It surprises me that so many Silhouette and Cricut small business owners don’t have refund policies for the products they sell. It’s a reality: At some point in your business, you are going to have a customer who is unhappy with the product or service and will request a refund, exchange, or return. Your refund policy should be clearly written, readily available for a buyer to read before purchasing the items, and included with your product either electronically or as a printed copy.
Your Refund Policy Should Answer These Questions
- How long does a customer have to request a refund?
- Do you require that products be unopened, unused, or in original packaging to request a refund?
- Does the item need to be returned to you? If so, who is responsible for shipping costs?
- Will the customer receive a refund or replacement if it is damaged or lost in the mail?
- How will a refund be processed and how long will it take?
- Are custom orders refundable?
- Can a customer exchange a product for a different one?
- What happens in cases of defective products?
- What if the product is delivered late? Will you provide a refund?
- Do you sell any items that are no refundable – no matter what? (Swimsuits, body care items, etc.)
- Are partial refunds available?
- Is the original shipping refundable?
If You Don’t Accept Exchanges or Returns
If you do not offer refunds, exchanges, or returns, that becomes your refund policy – just be sure that it is in writing and available to customers.
A strong refund policy can also help you in the event that a customer initiates a chargeback through their credit card company, a dispute through Paypal, or any other online marketplace. If a customer has not followed your written refund, exchange, and return policies you have a better chance of a judgement in favor of you.
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Thanks for the tips! Great topic! How would you ensure that your customers got your refund policy? On Etsy, I’m assuming it would be included on your shop or each listing. Would you also include a hard copy when you ship your items? What about if selling at a craft fair?
Hello! Etsy has specific places to put your store policies. Some sellers choose to reiterate their policies within their listings, this is a personal decision. Ideally, your policies should be on your receipt or packing list (or a URL to find your policies) and should be in the box. If selling in person (locally or fairs/markets) your policies would be listed on your customer receipt. Hope that helps! Christine
Hi.
(Oh. Wow. I love the font in the comment box!)
How does a broken item return work? Do you always insure your package? How can you prove an item was broken upon receipt and not after if you’re selling fragile merchandise?
I don’t know if it is a good idea for me to even attempt selling online because of the nature of what I sell.
Hi Sarah! Your customers will usually be happiest if you offer a replacement product or refund in the event of breakage. For fragile items, I usually require customers purchase insurance on their packages. Customers should have a timeline on when damage must be reported. What are you considering selling, I might be able to help you with more specific information.
ooh Christine!! I love how you deal so professionally with every single detail. I don’t know how I
would manage my business without you guiding me. I can’t say thank you enough!
Love!!
Thanks Samah! I hope you are doing well! Christine
I am actually getting ready to set up my return and refund policy today. I realized over the weekend that I don’t have one, and now that I am selling hand made jewelry and other crafts, I need one. These questions in your blog will help me identify and create my refund policy.
Thank you for the great blog post! I look forward to reading your other posts.
Happy to help!