Returning goods bought from an online shop – a guide for retailers

In the era of digitalisation and dynamic development of e-commerce, a key issue (for both customers and sellers) is the possibility to return goods, purchased from an online shop. For the consumer, this is one of the basic rights that gives him or her a sense of security, when shopping online. For the seller, on the other hand, it is an aspect that needs to be managed properly – on the one hand, it has to meet the expectations of the customer and, on the other hand, not lead to unfavourable financial consequences for the business.

However, entrepreneurs selling goods via online shops often struggle with problems related to the handling of returns – both legally and logistically. For this reason, we have put together a comprehensive seller’s guide that will introduce you to the issue of returns in an online shop. In the article you will learn:

• What consumer rights govern the return of goods?
• Which goods cannot be returned?
• What obligations and rights does the seller have with regard to returns?
• Why do customers return purchased goods?
• How to effectively reduce the number of returns in an online shop?
• How to effectively manage the returns process in an online shop?

Returns and consumer rights

The customer’s rights to return goods are strictly regulated by law. The primary reference point in this respect is the Consumer Rights Act. This is the key document that defines the basic rights of every buyer. In the context of returns, the most important provision is the one that allows customers to withdraw from a contract without giving a reason, within 14 days of receiving the goods. This right provides consumers with adequate time to get acquainted with the product and decide whether to return the goods (including goods purchased online).

However, in order for a customer to exercise the right of return, certain conditions must be met. Firstly, the goods must be returned intact, meaning that they should bear no signs of use. Furthermore, the consumer should inform the seller that he or she intends to withdraw from the contract – this is usually done by filling in the appropriate return form.

Understanding and respecting the customer’s right to return goods is not only a legal requirement, but also a key element in building trust among consumers. For this reason, every company should strive to make its returns policy transparent and fully understandable to customers.

What goods cannot be returned?

It is worth bearing in mind that not all goods can be returned – even when the customer would like to exercise the right to withdraw from the contract concluded with the company. The law in force takes into account certain categories of products that, due to their characteristics or specific use, cannot be returned. The most important of these are:

• goods that are perishable or have a short shelf life – this applies to food, for example,
• goods, delivered on an individual order – if the product is made to the customer’s special order, for example, is personalised, then it is not returnable (for example, bespoke furniture or jewellery with engraving),
• digital products supplied on a tangible medium after the packaging has been opened – this applies for example to computer games, films on DVD or software supplied on a CD – if the customer has opened the original packaging, he cannot return such products,
• goods which, by their nature, are inseparably mixed with other products after delivery – for example, paints which have been mixed according to the customer’s specific instructions,
• services where performance has begun with the consumer’s prior express consent before the end of the withdrawal period – for example, hotel reservations, taxi orders,
• sealed goods which cannot be returned for health or hygiene reasons if the packaging has been opened after delivery – for example, cosmetics or personal care products.

Keep in mind that under current law, every seller should clearly and accurately inform their customers which goods are excluded from the right of return.

Obligations and rights of the seller

The seller, like the consumer, has certain rights, related to the return of goods. He also has clearly defined obligations. These include:

• Providing information – the seller is obliged to provide customers with clear information, concerning the return of goods. This should clearly set out the consumer’s rights regarding the return (including the withdrawal period, the return procedure and the conditions for return – e.g. keeping the original packaging, intact condition of the goods, etc.). Consumers should be provided with information in writing or in another durable form, enabling them to keep a copy for their own use. Failure to provide information may lead to an extension of the right of return to 12 months. Furthermore, the retailer should also actively support the customer with questions or concerns, regarding returns, e.g. through access to customer service.
• Selling goods in conformity with the contract – the seller is obliged to provide the customer with goods that are in conformity with the contract and that meet the specified quality standards and characteristics as set out in the sales contract or those prescribed by law. If the goods have defects or are not in conformity with the contract, the seller is liable and is obliged to take action to remedy the situation.
• Acceptance of the return of goods – if the consumer decides to return the goods, the seller is obliged to accept the returned product, provided that it meets certain conditions for return, such as the original packaging of the goods. The seller must reimburse the consumer the amount due for the purchased goods, including delivery costs, if any.
• Returns records – sellers are also obliged to keep records of returns of goods. These records may include information such as the date and number of the return, the name of the customer, a description of the goods returned, the amount of the return, the method of return, etc. These records help to monitor and manage the return of goods and condition the relevant financial accounts.

The seller’s rights, on the other hand, include:

• Protection against fraud – if fraud is suspected, the vendor can take appropriate action, such as requesting proof of purchase, restricting returns in cases justified by the suspicion of fraud, etc.
• Complaints against suppliers – if the vendor receives defective or damaged goods from its suppliers, it has the right to complain and assert its rights against them. The vendor can claim from its suppliers to replace the goods, repair, reduce the price or reimburse the costs associated with the defective products.
• Protection of interests – in the case of conflicts with the customer, the vendor can assert its rights within the framework of the applicable law and the sales contract.

It is important that the seller acts in accordance with the applicable consumer laws, thus ensuring quality customer service, honesty and professionalism in the sales process.

The most common reasons for returning goods

Returns are an integral part of commerce, whether the goods were bought in a stationary shop or online. There are many reasons why customers choose to return a purchased product. Below are the most common reasons for returning goods purchased online:

• The product does not meet expectations – this is the most common reason for returns. It is often the case that the product looks different in the pictures online and different in person.
• Defective product – if the product purchased is damaged, incomplete, does not work properly or has other defects, the customer often chooses to return it (and then has full right of withdrawal).
• Change of decision – customers sometimes simply change their mind.
• Wrong size or fit – a common problem, especially in the clothing and footwear industry, is the wrong size – the product may not fit, be too big, too small, too loose or too tight.
• Double or wrong order – sometimes customers may order twice or order the wrong product by mistake. In this case, they usually want to return the goods and order the product they actually wanted.
• A gift they didn’t like – if a customer has received a gift they don’t like or already have, they may also want to return it.

Understanding the above reasons is crucial for retailers. This will help optimise the returns process and improve the quality of the products sold and services provided.

How to reduce returns in an online shop?

Reducing the number of returns in an online shop is key to both increasing revenue and building consumer loyalty and trust to the brand. Below are strategies that can help you reduce returns.

Exchange instead of returning goods

Exchanging goods instead of refunding is one of the most effective strategies for reducing returns – especially for online shops. Using this method can bring a number of benefits to both sides of the transaction – for both customers and retailers.

For the consumer, exchanging goods is a flexible solution that guarantees satisfaction with the purchase, even if the original product did not meet their expectations. The exchange can involve a different size, colour, model or even a different product category.

This strategy has many advantages from the retailers’ point of view as well. Firstly, this solution helps to maintain sales levels. Instead of returning the money, the seller stops the transaction by offering a different value in return. Moreover, it is a good way to improve customer relations and build loyalty – the company thus shows that it is trying to meet the customer’s expectations.

However, it is worth remembering that the option to exchange goods should be clearly communicated to customers – both in the returns policy and during the purchase process. Customers should have clear information about their options and how they can complete an exchange – this will increase the likelihood of them exercising this option.

Accurate product descriptions

Accurate and transparent product descriptions are one of the most important factors in influencing a purchase decision, especially in the world of e-commerce. In a situation where the customer does not have the opportunity to experience the product directly, a quality description becomes a key element of communication and trust-building.

A mismatch between the product and the customer’s expectations is one of the main reasons for returns. This can result precisely from an inaccurate description of the goods. In addition to basic information such as name and price, good product descriptions should also include detailed technical information such as dimensions, materials, operating and maintenance instructions, warranty information, as well as unique features and benefits associated with the use of the product. Product comparisons, sorting and filtering functions, and a frequently asked questions section can also help you make the right choice.

Remember that product descriptions are often a customer’s first contact with a product in an online shop. For this reason, a properly prepared product description not only helps to reduce returns, but also builds customer trust in the brand, increases conversions and influences consumer satisfaction.

Quality product images

In the world of online shopping, quality product images are also extremely important. They are the closest equivalent to the physical experience, i.e. being able to see and touch the product in a stationary shop. The correct representation of the product in the photos can significantly reduce the number of returns – because the customer can see exactly what to expect from the product. What should the product images be like?

First and foremost, the photos should present the product in an accurate and credible way. The true colour, shape, size and details of the product should be visible. Incorrect colours or proportions can mislead the customer and lead to dissatisfaction with the purchase and therefore more returns.

Also consider that customers want to see the product from all sides – so they can accurately assess whether it meets their expectations. So ensure that your product photos are taken from a variety of angles, including top, bottom, side views and even the inner workings of the product (if possible).

It is also important to show the product in use, for example clothes on a model or furniture in an interior design. This allows customers to see what the product looks like and can imagine how it will meet their expectations in practice.

Keep in mind that photos should be sharp, well-lit and have a high resolution. This will allow customers to zoom in and examine the details closely. Furthermore, all photos should be consistent with each other in terms of style and lighting – so that the customer can compare products with each other.

The quality of merchandise photos has a direct impact on brand image and customer confidence. Investing in professional product photos will not only reduce returns, but also increase conversions and customer satisfaction.

Feedback and reviews

Opinions and reviews are one of the most important tools to help consumers make a purchasing decision. With online shopping becoming more and more popular, customers are increasingly missing the opportunity to touch a product before buying. In this context, feedback and reviews from other customers can be a valuable source of information to help assess whether a product will actually meet their expectations.

A customer who has read reviews of a product already knows its strengths and weaknesses. As a result, their expectations are more in line with reality, reducing the risk of disappointment and returns. Furthermore, in reviews, customers often share information that is not included in the product description. This can include details, such as size, colour, features, quality and even information, related to delivery and customer service. These can help other customers to make a better choice, which can consequently reduce returns. What’s more, reviews and feedback increase trust in the product and brand.

However, managing feedback and reviews requires proactive work. Customers should be encouraged to leave reviews and then moderated appropriately and negative feedback should be responded to in a thoughtful manner.

Remember that the key aspects are transparency and authenticity. Under no circumstances should you delete negative reviews (unless they are offensive or in breach of policy) or add fake reviews. Such actions can seriously damage a company’s reputation.

Speeding up order fulfilment

Speeding up order fulfilment can have a significant impact on reducing returns in an online shop. After all, the time it takes for an order to be delivered is an important factor that can determine a customer’s satisfaction and their decision whether or not to return an item. Optimised delivery times affect, among other things:

• Customer satisfaction – customers value fast order processing and delivery. Delivering the product faster than expected can contribute to a positive customer experience, which in turn reduces the likelihood of a return.
• Eliminating uncertainty – long waiting times for an order can lead to uncertainty and frustration, which in turn can lead to returns. Speeding up the order process helps to minimise these negative emotions.
• Competitiveness – in this day and age, with many e-commerce giants offering fast and even one-day delivery, fast order fulfilment is a standard that customers expect.

To speed up order fulfilment, you can invest in technology to automate processes, optimise warehouse management, improve communication with suppliers and couriers, and put in place effective order tracking and monitoring systems.

Remember, however, that fast order fulfilment should not come at the expense of the quality of the goods. Always ensure that the product is properly prepared for shipment and meets all customer expectations before it leaves the warehouse.

Proper packaging

Proper product packaging is a key element of the sales process in an online shop. It is often underestimated, however, it has a significant impact on the number of returns.

Remember that the primary purpose of packaging is to protect the product during transport. Any kind of damage, such as scratches, cracks or crushing, can lead to returns. To avoid this, invest in suitable protective materials such as bubble wrap, foam, padding or cardboard.

The first impression is also of great importance. Elegant and professional packaging can increase the perceptual value of a product and enhance a positive purchasing experience. Even if the product does not quite meet the customer’s expectations, high-quality packaging can induce the customer to keep the product and thus reduce returns.

Don’t forget that packaging is also a great place to communicate important information, such as instructions, maintenance recommendations or warranty information, about the product. Providing all the necessary information can help customers use the product correctly and understand its value, which consequently reduces the risk of returns.

More and more consumers are also paying attention to the environmental aspect. Appropriate packaging made of environmentally friendly materials can be an additional asset, influencing brand perception and the decision to return a product.

Appropriate product packaging is not only a question of aesthetics and protection. It is an important element of communication with the customer and of building trust and loyalty, which consequently also affects the number of returns.

After-sales customer service

Post-sales customer service is also extremely important. It has a huge impact on customer satisfaction and, consequently, on the number of returns. A high level of post-purchase customer service can significantly increase the chances of a customer deciding to keep a product, even if they have encountered some problems along the way. Why does this happen?

When a customer has a problem or question, regarding a product, a quick and helpful response can solve the problem and dissuade them from returning it. After-sales customer service should include various communication channels, such as email, phone, website chat or social media.

In addition, customers often return a product because they cannot use it properly or do not understand all its functions. In such cases, technical support and advice can help the customer learn more about the product and use it to its full potential.

However, after-sales support requires commitment and investment – both in people and technology. Among other things, it will be necessary to introduce CRM systems, automate some processes, train staff and survey customer satisfaction. Remember that a satisfied customer is not only a customer who does not return products, but also a customer who returns and recommends your shop to other consumers.

Gift cards and loyalty programmes

Gift cards and loyalty programmes are effective tools that can help online shops to reduce returns. These strategies are based on building a relationship with the customer and increasing customer engagement, which can lead to a reduced likelihood of returns.

Gift cards can be an effective solution especially when a customer is not fully satisfied with the product they have purchased. Instead of going through the return process, the customer can then receive a gift card for future purchases. This not only reduces the number of returns, but also increases the chances that the customer will purchase from the shop again.

Loyalty programmes that reward customers for making purchases can also influence decisions when it comes to returns. If customers earn points for products they purchase, which they can later redeem for discounts, gifts or special offers, they may be less inclined to return – so they do not lose the points they have accumulated. In addition, loyalty programmes help build stronger relationships with customers, leading to greater satisfaction and fewer returns.

Both tools – gift cards and loyalty programmes – also have additional benefits, such as increasing customer loyalty, increasing repeat purchases and a higher average online shopping basket value. However, it is important that these schemes are easy for customers to understand and are in line with the overall brand strategy and values.

Longer return time

A longer time to return an item may seem at odds with the aim of reducing returns, but it can actually have a positive effect. Why?

Firstly, when customers know they have more time to make a return decision, they feel less pressure and stress. This allows them to make better informed decisions – they get more time to get to know the product, which often leads to a decision to keep it.

What’s more, a longer return period can also help build customer trust in the brand. This is because consumers see that the company has full confidence in the quality of its products, which can in turn discourage customers from returning.

In addition, many online shops offer a standard 14-day return period. A longer offer can therefore be more attractive to customers and provide an additional argument to purchase.

Customer verification

Although most customers exercise their right to return fairly and responsibly, there are consumers who abuse this option. Here, we may have to deal with incessant buying and returning of goods or false claims of product damage, which can have a significant impact on company profits. This is why customer verification can be an important element in a strategy to reduce returns. Include elements in your verification such as:

• Monitoring purchasing behaviour – using the right analytical tools and CRM systems, companies can monitor and analyse customers’ purchasing patterns. If a customer regularly returns a high volume of goods, this may be a signal that it is worth taking a closer look at their business.
• Regulations, concerning returns – companies can introduce a returns policy that allows them to refuse to handle returns if a customer abuses this right. However, it is worth ensuring that such regulations comply with applicable law and are clearly communicated to customers.
• Verification of claims – in the case of claims where products have been damaged, companies may require customers to provide photographs of the damage before agreeing to a returns process. While such steps may require additional time and resources, they can help prevent false claims.
• Risk assessment system – some companies implement sophisticated risk assessment systems that automatically analyse transactions and flag those that may be suspicious. Such systems can take into account various factors such as a customer’s purchase history, the number and frequency of returns, location and more.

Remember that for most customers, the right to return is an important part of the shopping experience, and limiting it can have a negative impact on their perception of the brand. For this reason, any strategy aimed at validating customers should be well thought out and properly planned.

How to effectively manage the returns process?

Effective management of the returns process is extremely important for online shops. This will help to ensure a positive shopping experience for customers. Here are some key elements to consider when managing returns:

• A clear and accessible returns policy – this should include information on deadlines, terms and conditions, return costs and the procedures a customer must take to return goods. The policy should be easily accessible on the shop’s website and clearly communicated to customers.
• Prompt communication – try to respond to queries, regarding returns, as quickly as possible. Prompt and professional communication with customers can reduce frustration and uncertainty. Make sure you have designated resources and procedures for handling returns so you can respond quickly to requests.
• Checking and evaluating returns – reported returns should be meticulously checked so that the condition of the returned product can be assessed and appropriate measures applied. Depending on the type of goods, this may include checking for completeness or assessing the condition of the product. The reasons for the return should also be monitored – so that potential problems with products, logistics or customer service can be identified.
• Prompt payment refunds – if a customer returns an item and requests a refund, try to process the payment refund as soon as possible. A delay in returning payment can affect customer satisfaction and perception of the shop.
• Data analysis and reporting – regularly analyse data, including reasons for returns, frequency, costs and other indicators. This information can provide valuable insights into areas that need improvement and preventative action.

Effective management of the returns process is key to building customer trust and maintaining a good shop reputation. A simple, transparent and quick process will minimise the negative impact of returns on the business and ensure a positive customer shopping experience.