How to build your Returns Policy

Return management is a key element for any online store. A clear policy increases customer trust and reduces post-sale friction. Here are important points to make your policy tailored to your needs.

HOW TO BUILD YOUR RETURNS POLICY

Managing returns is a key element for any online fashion store (or any sector, really). A clear, transparent policy increases customer trust, reduces post-sales friction, and enhances your brand image. Below, you’ll find the main points to consider when creating or refining your returns policy, illustrated with real examples (but without mentioning brand names).

1. Return Deadlines

Minimum legal period: In the European Union, the legal withdrawal period is 14 calendar days from receipt of the order. Some stores only offer this minimum period, while others extend it to 15, 30, or even more than 45 days.
Staggered deadlines: Some policies provide a cash refund if returned within the first 14 days, and after that (up to a 30-day limit) issue a store credit or coupon with no expiration date. This provides flexibility without exceeding each business’s limits.
Extended holiday periods: During special times (like Christmas or sales), some stores expand the return window to improve the customer experience.

Recommendation: Choose a base period that covers or exceeds the legal minimum, and consider adding strategic extensions for special occasions.

2. Return-Related Costs

Free returns in-store: Some brands allow you to return items at a physical store at no cost.
Fixed fee for home pick-up: It’s common for the store to deduct a fixed fee (e.g., €4 or €5) from the refund, or to charge based on the number of returned items.
International shipments: Many companies apply variable or fixed costs depending on the origin country. Some charge a single rate, while others let customers handle shipping on their own if they can find a cheaper option or prefer a specific carrier.
Free returns: There are notably customer-friendly policies that cover return shipping costs (at least for the first return) to foster trust, though exceptions may apply (for instance, an additional fee for a second return on the same order or if the total item value is very low).

Recommendation: Clearly define who bears the shipping cost for returns. Offering free options (in-store or for the first return) boosts satisfaction and loyalty.

3. Refund Methods

Refund to the original payment method: Most stores reimburse via the same payment form used (card, PayPal, bank transfer, etc.).
Gift card or coupon: Some policies issue a gift card rather than cash, especially if the return occurs outside a specific timeframe or for certain product categories (discounted items, personalized products, etc.).
Price adjustments on exchanges: Where the replacement product is more expensive, the difference is paid before shipping. If cheaper, the difference is refunded or deducted from the total cost.

Recommendation: Provide a prompt monetary refund (with an estimated timeframe) and, if appropriate, offer a gift card option for those who want to keep shopping with you.

4. Product Exchanges

Free size exchange: Some brands cover 100% of the first size exchange within a timeframe (e.g., 15 days), including pick-up of the original item and delivery of the new one.
Simultaneous swap: In some cases, the courier delivers the new product and collects the returned item at the same time, speeding up the process.
Sequential process: Others first need to receive and check the returned product, then send out the new size or replacement.

Recommendation: Offering the possibility to exchange items (not just return) improves the customer experience. If your logistics support it, “doorstep swap” is highly appreciated.

5. Condition of the Returned Product

Impeccable condition: Commonly, the product must be unworn, unwashed, with all tags and original packaging intact.
Accessories and hygiene: For shoes, the original box should remain undamaged; for swimwear, the hygienic liner must be intact; for personalized items, returns are usually excluded.
Right to refuse or reduce refunds: If the product isn’t returned in suitable condition, the store may reject the return or refund only part of the amount.

Recommendation: Clearly explain the necessary conditions. This prevents misunderstandings and preserves product quality in your inventory.

6. Regional Particularities

Different costs: Different rates are often charged for mainland, islands, special customs territories, or international shipments.
Country restrictions: Some policies don’t allow exchanges in certain destinations (due to customs complexities), only refunds.
Customs transparency: In areas subject to tariffs, clearly state who covers the cost (the store or the customer) and how it’s managed.

Recommendation: Adapt your policy by location, but maintain consistent core principles. Clarity about customs duties and extra costs is key to avoiding surprises.

7. Comparative Example

Below is a quick comparison chart showing four different approaches (Case A, B, C, and D) to illustrate how each store can structure its returns policy:

Aspect	Case A	Case B	Case C	Case D
Return Deadline	14 days for a refund; up to 30 days with store credit	15 days from receiving the order	14 calendar days from receiving the order	45 calendar days from the purchase
Return Cost	~€5 locally (free if returned in-store)	€4.50 in mainland (up to 4 items), free in-store; international based on case	Ranges by number of returned items (from €4.95 to €19.95)	Generally free; €4 fee in certain cases (discounted items, second return, low order total, or UK returns)
Refund Method	Cash refund (14 days) or store credit (up to 30 days)	Always refund to the original payment method; no store credits used	Money to the original method; optional store credit	Money to the original method; no store credits
Exchanges	Free only for certain products (e.g., pajamas) within 14 days	Yes, first exchange free with door-to-door swap	Yes, but sequential (must receive return first, then send the replacement)	Yes, except in certain countries (e.g., no exchanges in the UK)
Product Condition	Must be new, unused, with original packaging and protection	Must be new, with tags; shoes in original box; no personalized items return	Must be new, with tags and packaging; specific restrictions for accessories	Must be new, in original packaging; no returns on customized or special pre-order items
Shipping Method	Home pick-up (fixed fee) or in-store drop-off	Home pick-up or drop-off in store	Customer takes the parcel to the post office or the showroom	Home pick-up free for the first return; no in-store returns for online orders
Country Adaptation	Different costs by region or country of origin	Specific rates for islands, international, and customs	Defined rates by region, EU, wider Europe, etc.	Global unified policy; exceptions for certain countries (e.g., a surcharge)
Notable Highlight	Coupon with no expiration date after 14 days	Immediate door-to-door swap service for quick exchanges	Flexible method: you can drop it off personally or use the provided label	Very long return period (45 days), with mostly free international returns

9. Final Recommendations

Clarity and simplicity: Explain each step simply so customers know exactly what to do if there’s an issue.
Offer multiple options: In-store returns, home collection, online platforms, etc.
Use transparent language: Clearly specify deadlines, costs, and processes.
Adapt to your logistical reality: If you can’t cover all free returns, at least offer it on the first return or for in-store drop-offs.
Focus on the customer experience: Consider immediate exchange services or easy labeling/pick-up options. A solid returns policy can boost loyalty and repeat purchases.

Ultimately, building a solid returns policy means balancing the company’s interests with customers’ needs. By setting clear conditions, reasonable deadlines, and flexible shipping choices, you’ll achieve a positive post-purchase experience that strengthens your reputation and builds trust in your brand.