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Holiday Prep: Is Your Return Policy Lacking?

The holidays are right around the corner. For most retailers, this means business is about to start booming, contributing to the more lucrative time of year. However, if your return policy is too rigid or unreasonable, you could be losing out on loyal and returning customers this season. In this article, we’ll explore the biggest return policy snafus and how you can avoid them. Before reading on, protect your operation with a comprehensive and iron-clad Miami Retail Insurance program.

Mistake #1: You don’t offer cash back.

Buyer confidence starts with knowing they can get their money back if the item they purchase doesn’t work out. While you might not want to lose that additional sale, only offering store credit turns would-be buyers off.  If a customer returns something, offer to find them a new item instead. However, if they just want their money back, it’s best to grant their payment back in its original method, whether it was cash or credit card.

Mistake #2: Returning is inconvenient.

Nearly two-thirds (64 percent) of shoppers in the National Retail Federation report say if they have trouble making a return, they would be leery about ever shopping at that store again. During the busy holiday shopping season, shoppers who need to return something are more likely than ever to dread the task. Make it as convenient as possible by training all your employees on how to handle returns and, when necessary, opening a separate returns line at the point-of-sale, says Small Business Trends.

Mistake #3: Your return policy is unclear.

Avoid making a return policy with too many exclusions and fine print. If potential customers won’t understand if their purchase is eligible for a return, chances are, they won’t buy it at all. Post a clear return policy at cash registers and print the policy on the receipt.

Mistake #4: You have a small return window.

A shorter return window encourages people to make the return they might be thinking about before it’s too late. A longer window, while it might seem counterintuitive, is  more beneficial to your bottom line. As the holiday season approaches, consider increasing your return window.

About Advanced Insurance Underwriters

At Advanced Insurance Underwriters, we offer specialized programs to safeguard retailers like you. For more information about our products, give us a call today at (800) 660-7734.

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