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Dealing with Product Returns
and Exchanges
 
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Sooner or later, you’re going to have to deal with returning and exchanging products. It’s all part of doing business online and offline as well.

However, processing returns and exchanges can also become a simple and trouble free experience for both you and the customer.

Return process


When a customer calls or sends an email requesting information on how to return a product, you can answer their questions over the phone or you can direct them to your return policy page on your website for step-by-step instructions and procedures on how to do so.
  
For example:

The customer should state and make clear their reason for returning the product to be sure that product is qualified for a return/refund, exchange or for store credit as well.
 
The customer must then obtain an RMA number, (Return Merchandise Authorization number) from you the reseller, before they can ship the product back to you or to the distributor.

If the product is defective then you can have the customer return the product back to the distributor or to the manufacturer depending on how much time has lapsed from the date of purchase.

A 15 to 30 day return policy is standard for most products sold online and offline as well.

If the product is found to be defective within a 30 day time frame then most distributors will replace or exchange the item and/or provide a money back refund for the product.

After the distributor has received the product from you or your customer then the distributor will refund you the money paid for the product and then you can proceed to refund the customers’ money back to their credit card.

However, if the product is found to be defective after the distributors’ return time frame has expired then the customer will have to deal directly with the manufacturer of the product in order to take advantage of the manufacturers’ warranty. And this is mostly dependent on the product category as well.

In the case of electronics for example, after 30 days, the customer will have to contact and ship the defective product back to the manufacturer. The manufacturer will then restore and refurbish the product back to a “like new” condition or replace the product with a new one. Restore, refurbish and replacement conditions are based upon manufacturer warranty guidelines. If the product can not be fixed then the manufacturer will replace the product with a new one.

Within the 30 day time frame, most customers will assume that they need to ship the product back to you unless they are instructed to ship the product back to the distributor instead, with an RMA number (Return Merchandise Authorization number) attached to the package. And this may be the fastest and most convenient way to handle product returns and exchanges.

When it comes to defective products, the total cost of the product and shipping will be credited back to you by the distributor in whichever manner you paid for the product.

If you paid for the product via credit or debit card then the distributor will return the money back to your card. If you paid for the product via EFT, (electronic funds transfer) from your bank account then the distributor will return the funds back to your bank account.
 

Dealing with exchanges

If the customer requested an exchange, then you would have to order the new product from the distributors’ website to be shipped back to the customer, after of course the customer has returned the original product back to you or to the distributor.
  
    
Dealing with returns

The fastest and easiest way to handle returns and exchanges is to create a “Return an Item” page on your website and add a simple on that page requesting the customers’ information and purchase information.

Once you receive the completed “Return/Exchange RMA” form via email, then you can let the customer know (via automated email response) that they will be receiving an RMA (Return Merchandise Authorization number) within 24 hours or less along with shipping instructions as well.

Then you can proceed to contact the distributor to request an RMA number from them. The distributor will send you an RMA number or give it to you over the phone.

Then you can send that same RMA number along with shipping instructions to your customer via email so that they can ship the product directly back to the distributor in order to save time and money on shipping expenses.

You can also have the customer ship the product back to you first and then you ship the product back to the distributor as well.


Dealing with refunds

If the customer requested a refund for their purchase then you can follow the same procedures for obtaining and sending the customer an RMA number and have the customer return the product back to the distributor.

Once the distributor has possession of the product then the distributor will refund the cost of the product back to you while you proceed to return the price of the product back to the customer, (minus shipping cost).
    
  
Reasons why customers return products

Adequacy: Many times a customer will return the product simply because the product was less than adequate for what the customer needed the product for; thus the product was inferior to what they really needed.

Mismatch: A customer may also return the product because of a mismatch between the product and the customers’ needs where the product was more than what the customer needed or simply not what the customer needed at all.

Non-user friendly: Sometimes, a customer may return the product because they found the product to be non-user friendly and/or poor or inadequate user guides made it difficult for the customer to use or make use of the product.

Buyers’ remorse: A customer may return a product due to buyers’ remorse where they may feel regret and remorse after making their purchase and thereby returning the product.

Defective: A customer may also return a product because the product arrived defective or became defective after the product was used.

There are many reasons why a customer may return a product and it’s all part of doing business in the retail industry. But it’s important to make the process of returning the product a simple and easy procedure for the customer and for you, the reseller.
  
    
Applying conditions for returns

In order to ensure a smooth return process for the customer and for the reseller as well, it’s important to make your return policy clear and easy to follow. Furthermore, it’s important to add “conditions” for the customer to abide by in order to be able to return the product. For example:


General conditions for returns

-The product must be returned within xx amount of days from the date of purchase. (A 30 day return policy is standard for most product returns)

-The product must be returned in its’ original retail packaging and the packaging must be in re-sellable condition.

-The product must be returned in its’ complete form with certification labels, UL listing, UPC codes etc, and all seals must be in their original place and not tampered with.

-The serial number of the product, or any identification numbers, must match the serial numbers on the package and on the invoice.

-The product must be free from any damage of any kind, including, but not limited to dents, cracks, scratches, abuse, defacement etc...


Summery

Returns and exchanges are all part of doing business online and offline as well. Although more returns take place offline than they do through online stores. Yet the return processes in itself can become as simple as you make it to be.

And if the process is handled in an organized manner then the entire return procedure can become trouble free for the customer and for the reseller as well.
   
   
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> Sample Privacy Policy
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Main Article Index Page
How to Succeed in Your Online Store Business
How to Start Your Online Store Business
How to Choose Your Niche Market
How to Create an Effective Business Name
Check for Domain Name Availability
How to Register Your Business Name
Should You Use a PO Box or Home Address
How to Choose the Right Business Entity for You
Sole Proprietorships Explained
Corporations Explained
Partnerships Explained
Limited Liability Companies Explained
Incorporate Your Business Online
How to Obtain Your Sales Tax License
The Best Selling Products Online (Intro)
1. Books
2. Computers, Computer Hardware
NEW:Start a Computer Reseller Business Online
3. Computer Software
4. Consumer Electronics
5. Apparel, Clothing
6. Toys/Video Games
7. Videos DVD’s
8. Health and Beauty
9. Music
10. Jewelry
11. Office Supplies
12. Linens/Home Décor
13. Flowers
14. Sporting Goods
15. Footwear, Shoes
16. Small Appliances
17. Tools and Garden
18. Gifts
About Distribution
Choosing the Right Distributors
How to Get Signed-Up With DropShip Distributors
Books Distributors, DropShippers, Wholesalers
Computers, Hardware, Software DropShippers
Apparel, Clothing Distributors, DropShippers
Toys/Video Games DropShippers, Wholesalers
Video DVD  DropShippers, Wholesalers
Health and Beauty Distributors, DropShippers
Consumer Electronics DropShippers
Music Distributors, DropShippers, Wholesalers
Jewelry Distributors, DropShippers, Wholesalers
Office Supply Distributors, DropShippers
Linens/Home Décor DropShippers, Wholesalers
Flowers Distributors, DropShippers, Wholesalers
Sporting Goods Distributors, DropShippers
Footwear, Shoes Distributors, DropShippers
Small Appliances DropShippers, Wholesalers
Tools and Garden DropShippers, Wholesalers
Gifts Distributors, DropShippers, Wholesalers
How to Find More DropShippers, Wholesalers
How to Open Your Online Store
How to Build Your Own Online Store
How to Build Effective Product WebPages
Building Your eStore with Website Templates
Designing, Planning and Organizing Your eStore
Implementing Graphic Elements
How to Create Your Own Company Logo
Create Search Engine Optimized Product Pages
How to Create a Content Rich Website
Choosing Your Web Host Provider
Create a Search Engine Optimized Domain Name
Check for Domain Name Availability
Top Web Building Software Programs
Top 10 Web Host Providers
Top 10 Complete eCommerce Solutions
Top Website Developers
All About Shopping Carts
All About Payment Processing
All About Merchant Accounts
Using PayPal as a Payment Processing Solution
More Merchant Account Providers
All Merchant Account Providers
Setting Your Prices
Setting Shipping Charges
Maintaining Your Online Store
Your Internet Marketing Master Plan
All about Search Engines
The Top Search Engines
Search Engine Optimization Guide Pt.1
Search Engine Optimization Guide Pt.2
All about Building and Exchanging Links
Purchasing Text Link Ads
All about Press Release Marketing
All about Pay-Per-Click Marketing
All about Discussion Forum Marketing
All about Article Marketing
All about Email Marketing
All about Banner Advertising
How Offering Free Shipping Can Boost Sales
All about 800 Toll Free Numbers
How to Beat the Competition
How to Run an Online Store Business
Dealing with Customers
How to Minimize Interaction with Customers
How to Deal with Customers via Email
How to Take and Place Orders
Paying for Products with Your Customers’ Money
How to Collect Sales Tax for Internet Sales
Avoiding Credit Card Fraud
How to Ship International and Overseas
How You Get Paid Each and Every Day
Dealing with Product Returns and Exchanges
Sample Return Policy and Procedures
Sample Privacy Policy
Sample Terms and Conditions Policy
Conclusion
Contact
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