Below, you’ll find a step-by-step guide to creating an effective returns policy, along with three ready-to-use examples.
Introduction
In fashion eCommerce, a well-designed returns policy is key to building customer trust and boosting sales. Approximately 30% of online purchases are returned—a figure that can rise to 40% during holiday campaigns and even 50% for high-priced fashion items. This is because buying clothing or footwear without trying them on involves a certain risk. In fact, 67% of customers review the returns policy before making a purchase, and a positive returns experience can turn uncertainties into lasting loyalty.
While returns do incur logistical costs, simplifying the process leads to more satisfied and loyal customers. Even though 80% of consumers expect free returns, only around 25% of fashion brands currently offer them. Therefore, having a clear, customer-oriented returns policy is not only about complying with regulations or managing risks—it also provides a competitive edge.
Step-by-Step Guide to Creating Your Returns Policy
1. Define Clear and Reasonable Return Periods
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Set the timeframe: Legally, in the European Union, customers have 14 calendar days to cancel an online purchase without any cost. However, many fashion retailers extend this period (e.g., 30 or even 45 days) to offer more comfort.
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Communicate from when the period starts: Typically, the return period begins once the product is delivered. Be specific (e.g., “30 days from the delivery note date”).
2. Specify Who Covers the Return Costs
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Free returns: If you can cover the return shipping, clearly state that (for example, “Free returns for both online and in-store purchases”).
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Fixed cost: If the customer must pay, mention the exact amount (e.g., “A fee of €4-5 will be deducted from your refund”) and explain alternatives such as free in-store returns.
3. Set the Refund or Compensation Methods
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Refund: Typically, offer a full refund to the original payment method within 7–14 days after receiving the returned item.
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Store credit or voucher: Alternatively, provide a voucher or store credit (possibly with a small bonus, such as an extra 5% added to the value) to encourage future purchases.
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Exchanges: Explain if exchanges are allowed (for a different size or color) and how they are processed, or clarify if the customer must make a new purchase.
4. Outline Product Conditions for Returns
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Condition: The product must be unused, in the same condition as received, with all original tags and packaging intact.
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Exceptions: List items that cannot be returned (e.g., underwear, personalized items, opened cosmetics).
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Usage guidelines: You might allow trying on the product to check the fit, but it must not be worn extensively.
5. Implement a Returns Management System
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Online platform: Use an integrated online returns portal where customers can enter their order number, select items to return, and receive a return authorization.
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Prepaid labels: Decide whether to include a prepaid return label in the original package or generate it on demand. Provide clear instructions on how to use it.
6. Provide Clear Return Shipping Instructions
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Preparation: Explain how to package the item (ideally in the original packaging) and include any required documents.
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Label usage: If a prepaid label is provided, instruct the customer to simply reattach it. If it must be printed, guide them through the process.
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Address information: If the customer is responsible for sending the item, provide the exact return address and recommend a tracked shipping service.
7. Offer Multiple Logistics Options
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Home pickup: Enable customers to schedule a pickup from their home at a specific time slot.
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Drop-off points: Allow returns at designated drop-off locations or postal offices.
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In-store returns: If applicable, let customers return items in physical stores, which often incur no extra cost.
8. Include Guidelines for Exchanges
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Direct exchange versus refund: Clarify whether customers can exchange the item (e.g., for a different size or color) or must return it and place a new order.
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Procedure: Describe the process (for instance, “To exchange an item, fill out the exchange form online and our messenger will pick up the item while delivering the new one”).
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Limitations: Specify any limitations (for example, “Only one exchange per order is permitted”) to avoid confusion.
9. Address International Returns
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Adapted timeframes and costs: If you sell internationally, state whether the same return period applies (or if it’s extended, e.g., 45 days) and clarify whether international customers cover the return shipping or if you subsidize it.
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Customs and documentation: Include instructions for any required customs paperwork to prevent additional duties or delays at the border.
10. Embrace Sustainability
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Reusable packaging: Encourage customers to reuse the original packaging for returns, which helps reduce waste.
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Consolidated returns: Suggest that customers combine multiple items into a single return package.
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Second life of products: If applicable, explain how returned items are either refurbished for resale or donated, reinforcing your commitment to sustainability.
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Proactive tips: Offer guidance (e.g., “Check our size guide before ordering to reduce unnecessary returns”) to minimize the environmental impact.
Three Examples of Excellent Returns Policies
Below are three complete, ready-to-use examples of returns policies. Each is designed to be customer-friendly and can be adapted by a fashion brand like Champion.
Example 1: Premium, Free Returns Policy
Easy, Free Returns
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Return Period: You have 30 days from the delivery date to return your order.
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Cost: Returns are completely free for all our customers.
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Product Condition: Items must be returned in perfect condition—unused, with all original tags and packaging intact.
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How to Return: Each order includes a prepaid, printed return label. Simply repack your item, attach the label, and drop it off at any designated drop-off location.
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Refund: We will process your refund to your original payment method within 5 working days after receiving your return.
Shop with confidence knowing that if something isn’t right, returning it is hassle-free and costless.
Example 2: Flexible Returns with Store Credit Option
Choose Between a Refund or Store Credit
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Return Period:
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Within 14 Days: Get a full refund to your original payment method.
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Between 15 and 30 Days: Return your item for store credit (voucher) with no expiry date.
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Cost: Returns in our physical stores are free. For home pickups, a fixed fee of €5 will be deducted from your refund or applied to your credit.
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Product Condition: Ensure that items are returned in pristine, unused condition with their original packaging.
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How to Return: Initiate your return via our online returns portal to receive a prepaid return label.
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Refund/Credit: Refunds are processed within 7 days after we receive your item, or your store credit is activated immediately upon receipt.
Enjoy the flexibility to choose your preferred compensation—money back or store credit—tailored to your needs.
Example 3: Global, Sustainable Returns Policy
Seamless International Returns with a Commitment to Sustainability
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Return Period: You have 45 days from the purchase date to return your order, making it perfect for international shopping.
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Cost: The first return on each order is free worldwide. For subsequent returns or discounted items, a small fee of €4 will be deducted.
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Product Condition: Items must be unused, with all tags and original packaging intact. Personalized products are not eligible for return.
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How to Return: Use our multilingual online returns portal to generate a return label tailored to your region. Choose between home pickup or dropping off your package at a designated location.
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Refund: Your refund will be processed to the original payment method within 10 working days after we receive and inspect the product.
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Sustainability: We encourage you to reuse the original packaging and consolidate multiple returns into one shipment to reduce environmental impact.
Experience hassle-free returns on a global scale while helping us protect the planet.