Reimbursing a customer for a product on Shopify because they want to return it is a sad reality. Yet, this happens most of the time. As an e-merchant, in order to preserve your reputation, it is essential to have a Shopify refund policy in place. It also allows you to renew the confidence of your customers and regain their confidence by providing them with prompt and professional after-sales service. How can we then make a refund on Shopify? In this article, learn what you need to think about when crafting a Shopify refund policy and why customers make such a decision.
Shopify Refund Policy: Why Do Customers Return Items?
Before learning how to refund a customer on Shopify, it is worth understanding the reasons why customers can request a refund for an order on Shopify.
First possible case
When a customer wants to return an item, it means they are looking for a refund. This may be because they were unhappy with the product received or the shopping experience or even both.
Second possible case
When a customer seeks a refund, it may be because the product is not as described. This may happen because you made a mistake when writing the product sheet and adding the photos. It may also happen that your supplier gave you incorrect information about the product. Whether or not you are at fault, take responsibility. In reality, the client does not care who is responsible for this fault. Since the customer is your priority, make sure they are satisfied.
Let’s assume that you are making an argument to the customer that it is not your fault, but rather that of your supplier. For that he should turn to the latter. Therefore, you take no responsibility. Thus, you are not looking for solutions to solve the problem. Be aware that in this case, the customer will no longer order from this online store. If the fault was with your supplier, he will reimburse you and send another product to the customer. If it doesn’t, you may need to consider switching providers. In any case, always remember to check and modify the information on your product sheets if possible.
Third possible case
The customer can request a refund in the event that the ordered item is damaged or defective. This problem should not happen if you have a good supplier. However, this may rarely occur. When this happens, be sure to bear all the costs instead of your customer. Above all, avoid making him pay for the return shipping. Try quickly to find a solution for him and avoid wasting his time.
Fourth possible case
Another possible ca is that the customer has ordered a product that does not suit him. This often happens with certain items (eg clothing). When making a product purchase online, there is no opportunity to try the item. Some suppliers will agree to cover the return, but others will not. In principle, they would have specified it in their policy. To do this, make sure you clarify this with your supplier. It can make a big difference.
Either way, do the basics to resend another product to the customer or refund them regardless of your supplier’s policy. Don’t forget that a very good after-sales service will build customer loyalty.
Create a Shopify refund policy
Before you implement your Shopify refund policy, it’s important to have it in place. To do this, there are a number of things to consider when writing it. However, however you phrase it, it’s important that you make it clear so that your customers know explicitly what is and isn’t included. Here are some things to consider. Specify:
- items eligible for reimbursement;
- full or partial reimbursement of consumers;
- the recovery of their money;
- offering credit in lieu of reimbursement;
- items that may be exchanged;
- non-exchangeable items;
- the time required for the return after purchase (perhaps around thirty days after purchase);
- the condition in which the items can be returned;
- should the items remain in the original packaging?
- after how many days will the refund be effective;
- will the shipping costs be borne by the customer;
- etc.
By doing this beforehand, the customer will know under which condition he can request a refund or not. You can always take a cue from the Shopify refund policy of big brands so you don’t forget the essentials.
Adapt your Shopify refund policy to that of your supplier(s)
If you’re dropshipping , it’s important that you know your supplier’s refund policies and can adapt to them.
Withdrawal period
Suppose your provider’s policy lasts for thirty days. For your part, you may be able to offer a period of twenty-five days to your customers. This will give you some leeway. So you can even take into account any delays or omissions in sending. Do the same if there are several products. Also, let’s say one of your suppliers accepts returns within 25 days, insist that the return must be made within 20 days.
Shipping costs borne by the customer
For example, if the customer asks for a refund, it is best to ask them to return the product to you. Delivery costs will be borne by you or your supplier. However, you can try to make your customer pay, but they just risk not ordering from you again.
The return address
When you are dropshipping and you have several suppliers, it is preferable that you do not specify the different return addresses. Manage them on an individual basis by asking the customer questions about the product and then providing them with the corresponding address.
Book a game on your site to make your Shopify refund policy visible
Once you’ve written your Shopify refund policy, you need to make sure your customers can see it. To do this, why not create a space on your website that you dedicate to refunds or exchanges. It’s important that those who visit your site get in touch with your Shopify refund policy. Therefore, add it to strategic places on your site, particularly:
- Checkout page;
- Item pages;
- Cart page;
- Page FAQ ;
- Etc.
Now that you’ve created a decent Shopify refund policy, let’s see how you can process a refund on Shopify.
Shopify refund policy: The steps to follow
Enforcing your Shopify refund policy promptly and appropriately shows that you care about customer service. This might motivate the customer to place more orders soon. You have the option of partially or totally refunding an order. In fact, there is a refund policy for Shopify that allows this.
Shopify Partial Refund
You have the option of making a partial refund. In other words, you only refund certain items of an order.
To issue a partial refund, go to your Shopify admin. Go to the “Orders” section which is in the drop-down menu. Next, click on the order you want to refund (i.e. an order that has already been confirmed). Following this, click on “Refund Items” and then enter the refund amount. Once it’s done, you just have to click on “Refund (+ the amount you entered)”. After that, your customer will be refunded to the payment method they used to make the payment. For example, if he paid with his credit card, he will receive it in his bank account. If he did it by PayPal, he will be refunded directly to his PayPal.
Shopify Full Refund
Refunding an order involves sending the payment back to the customer. When you refund an order, you can restock the items and send an email notifying the customer of this.
To issue a full refund, go to your Shopify admin panel. After that, click on “Orders”. Then, click on what you want to refund by pressing “Refund”. At this level, you will be able to see the details of this order such as product name, quantity, price, etc.
Next, enter the quantity of items to be refunded. The full refund amount is discounted, minus any shipping charges there may be. You can change this amount manually. Then, enter the amount of shipping costs to be refunded in the section indicating “Shipping”. This step is optional. You can also choose whether or not to enter the reason for the refund.
In case you don’t want to send a refund confirmation email to the customer when you issue the refund, leave the Send notification box unchecked. This box usually stays checked when you are not changing it. Finally, click on “Refund” to finalize the refund of the customer’s order.
Shopify refund policy: How to manage customer returns in dropshipping?
If you are dropshipping, the refund process may vary depending on your suppliers. Here is how the refund can take place.
Request for a refund from the customer
It is important that you can determine why the customer is requesting a refund. Then contact your supplier to request the return address. Likewise, you should make sure to apologize to the customer. Whether it is your fault or that of your supplier. Then, reassure your client and tell him that you will do everything to resolve the problem as soon as possible.
Your provider approves the refund
Now you need to provide the customer with the return address. You will likely need a label depending on your supplier’s return policy. It is normally up to your supplier to provide it for you.
The customer will be refunded or will receive a new article
As soon as the package has arrived at its destination, process the refund, then send the customer a confirmation email. This will allow you to make sure that everything went well. On the other hand, if he wants a replacement, send another product.
When should the refund be made?
You may wonder if you really have to reimburse your customers? Know first of all that from a legal point of view, there is the Hamon law which protects the customer. According to this law, a customer has the right to withdraw from his purchase after 14 days. So, yes, you have to reimburse your customers.
You can refund after receiving the parcel or when you receive the confirmation of sending the parcel with the tracking number. In case the payment has been made via Paypal, you can wait to receive the package since the refund will be made without delay. On the other hand, if your customer had made the payment by card, it is preferable to proceed with the refund as soon as possible, that is to say after having received the tracking number.
In summary
It is true that to avoid reimbursements as much as possible, the customer’s honesty plays a huge role. For example, if the customer says they received the product in a faulty condition, you have no way of verifying whether this is true or not. What is good and a little reassuring is that there are more well-meaning people than bad people. The goal is to prevent this from happening as much as possible. Even if the refund remains a sad reality, try all the same to guarantee your customers the most professional and satisfactory after-sales service possible.
If you are looking for a strategy to reduce refunds is to promote customer reviews on your site . Encourage customers to leave more reviews. If a customer sees positive reviews , it will influence their perception. If they read good product reviews and your Shopify refund policy, that will be a plus for you.
