While it is nice to assume that every gift will be exactly what a recipient is looking for, the reality is many businesses will encounter consumers looking to exchange or refund items now that the holiday season is over.
Unfortunately, Better Business Bureau, or BBB, often hears that consumers find post-holiday product refund and exchange requests to be problematic, with frequent misunderstandings about return policies. Following the holiday season, it’s especially important for all business owners to make sure their customers know how best to take a purchase back without a hassle.
To make this post-holiday return and exchange season as smooth as possible, BBB offers the following tips:
• Be specific with customers. Make sure consumers understand the conditions under which you will make refunds or exchanges. If a time limit exists, state this clearly and in writing. If you offer exchanges or credits, but not refunds, make sure customers understand the difference. “Absolutely no refunds” is more straightforward than “sales are final” and “as is.” Posting notices about your refund and exchange policies in a high-traffic area like a checkout line means more customers are likely to read it.
• Train your staff to communicate clearly. Be sure your employees know your business’ return, refund and exchange policies. An employee who isn’t familiar with your company’s policy could give a customer the wrong information, which may lead to a problem if the customer is not satisfied.
• Watch for return fraud. According to the National Retail Federation, businesses will lose an estimated $3.68 billion to return fraud this holiday season, up from $2.74 billion last year. Refund fraud occurs when someone steals merchandise from a store and returns it later asking for cash back. The best way to avoid this scam is to have an accurate inventory of all sales. Let customers know that proof of purchase is required for all returns. If a customer cannot do this, you can either deny them a refund or have them fill out a form with their name, address, phone number and purchase details and have them show proof of identity to reduce the risk of enabling fraudulent behavior.
For more business tips, visit bbb.org or check BBB out on Facebook and Twitter.
About BBB:
BBB’s mission is to be the leader in advancing marketplace trust. BBB accomplishes this mission by creating a community of trustworthy businesses, setting standards for marketplace trust, encouraging and supporting best practices, celebrating marketplace role models and denouncing substandard marketplace behavior.
Businesses that earn BBB accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. BBB is the preeminent resource to turn to for objective, unbiased information on businesses and charities.
Contact BBB serving Central, Coastal and Southwest Texas at 512-445-4748.
