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There's no way a business person likes the idea of earning a profit. They are costly, time-consuming, unpleasant, and tedious. But do returns always have to be so terrible? Do return policies actually increase the success of your company? The answer is -- definitely.

The following are seven reasons for returns:

1. The purchaser purchased the incorrect product
2. They don't need the item
3. The product didn't match its description.
4. A gift purchase was incorrect
5. The item was damaged when it arrived.
6. The store shipped the wrong item.
7. The purchaser purchased, then used, then tried to return the item.

Returns and return policies are a crucial part of your business plan. 66% of customers go through return policies prior to purchasing and 80 percent won't buy from your company again if they find it difficult to return an item.

An ineffective or uninformed policy can hurt your reputation quickly via negative word-of-mouth, social media posts, and poor reviews on websites such as Yelp, Google My Business, Foursquare, and many others. As there is an estimated 72% of consumers publishing at minimum one online review of their business, it's best to take this seriously.

But a good return policy could benefit your business by building the loyalty of customers, enhancing engagement, and generating an increase in positive publicity. The result is more purchases, and higher sales.

Keys to an effective return policy

Here are a few suggestions that can make the return process less stressful and also more lucrative.

1. Write down a concise, explicit policy

We'll start by defining the fundamentals of formulating a concise and clear policy that is written in a form that is easy to understand. A well-considered and detailed statement will mean less miscommunication, confusion, hassle, and frustration for your employees and customers. Be aware that in the event that you are also using an external sales channel they may have their specific return policy that needs to be honored.

A good return policy needs to include:

• What can and cannot be returned.
• What items can be exchanged or returned.
• The deadline for returns after the purchase date.
• The required condition of returns.
• If a photo ID or receipt is required.
• What is the best way to get a return/exchange.

DRYFT Fishing's policy offers options for return and exchanges. They even go above and beyond with specific directions on the best way to pack products, details on what should be included inside the box, as well as a link to a super simple form so there's no confusion. They even suggest a shipping carrier.

TermsFeed contains additional examples of policies for return and refund and templates that you can download for free.

 What if your store does not accept returns?

Potential customers are still going look up a return policy, so put up a website with the information. The page should clearly state that it is not your policy to accept returns or give refunds.

2. Make your return policy easy to find and understand

Your website should include it in the footer navigation, FAQ page, Product page cart, checkout as well as any other customer support or service menus. Include it in your confirmation or follow-up emails and receipts.

Make sure you have one page with all of the details. If your policy includes several special conditions on different products, you should start on your main page with general information and link to the finer details on separate pages. Include an introduction at the top of the page, which emphasizes your commitment to providing a great service.

3. Flexibility and leniency

According to an University of Texas study, the more flexible return policy led to increased purchase. Researchers also found that extending the time for returning resulted in fewer returns.

A laid-back return policy is the Swedish home furniture company IKEA and allows for returns of items that are not opened within one year and opened items within six months. The friendly and efficient return page is a great model to follow. Their generous nature is matched by their reputation for quality and satisfaction with their shopping experiencecertainly the key factors in their success.

4. It's effortless and simple

As well as the advice previously mentioned, the procedure or platforms used to handle returns should be easy to master and effective in use. If you're a customer, you appreciate a service that makes it easy to make returns as well as refunds (more about this in the future).

5. Be friendly

The two parties don't always enjoy the returns process and your customers aren't always thrilled. Don't make things worse through being disrespectful or upset in the course of your exchange. Be responsible and don't blame the client. Keep in mind IKEA's headline on the very top of their returns webpage: "It's OK to change your mind!"

6. Returns are a great sales incentive

Some stores extend their return period for members. Others make the process easier for those who subscribe to emails, which will be able to reach at any time with future discounts and sales.

If necessary the customer service rep could suggest specific options to an item being returned (like an alternative size or features). They might even offer a discount for the product that is new. This can flip a return to an exchange, and offer your shop a second opportunity to provide an item that is in line with the requirements of your customer.

7. Watch out for scams

Returns that are fraudulent is a serious and growing problem. Most common schemes involve returning items that were stolen, using false or stolen receipts, purchasing a purchase and then returning it.

Return fraud costs businesses $25.3 billion by 2020, According to National Retail Federation. One of the challenges in fighting fraud is that most of the measures you would adopt to tackle this issue involve making your return policy more stringent. The measures to combat fraud could include the requirement of receipts or ID, fully complete packaging for your product, shorter timeframes, and allowing only store credit or exchanges.

Each business owner must take a long look at their specific situation and consider balancing the need for fraud security against the benefits of a flexible guidelines. Think about: How big is the risk (or an ongoing issue) could return fraud pose to my company? With an eye for the balance of your account, you can adjust your return policy accordingly.

The return tools

offers options for both automatic and manual refunds. Automatic refunds change the order status and reverse the charge. Manual refunds change the status of an order, but they require you to manually return money to the client.

This Smart Refunder extension makes things even simpler by making it a fast, simple, and automated procedure. The extension allows you to offer immediate refunds to customers, let them request a return from their account page, as well as offer both full and partial refunds. Furthermore, with Smart Coupons, the smart coupon extension it is possible to issue either cash refunds or store credit.

Returns are the inevitable aspect when running an online store. Instead of turning it into an issue, think of it as an opportunity to set yourself ahead of the pack. You can turn less-than-thrilled customers to your most loyal customers with a an amazingly pleasant and human-centered strategy.

has the tools to simplify the return process. but it's your responsibility to establish your own policies and set your brand's attitude towards this essential part of customer service.