Everything You Need to Know About Refund and Return Policy Generator

1. What is a Refund & Return Policy Generator?

A Refund & Return Policy dictates your business's terms on refunds and returns. This policy caters to eCommerce stores or brands with an online shop and covers all industry types. Policy generators work for shops that have websites or operate through apps.

Customers don't like to consume and deliberate over complex data when they visit your web store to browse through your products. So a good return & refund policy contains concise and easily navigable directions written in a way that is easy to understand. By making the policy easy to find, you have a better chance of converting more first-time shoppers.

Returns Policy generators are online templates that allow you to enter your company details and generate a downloadable customized return & refund policy for your eCommerce store. 

2. What are the basic components of a Refund & Return Policy Generator?

Listed below are the details every basic refund & return Policy Generator should cover. As with any agreement, the policy should cover the essentials - the whens, whats, hows and wheres relating to refunds and returns. 

2.1) Return Policy

Return policies vary from store to store. These are critical to highlight when you generate your return policy. Depending on your operations, you have to option to pick and choose from various permutations and combinations of refunds, store credit or exchanges.

Your store can declare that it only issues refunds, only offers store credit or only accepts exchanges. You could also work in combinations by offering refunds and store credit, refunds and exchanges, or store credit and exchanges. You could also simplify the process and offer all three modes, i.e. refunds, store credits and exchanges.

2.2) Time Period

The most important factor you need to decide when you start generating your refund & return policy is the number of days your customers have to submit a return request. Every country has its laws relating to the acceptable time period for returns.

Businesses that are, for example, based in the European Union have to select a minimum of two weeks. Ensure that you are in line with the legal system when deciding your time frame for returns.

2.3) Conditions to be Met

To safeguard your business, you should have terms laid down for a product to be returnable by a customer.

Some stores, especially those dealing in fashion and accessories, detail the condition of products that are eligible for return, such as - the product should not have been used or laundered or sustained damage and/or stains that were not present during purchase.

Other businesses stick to the bare necessities, such as the requirement for products to be returned with the original package and with proof of purchase.

2.4) Restocking 

When customers return non-defective items, your business suffers costs associated with order processing. So long as the returned product doesn't suffer any major defects, most countries allow restocking fees to be charged as long as they are conspicuously disclosed on the company's returns policy.

You also have the liberty to decide if restocking fees apply to all your products or only those of a specific value. Restocking fees can also be a set amount or a percentage of the product's price. Some businesses charge an average of between 15%-20% for restocking fees.

2.5) Shipping Cost

The cost of shipping is an exceedingly crucial factor that can make or break a customer's decision to purchase from your store. While the cost of return shipping is high, you could look at ways to offset the cost in your pricing or some smart partnering with a logistics provider. You do have the option of asking the customer to bear the expenses for return shipping, or you can cough up a postage refund.

In some countries, customers are legally entitled to recover any reasonable postage. In others, retailers don't have to pay for return shipping unless the customer received a faulty product or merchandise they did not order.

In an ideal situation, you would bear the expenses for return shipping to provide a good returns experience for your customer by including a prepaid return shipping label in the package.

2.6) Return Processing

Just as you expect your customers to respect the time period valid for returns, you will need to set down a time period to fulfil your end of return processing, such as exchanges, reimbursement or store credit. Also, take this space to inform customers how you will notify them once their order has been processed.

You have several automated and manual modes when sending notifications to your customers in these powerful eCommerce times. You can either go old school and opt for emails, messages or calls or have your app or website alert them with push notifications.

2.7) Exceptions

You could also take this opportunity to highlight any products exempt from the return policy. These exceptions could include discounted items or goods not permissible for exchange under state and federal laws. Feel free to add additional rules or guidelines to help your business function better.

2.8) Contact Details

Right alongside all the sacred philosophical deliberations that we as humans ponder are the questions customers have regarding customer care. What are the customer service phone number and email address?

How can customers contact businesses for questions regarding their refund policy? Where should the customer send the product? Ensure you have all the vital contact information penned down in your return policy. List out any numbers, addresses, helplines, or even the presence of chatbots on your website or your well-stocked FAQ section.

3. How does a Refund & Return Policy Generator work?

Your company size doesn't matter, which industry you are a part of, what platforms your business is on or where your business is located. A return & refund policy generator takes the information you have fed it and creates a crisp and detailed policy for your store to enforce. 

Policy generators are designed to address the needs of businesses and align with state and country laws. Available in a wide range of formats, policies created by these policy generators help you lay down your store's law to your customers.

Beginning with a series of questions about your eCommerce business, such as name, address and contact information, the return policy generator gets into more detailed particulars, such as the terms and conditions of your store's policy on returns. These terms include any time frames, refund modes, return shipping payment, eligibility, product condition, and other details you see fit to share.

Once you input all the requisite information, the generator will shoot out a spanking new customized return policy for your business.

4. What are the benefits of using a Free Refund & Return Policy Generator for your eCommerce business?

Using a free refund & return policy generator is excellent for your business in multiple ways. One of the main reasons to use a free policy generator is to save time and money. Since the generator creates the policy for your store, you won't have to spend time on the next or money on a lawyer to draw it up.

4.1) Customer Trust

For customer retention and trust-building, policy generators will help you deliver the information your customer is looking for when they shop at your store. Customers appreciate it when businesses are upfront about their policies.

4.2) Control Terms of Returns

Policy generators allow you to lay down the terms of your returns for the customer. By doing this, you align your customer's expectations with your own and speed up returns while eliminating misunderstandings.

4.3) Higher Sales Conversion

A well-structured refund & return policy shows a customer that you are confident in the quality of your products and are willing to offer a refund if their purchase has been unsatisfactory. This bold statement works as a great marketing tool, and the customers view it as a guarantee of excellent service.

4.4) Problem Solve

Free refund & return policy generators help you churn out the requisite checklist and returns process by pre-empting any possible issue with the anticipated return and helping you address it.

4.5) Avoid Fraudulent Returns

By setting down the rules of the return game for your customers, you can avoid dealing with return frauds. By putting down your views on returns and refunds in your policy, you can hold your ground when a case of issue-ridden returns crops up by sticking to the store's rules.

For example, you could suggest that you track returns or frequent returns. In this manner, you could dissuade any problematic customers who may abuse the store's refund policy.

5. Which are the top Free Refund & Return Policy Generators for eCommerce?

While there are several free refund & return policy generators available on the internet, listed below are a few well-known generator tools available for use.

5.1) Termsfeed Refund & Return Policy Generator

Although technically free, the policy generator by Termsfeed covers all the principal terms & conditions with the option of a one-time fee for anything over and above the basics. Downloadable in DOCX, PDF and HTML format, the Termsfeed policy generator covers all major points.

For example, the free requirement under product conditions states that it must be in original packaging to be eligible for return. But, you will have to pay to choose specific details, such as the requirement for a product that isn't damaged or used and needs to be accompanied by proof of purchase.

5.2) Termly Refund & Return Policy Generator

Termly brings a more detail-oriented approach to the policy table. Termly's free refund & return policy generator extensively covers the various operations of the returns process. While this free generator covers all the necessary points, the policy generated by Termly might require some tweaking for certain speciality businesses.

A note-worthy feature is that Termly allows you to print your policy's version date, which helps you and your customer keep track of version history, modifications, and amendments. With the ability to create a return policy for any platform, Termly's thorough questionnaire leaves nothing up for assumption. 

5.3) WebsitePolicies Refund & Return Policy Generator

The free policy generator by WebsitePolicies is woefully basic and aligned to serving only businesses dealing with the sale of digital products. Even the basics of return, such as conditions for eligibility, comes under the premium version of WebsitePolicies refund & return policy generator. The free version lacks access to comprehensive clauses.

It is watermarked with their name and is not meant for commercial use. If you own a small business dealing with digital products or memberships, this could be the right fit for you. However, if you deal with the physical shipping of tangible products, you will have to pay for their premium services.

5.4) Shopify Return Policy Generator

Shopify's return policy generator is free and basic. It plugs your company's information into a standard version and sends you the link for your new policy via email. While offering multiple services aligned with return policies, they all follow the same standards of Shopify's return policy. Low on customizability but free, Shopify's policy generator helps you churn out a no-frills return policy for your store in minutes.

5.5) Volusion Returns Policy Generator

Lacking support for non-US-based companies, Volusion's returns policy generator is a free yet basic tool. The only options for customization are the addition of your company details to their standard return policy.

Since the policy is not customizable, your business may not be able to comply with some of the terms and conditions that they outline, and you may need to spend some amount of time modifying it to suit your store's needs. However, their standard policy is free.

5.6) Shift4Shop Return Policy Generator

Simple but non-customizable, the Shift4Shop return policy generator only allows the addition of your company details to its rudimentary return policy. Their eCommerce return policy can be copy-pasted to a word processor to edit before publishing in digital or physical format. Although it only takes seconds to generate, the work you will have to put in to align your business's rules for returns could take more time than you can spare. 

6. How to choose the best Free Refund & Return Policy Generator for your eCommerce business

Gone are the days of staid and drab shops that cater to a specific need. Businesses these days are highly varied and supply services and goods from fertilizer and soil to collectibles and art.

One vanilla refund and return policy format won't do you any good. Best practices are formed from observing how well-performing stores in your industry or area manage their operations.

Although free return policy generators are a top priority, free does not always mean great. Choosing some free tools could mean more person-hours spent after generation, editing everything that does not apply to your store. It is much better to go for a free generator that creates a return policy for your store based on your answers from a questionnaire.

Customization could mean as little as plugging in your shop's name to declaring your terms and conditions according to the type of merchandise you transact. When looking for an excellent free policy generator, keep customization as your top goal, free as your second priority, and their request for your email or social handle sign-ins as your last.

7. ClickPost - The Best Shipping Software Solution to Automate Product Returns

While Return policy generators help you draw up the terms and conditions for your store, ClickPost can assist you in enforcing them through shopper-executed return requests. When you integrate your returns portal with ClickPost, customers can initiate a return request by entering purchase data and any additional details that are required to complete the application.

All fields and requirements in the returns form are designed to address the specifications dictated by your return policy. Any return request that does not abide by all the rules will be deemed ineligible for returns. While reducing the operations cost of your returns, you can ensure a hassle-free returns experience for the customer.

8. FAQ

1) Is the refund & return policy generator free?

While these policy generators are not necessarily free, there are many options for free generators on the internet.

2) Can I download the document created by the free refund & return policy generator?

Some free policy generators may allow downloads in pdf, doc or HTML format, while others may require you to copy-paste the content to a word processor for publishing.

3) How do the free refund & return policy generators work?

Policies generated by refund & return generators help you implement your store's rules for refunds & returns. Many generators offer a standard policy, customized with your company name and contact information. In contrast, others generate a customized return & refund policy for you based on the data entered in the questionnaire.