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Goods Return is Good Policy

Give your customers the treatment you yourself would like to receive from a retailer while entertaining a complaint or refund request

Shopkeepers often Lament that the retail environment is becoming too competitive and that the customer is spoilt for choice, not only in terms of product offerings but also the outlets he can shop from. Yet the phrase ‘consumer is king’ is understood by them only in a superficial manner, and their desire to satisfy the customer is at best half hearted. The most telling example of this state is the absence of, or ineffectiveness of, a ‘goods return policy’ that favours the buyer instead of the seller. More tellingly, the word ‘return’ does not feature anywhere in the priority list of retailers; instead, the more favoured term is ‘exchange’ and that too on terms of the seller.

When a consumer is not satisfied with the purchase, most of the times the reason could be that the product did not turn out the way it was expected to, or it is defective, or simply that it was a wrong selection. In India, most retailers consider only the first two reasons as rightful for product replacement. However, they never refund the purchase amount if the consumer does not find anything good enough in the store to exchange it with. At most they issue gift coupons or cash certificates which have to be redeemed within a certain time.

Retailers argue that customers will start misusing a liberal goods return policy by turning up for refunds. Little do they realise that a no-returns policy would deter genuine customers from experiencing a friendly experience at their outlet. But retailers who really want their customers to enjoy buying from them and spending more time in their stores are getting bold enough to say that “they are happy to exchange goods once sold, and even give complete refund”.

Return Due to Defect

» In Practice - This is one situation where the product has some kind of a manufacturing defect or usability problem. Retailers rarely take responsibility for defects, and try to get the customer to directly contact the manufacturer with the complaint. And, in case a product is not backed by a manufacturer’s warranty, or when a highly discounted price is offered in lieu of after-sales support, the seller simply refuses to recognise the product he has sold, or the customer.

» Ideal - The retailer must aim at making the customer’s experience as smooth as possible. The proprietor himself, or a designated person, should handle complaint related discussions each time so that decisions can be taken quickly. Remember, the customer is always apprehensive about the treatment he will get when he comes to a store with a complaint, and this can be a make or break transaction from the shopkeeper’s point of view. Do not miss this opportunity, and handle the complaint in the most sensitive manner by placing yourself in his shoes.

For starters, prominently display your service or complaint telephone number in the store. Have a separate challan book printed to record complaints, and to receive goods returned for repair. Commit a date for return of the repaired product. Try to give an estimate of any costs involved in the repair, or commit by when the estimate will be provided. Assure that you will follow up with the manufacturer and keep the customer updated on the status of repair. And better still tie up with the manufacturer to allow you to provide a replacement of an ‘in warranty’ product there and then.

Return Due to Dissatisfaction

» In Practice – In European and North American countries if a customer is not satisfied with the product due to any reason, he can return it within a stipulated period of time. In India dissatisfaction would not qualify usually as a reason for return or even exchange. In fact retailers take it for granted that the customer makes a decision after much thought, and once he pays for it he has to make peace with it.

» Ideal – Retailers must ensure customer satisfaction at any cost if they want to build loyalty. If a customer goes away happy, there are all chances of his recommending the shop to family and friends. Don’t forget, word of mouth is the most credible form of publicity and it doesn’t cost anything! A straightforward policy can lay down the time frame, and certain reasonable conditions for return due to dissatisfaction so that genuinely dissatisfied customers can be satisfied. This particularly includes problems of size. And if a particular size is not available, it’s best to return the customer’s money instead of asking him to accept a cash coupon or certificate.

In Poor Taste

Many shop owners have extremely illogical guidelines for return. Some insist that customers should come to exchange only during the second half of the day, since starting off with a return transaction is not good for business. Also, no exchange on Sundays or other holidays. But the worst practice is of making a customer who wants to return or exchange wait, and giving priority to those who have come to buy. This behaviour is not acceptable in an evolving market. The customer’s choice must be respected, and the courtesy extended at the time of return or exchange should be the same as it was at the time of purchase.