How To Write Return and Refund Policy for a Dropshipping Store

Returns and refunds are what scare virtually every dropshipper. Everyone wants to sell and pocket their profits without having any need to refund. It seems unpleasant to refund, but as a business owner, you can make it smooth and profitable both for your customers with a proper dropshipping return policy — they get the right product or money back.

If you really want to be successful dropshipper and achieve a high customer satisfaction level, then you have to learn how to handle refunds and returns when drop shipping. No matter what your dropshipping returns policy entails, you can still delight your customers when they seek a refund. Strive to provide the best professional service.

So, what’s the best approach to handling AliExpress dropshipping returns?

It might not be very easy to handle dropshipping refund and returns.

Often store owners even don’t know how to write such policies at all!

That’s why we’ve crafted this article.

Ready? Let’s dive in.

1. What is Return and Refund Policy?
2. Importance of a Clear Refund and Cancellation Policy in Dropshipping Stores
3. Things to include in a refund policy as a dropshipper – Real example/template
4. Key Tip: Discuss Returns with Your Supplier
5. Your Return Policy Can Help You Earn Sales
6. How Dropshippers Are Affected By Returns
7. Refunds without Returns – How to make it happen
8. Next step? Create a Refund Policy Page on your Site (See How)

What is Return and Refund Policy?

It’s pertinent that eCommerce websites create a refund policy – but many website owners don’t know where to begin.

Refund policy is a policy that clearly states the terms and scenarios where refunds and returns may be offered by a website and how it happens.

Customers should check this policy before making purchases as it’s a legal agreement between the seller and buyer. Some sites may not issue any refund at all while others can only refund within a defined time frame.

The refund policy should be easy to understand, straightforward and made accessible to site visitors easily.

Importance of a Clear Refund and Cancellation Policy in Dropshipping Stores

A refund and cancellation policy is more like a legal agreement between sellers and buyers stating when, how and cases where refunds are possible. Dropshipping stores should have a very clear policy, so when prospects buy, they understand what they sign up for.

With a clear and implementable refund and return policy, you gain your customer’s trust and can even make more sales. Make it clear enough, so your customers understand the procedure to follow if they desire a refund.

Things to include in a refund policy as a dropshipper – Real example/template

While creating a refund policy, there are things to include so your buyers know they can purchase confidently. As mentioned earlier, refund and return policies should be clear enough and easily accessible. They should discuss:

1. If returns are free
2. If you offer replacements of products
3. Countries eligible for returns and refunds
4. Items that are exempted from your returns policy
5. A period when customers become ineligible for returns
6. How fast your returns happen

Gymshark, an ecommerce brand, has a good returns policy, you can check it.

Also, you can use one of online policy generators like termly.io, which helps you to create the document step by step, or take as example a shop you like. In fact, you get a return policy template and then edit it according to your requirements.

Please use all thee tips to write Refund Policy without mistakes.

BTW: we have a separate post with tips for dropshippers that let you outrank your competitors and make more sales daily. 

Key Tip: Discuss Returns with Your Supplier

Of course, your return policy depends on your decision and return policy of your suppliers. You do not ship the products; you do not get them back, so, make clear the issue with your managers.

• How do they work with returns?
• Who pays for back delivery, they or clients?
• What is the time period after delivery, the return can be made? What document confirms the date of delivery?

In general, the questions are the same; you need to write your own policy. Though you can decide to provide more service for your customers than the suppliers do.

To make sure that the manufacturer’s policy is strong, order some products for a test and ask for return or exchange. Be picky, choosing your suppliers, discuss the return activities in advance, this shows you are a responsible partner.

Your Return Policy Can Help You Earn Sales

If your return and refund processes are straightforward, you can make even more sales. Sounds too good to be true, huh?

Now, could you take a look at it this way? Most shoppers say that a hassle-free return process would make them patronize a business again. This is true because they are confident that even in the worst-case scenario where they have to return the product to the seller, they are covered.

With a proper refund policy, you can still send your customers who returned items successfully, marketing campaigns. Probably, you can sell more to them. It’s more convincing to buy from a brand that is sure to refund you in case of certain issues.

As a dropshipper, you don’t really have to see returns from a negative perspective. You’re trying to build a brand people can trust.

How Dropshippers Are Affected By Returns

It’s common for dropshippers to worry about fulfilling returns, especially at the initial time. Apparently, you don’t handle the packaging and shipping of your products so the idea of making refunds might be quite confusing.

Remember, your customers know just your brand and don’t care about any third party (supplier). So, you have to face reality and refund eligible buyers.

So, for each return you accept, your supplier gets to ship a new product to them, or you refund your buyers in line with your return and refund policy.

Refunds without Returns – How to make it happen

It’s possible to offer refunds to your customers without making them send you back the items they bought.

If you do this, you take away the hassle of deliveries and even offer better customer support.

Here’s what to do; reach out to the customer seeking a refund and offer to give them a brand new product instead of a refund. That’s not all; tell them they can keep the previous product too. If they sit well with the idea, then you do it.

If the profit margin of your product is high, you might even still be on the profit side after sending them the second item.

It’s advisable you ask them to send a picture proof that they got a non-functional or damaged product before you send them a new item.

Next step? Create a Refund Policy Page on your Site (See How)

As the Return Policy page is one of essential static pages, we should add it to the site menu. This is a manual on how to do it for an AliExpress dropshipping store on WooCommerce.

1. Look at the WordPress dashboard on the left, select Pages menu and click Add new
2. Type a name for the page. “Return Policy” or “Return and Refunds Policy” is OK. The title you may double as the URL, like “yoursitename.com/returns”.
3. You may add the text of your policy just after creating the page or later. Save the page

4. Navigate to WordPress Dashboard on the left → Appearance → Menus.
5. From the section on the left, choose the page to add to your menu. Fill the checkbox.
6. Click the Add to Menu Save.