Shop Advice from a SASsy Seller: Refunds and Exchanges

Shop Advice from a SASsy Seller: Refunds and Exchanges - HandmadeSpark.com - image of yellow No Refund sign

Welcome to the first in a series of articles by Etsy veteran Sandie Russo, Captain of the Sellers Assisting Sellers Etsy Team and the SASsy Critique Forum, and proud owner of two Etsy shops: KnitzyBlonde.etsy.com and ZaftigDelights.etsy.com.

Sandie’s column will investigate the most common issues she sees in the course of providing critiques for Etsy shops, and help Handmade Spark readers understand the ins and outs of becoming a star Etsy seller.

Are you prepared to Refund and/or Exchange?

One of the things that makes buying handmade items so much fun is that (generally) the customer service is second to none. Some sellers wrap their packages in pretty paper and enclose thank you notes. Others include coupons with a discount for the next time you shop.

But what happens when a customer needs an exchange or refund? It’s important to ask yourself, “What is my shop’s policy on refunds and exchanges?”

When doing shop critiques, I find that that most refunds and exchange policies fall into one of these 3 categories.

1) The shop has no refund & exchange policy at all (i.e., it’s a totally blank page)
2)  The shop has a vague statement that says something like,  “Contact me if you are unhappy and we will work something out.”
3) The shop says flat out: “No refunds or exchanges!”

For sellers with no refund & exchange policy at all – that dreaded blank page – I only have this to say: “Get on the stick and write one!” As a prospective buyer I need to know these things.  It will instill confidence and encourage your visitors to purchase if they know that you are a professional ready to ensure that their shopping experience is safe and pleasant.

For the 2nd category: the “Contact me if you are unhappy…” solution is too ambiguous to help you sell items.  It’s not really enough to say “We’ll work something out.” Buyers want to know before they purchase from you what they are getting themselves into. They want to know exactly under what circumstances you will exchange the item, and under what circumstances you will provide a refund. It might not be your favorite part of the “job”, but handling refunds and exchanges professionally are a basic cost of doing business, and doing well in business.

The last category is actually the worst of the three options for a very simple reason: a policy like this is enough to turn a buyer away. In the era of online shopping, where Amazon and Zappos provide you return labels in the event stuff doesn’t fit – is it really wise to have a no exceptions no-return policy?  Ouch!

At this point you’re probably wondering what my shop’s refund and exchange policy is. The good news is, your policy can be very simple and straightforward. Here’s the policy I use:

“My goal is that you are completely delighted with your purchase.  However sometimes it is the wrong color/size or something else.  If you need to return your item, please contact me within 3 days of receipt so I can arrange an exchange or refund for you, and give you the address to return your item. ”

PHOTO CREDITS: Image {The land of “NO”} courtesy of Creative Commons licensce via Unlisted Sightings photostream – flickr.com

Shop Advice From a SASsy Seller: Exchanges and Refunds - Headshot of Sandie RussoAbout the author: Sandie Russo is a 3+ year Etsy veteran with 2 shops, KnitzyBlonde.etsy.com and ZaftigDelights.etsy.com, and is the Captain of the Sellers Assisting Sellers Etsy Team and the SASsy Critique Forum.

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  • momster1228

    An excellent and concise guide for this very important part of our Policies sections.  Sandie is so knowledgeable — thanks so much, Sandie!

  • http://twitter.com/Engelfelt Linda Bahr

    Great advice, Sandie!  I look forward to more of your articles!

    Linda (Engelfelt)

  • CDChilds

    Great Artical!  Shop policies are so important to your business. 

  • efrat warshitzky

     That’s a fantastic  article,Sandie!!!Thank you. As always, your tips and knowledge may help us  translate it to many sales and continued success ;)


    Efi

  • http://twitter.com/PrairieWindDsgn Misti Krause

    Great advice Sandy! This is something I did when I first set up my shop and haven’t revisited it. I look forward to more info in this series!

  • Gourddust

    Sandie, Great article- helpful information!  :)

  • http://www.facebook.com/sarahsocute Sarah Terpstra Thrash

    i know this is absolutely a silly question…. where do I put my refund/exchange policy… i’ve been looking all thru my profile and can’t find it :)

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    Thanks everyone!!  Glad you are liking the “Shop Advice” series.  If you have any shop questions you would like addressed in the series, be sure to drop me a note via my Etsy shop and I’ll be happy to include those in an upcoming segment.  

    Have a great weekend!

    Sandie

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    Hi Sarah,

    First click on “Your Account” from the drop down menu (upper right hand corner).  Then on the left hand side, click on “info and appearance”.  Then in the tabs across the top you will see the “Policies” tab, click on that.  Scroll down until you see “refund policy”.  

    Let me know if you have other questions!

    Sandie

  • http://twitter.com/PeanutsCreation Peanuts Creations

    Sandie,

    Great advice! It is so important for people to feel confident in their purrchase.

    You do a great service for shop owners with your critique team and am taking your advice, making changes and looking forward to this series of articles!!

    Karen

  • Aja

    Wonderful advice.  Great to see you Sandie!!  Miss you guys at ETTEAM

    Aja

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    My pleasure, Karen!!

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    Hi Aja!!  Good to see you too.  Hope you are doing good.  :o)

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    Thanks, Lynn!!

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    Thank you Efi!!

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    Thank you!!

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    Thanks, Linda!

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    Thank you, Sheryl.  Your support is so appreciated!

  • Charlene Geller

    Good sound advise:an open attitude, libral with clear parameters. Glad you are giving advise.
    Charlene Geller

  • Rachel

    Another thing I see often is ‘No refunds if your item arrives damaged and you declined to pay extra for insurance’
    What do you think of that? This turns me off and I never order when I see it. I notice in your shop policies that you include insurance and/or delivery confirmation. Even though I am sure you have factored those costs in, it instills confidence in me that you know what you are doing and I would order from you in a heartbeat. 
    This is a greart article, thank you.

  • http://twitter.com/polkadotpossum Cindy Harwood

    Thanks for the advice Sandie!  You are a fount of knowledge – thanks so much for sharing it with us!

  • Rose Lewis

    This is great advice for most items, but what do you recommend for sellers of skin and body care products? It’s not practical from a financial standpoint to say that a return is guaranteed is the buyer simply doesn’t like the fragrance or color of the product. There’s a purity factor involved with items like soap, lotions, or for that matter, food. I wouldn’t want someone to ship back a half used bar of soap or a half eaten cupcake! :) I’ve seen the vague notice on many shop policies, with the addendum that “due to the nature of handmade body care…” or something to call attention to the hygiene issue. Do you think that in this case, it’s the best option? Or should we always try to have a quantifiable policy? Thank you for getting this conversation started – providing a trustyworthy, dependable shopping experience is key.

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    Hi Rose – Really good question, and as it happens, is something that happened to me lately!  I bought a lotion from a Etsy seller recently (it was said in the listing that the fragrance was a light and fresh scent).  When I received the lotion the scent was nasty, exceptionally strong and totally unwearable. The seller just said “oh well”.  And wouldn’t refund, wouldn’t work with me on any solution.  So I went to Pay Pal, and they refunded my money after having me return the lotion to the seller.  -  So, my point is, regardless of what your policy is, Pay Pal will refund unhappy buyers and charge you back.  So I think it is important to have a policy in place that will help an honest buyer who just can’t wear a product.  After all this isn’t like a mall store where they can smell it or try it before buying.  Having samples of fragrances or lotions will go a long way towards not having problems.  But when a problem arrises, even though you can’t accept a return of the item, you need to have a policy that will either replace the item or refund the customer.  It’s just the right thing to do.  

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    It’s so my pleasure, Cindy!

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    Any seller that says that is WRONG.  In the course of an online sales transaction, there is a reasonable assumption that the seller will take every precaution to package and ship the item so it won’t arrive damaged.  If it does arrive damaged, the seller is still responsible (especially so if the buyer used Pay Pal to pay for their item).  It is the seller’s responsibility to factor in insurance or self insure in the event that things like this might happen. It’s part and parcel of being in business and being a professional.  And the bottom line is, regardless of what the seller says about *not* being responsible for shipping and damage, if the buyer (who received a damaged item that the seller won’t replace) files a Pay Pal claim, Pay Pal will refund the buyer and charge back the seller.  So, sellers, take responsibility for shipping, because it is the right thing to do.  (Thanks for your question, Rachel!!)

  • http://www.facebook.com/profile.php?id=1501745058 Sandie Russo

    My pleasure, Charlene!

  • Babs

    What about items that are size specific like baby clothes.  All my item descriptions say to measure the child first and I also give the measurements of the item in the description.  If the purchaser wants to return it because it doesn’t fit or they just don’t like it who is responsible for the shipping costs.  My current policy states that buyer is responsible for shipping both ways on a return.

  • Pattid

    This a a very good and informative article.  I have a no refund policy  but ask buyers to contact me if there is a problem.. However, after reading this I will review my poicies.

    Thank you!

  • http://www.facebook.com/people/Marys-Graphics/100002478761106 Mary’s Graphics

    Very helpful! Thank you

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