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Introduction
The ecommerce sector is the fastest-growing sector in the recent decade. With limitless exposure, brands have to strive even harder now to garner the customer’s attention to their brand and product. If you check the general customer metrics, the availability of a seamless exchange process is shown to have a positive impact on customer retention. That is why every ecommerce business needs an impeccable ecommerce exchange policy.
This ecommerce exchange policy document will allow you to create a business process for returns and/or exchanges and bring transparency to the purchase process. A lenient exchange policy has been shown to increase the number of purchases. It will also increase your average cart value as customers are willing to make more purchases.
If you want to reap these benefits, read the blog below to understand what makes an ecommerce exchange policy good. Once you understand that, you will be able to curate an ecommerce exchange policy for your website.
What is an E-commerce Exchange Policy?
The E-commerce Exchange policy is the document that guides and dictates the exchange process. The document is formulated to build a seamless process to facilitate the exchange process.
An exchange policy ensures the customer that the brand will work until the customer is satisfied with the product. Along with this, the policy document will standardize and automate the ecommerce exchange process.
The ecommerce exchange policy should be written and published before you accept any purchases. Make sure that you display the policy link at the time of checkout and on the website.
3 Things That Should Be Included In An E-commerce Exchange Policy
Exchange policies are usually a part of the return policy document. It is advisable to have a separate policy. Regardless of how you represent your exchange program, here are some key elements you need to include in your exchange policy.
1) Exchange Window Time Frame
The policy should clearly define a time frame within which the customers can make the exchange. This time frame can be separated from the return window to encourage exchanges. Typically, it is advised you keep the exchange window between 7 to 30 days. You can change this time frame according to the product category and its shelf life.
2) Mode of Exchange
Depending on the customer preferences and supply chain setup, you can customize the exchange process. This can include introducing in-store or curbside exchanges or implementing a doorstep quality assessment. These conditions have to be outlined in the ecommerce exchange policy for a better customer experience.
3) Acceptable Product Condition For Exchange
It won’t be feasible for a business to accept every exchange request. This opens them up to returns fraud and can lead to an increase in losses. Therefore, it becomes imperative to outline the conditions for an eligible exchange request in the policy. This should include whether you want unused, unopened, or not damaged. The conditions can differ for different Stock Keeping Units (SKUs), as every return product may have to undergo separate processes.
4 Tips To Improve Your E-commerce Exchange Program
Here are a few tips that will allow you to devise a user-friendly exchange experience.
1) Clear and Concise Exchange Rules
While writing the exchange policy, the language and clarity of the policy document are crucial. Readers from all backgrounds should be able to read and comprehend the rules defined in the exchange policy. This clarity avoids confusion on the side of the customers, as well as guides the customer support team on apt action without any confusion.
2) Incentivize Exchanges Over Returns
A return will essentially mean that you have lost the sale. If you incentivize customers to exchange the product as a resolution, you will minimize the losses and retain the sale as well as the customer. As a result, you will be able to provide a better product experience along with a seamless customer experience.
3) Analyse Customer Exchange Data
Ask the reason for the exchange while processing an exchange request. This data set can be extremely useful in predicting customer behavior patterns. It will also allow you to get more insights into the customer experience with your product/s. For example, if you are getting a lot of exchange requests due to sizing issues, including an accurate size chart will be beneficial.
4) Implement Exchange Automation
Manually handling the exchange process can be cumbersome often leading to errors. Returns management platforms allow you to implement an automatic exchange flow. You can set up conditions and parameters for the automatic approval of exchange requests based on your exchange policy.
Why Should You Promote E-commerce Exchanges?
Good companies provide an excellent return experience. Excellent companies convert return requests into lead generation sources. The returns and exchange process has been shown to have an impact on the customer retention rate.
For an ecommerce business, exchanges have less financial impact than a return. This is because you retain the purchase during the exchange process. Consequently, exchange requests due to wrong size, manufacturing defect, etc., do not mean a complete loss for the ecommerce business.
Exchanges also allow you to retain the customer's trust. This promotes a better brand image to drive repeat purchases.
3 Ideal Exchange Policy Examples for E-commerce
There’s no better way to learn and understand something than studying the success stories in the field. Here are three examples of ecommerce exchange policies you can study and derive from.
1) Myntra
The apparel sector has the highest return and exchange rate. Myntra, being one of the most popular ecommerce fashion platforms in the Indian Market, has figured out the exchange flow pretty well. The Myntra exchange platform is the perfect example of how you can define the rules for the customers within the policy.
The policy documents use infographic icons to highlight the conditions. It has a separate exchange program to reduce the return rate and promote exchanges. The exchange cycle works pretty quickly, and the seamless automation implemented in the backend allows for a much faster exchange.
2) Decathlon
Decathlon is one of the largest sports accessories and omnichannel brands in the Indian ecommerce sector. Therefore, its exchange and return policy is a great example of omnichannel brands. The exchange policy is a great example of how you can define varying rules for different product categories.
The exchange policy separates the exchange rules based on the nature of SKUs. This allows for a more enriched exchange experience and minimizes the losses for the company. Along with this, it defines separate return rules for different delivery modes. This allows it to avoid overlap of inventory for various delivery modes.
3) Croma
Croma is a chain store for electronic items and gadgets that has stores across the country. Exchange policy for high-value items can be a tough nut to crack. However, you can take a look at the exchange policy of Croma to understand how you can ideally navigate this terrain. You need to find the right balance between strict quality-checking guidelines and a seamless customer experience.
As Croma has a huge network of stores across the country, it does encourage in-store exchanges to make quality checks easier. Along with this, it has very detailed policy guidelines regarding the eligibility of the product for a return. This combination allows the company to provide a flawless exchange process in a competitive sector like electronics.
Conclusion
Striking the right balance in the ecommerce exchange process is imperative. The process has to be designed to provide the maximum convenience possible to the customers. At the same time, you have to be careful while accepting exchange requests. You have to safeguard your company from any returns/ exchange fraud. Hopefully, the above blog will help you formulate an exchange policy that empowers a better customer experience while safeguarding your business interests.
FAQs
1) Should there be a separate exchange policy?
If you want to encourage exchanges, it is better to have a separate ecommerce exchange policy. This will not only educate customers about the availability of exchange but also enable better exchange workflow. You can add mentions of this exchange policy in the return policy document as well.
2) What is the common exchange rate across ecommerce categories?
The ecommerce exchange process is highly used in sectors like apparel and electronics. This is because the returns in these sectors are more likely to be product-related. As a result, these sectors have one of the highest exchange rates in the ecommerce sphere.