Returns and exchange policy: how to write one that protects your margin

A returns policy is a sales tool as much as a legal page. Shoppers read it before they buy from a brand they do not know, and a clear one can tip the decision.

What a good policy covers

1. Window: how many days after delivery (for example 7 or 10).
2. Eligibility: which products can be returned, and the condition they must be in (unused, with tags, in original packaging).
3. Exceptions: items that cannot be returned, such as innerwear, personalised or perishable goods, with the reason.
4. How to start: a link or a WhatsApp number, with the order number needed.
5. Pickup or self-ship: who arranges it.
6. Who pays return shipping, and when.
7. Refund method and timing: original payment method, store credit or exchange, and how many days after the item is received and checked.
8. COD orders: how you refund them, usually by UPI or bank transfer, collected through a secure form.
9. Damaged or wrong items: you pay, and you replace quickly.

Use plain language and put a short summary at the top.

Exchanges and credit

Exchanges keep the sale. Offering a free exchange for size problems, and store credit for change-of-mind returns, often reduces refunds. Make the choice explicit: "Choose a refund or an exchange."

Think about who pays shipping

Test and measure. The right choice depends on your margins and category (cost per order).

Know the rules

Consumer protection rules in India give buyers rights in cases such as defective goods, misleading descriptions and unfair terms, and marketplaces and platforms may impose their own conditions. Your policy cannot remove rights the law gives. Ask an adviser to review it, and keep it consistent with your product pages and your promises.

Reduce returns at the source

• Accurate photos and descriptions (product pages).
• Size charts and fit notes, with model measurements.
• Quality checks before dispatch.
• Good packaging so that goods arrive undamaged (packaging).
• Verified COD orders to cut refusals (COD tips).
• Read return reasons every month, group them and fix the top cause.

Handle abuse sensibly

Some customers misuse returns, for example wearing an item and sending it back. Inspect returned goods, record the condition with photos, and apply the policy even-handedly. Do not penalise honest buyers because of a few bad actors.

Make it easy to find

Link your policy in the footer, on product pages, in the cart and in order confirmation messages. Mention it in your WhatsApp templates (order updates).

Track

What to do next

Draft your policy using the checklist, and give it to three customers or friends to read. If any question they ask is not answered, add it.