E-Commerce -- Doctor Ebiz Q&A

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Guarantees and Returns

"How do I handle returns? What does "satisfaction guaranteed" really mean, and should I say it? How can I be customer friendly and still profitable?" -- Dr. Doug Rybarczyk

So long as you represent your products fairly and they are of good quality, the return rate is likely to be substantially less than 10%. "Satisfaction guaranteed" means that the customer defines whether or not he is satisfied with the product. Be careful, however, to spell out your return policy in detail (such as products must be returned in "as new" condition) and set a time limit (say 30 or 60 days) during which you'll honor the guarantee. Study guarantees and return policies of other companies in your industry for guidelines.

You're much better off being generous than stingy with your guarantee. Though you will be taken advantage of occasionally, you will sell many more products with a strong guarantee than without it. When you do get a return, honor your guarantee without question. You're building a business for the long run. A satisfied customer will trust you more and be more likely to buy from you again, while an unhappy customer will tell eight others about how poorly he thinks he was treated.