actions: You assess the return request and check for signs of wear.
    • Cost Implications: If wardrobing is suspected, you typically would not accept the return. Any decision to accept is at your expense.
15. The purchase was fraudulent
    • Scenario: A fraudulent order is placed, and the product is shipped.
    • Actions: You identify the fraud and contact the POD supplier.
    • Cost Implications: You may face chargebacks or lose the product cost if the fraud is confirmed. The POD supplier does not typically cover these costs.

In each scenario, it’s essential to balance customer satisfaction with the financial implications of returns, adhering to your policies and those of the POD supplier.

My Return Policy

1. 1. My Commitment to Customer Service
      • I treat my customers the way I want to be treated and prioritize exceptional customer service and support. I accept this philosophy may result in a financial loss.
   2. Clear Communication of Return Policy
      • Website Visibility: Ensure your return policy is prominently communicated on your website and during the purchasing process.
      • Effective Handling of Queries: Have a responsive system for managing return inquiries and complaints promptly.
   3. Returns as a Business Cost
      • I acknowledge that handling returns is a cost of doing business with physical products.
   4. My Return Procedures
      • Defective Items: If an item is defective, I ship a replacement and let the buyer keep the original, saving them the hassle of returns.
      • Returns and Exchanges: I accept returns and exchanges if the buyer informs me within 14 days of receipt and returns the item in its original condition within 30 days.
   5. Protecting My Profits
      • Return Processing: Upon receiving a return, I inspect it, record it in a tracking spreadsheet, and add it to my stock.
      • Reselling Returned Items: Before processing new orders, I check my stock for any returned items. If available, I cancel the POD order and ship the item from my stock, provided it’s in as-new condition. This practice protects my margins and expedites delivery for the customer.
      • Vendor Quality Checks: If multiple returns originate from the same vendor, I conduct a quality review to address potential quality issues or changes, aiming to reduce defect-related returns and customer dissatisfaction.

   Summary

   Handling POD returns can be complex. However, a well-devised return strategy, a thorough understanding of your supplier’s policies, and careful vendor/product selection can significantly decrease the impact of returns on your business.