Designing a returns policy that does not sink you

A returns policy does two jobs at once. It reassures a buyer who is about to spend money with a supplier they have never used, and it caps your exposure when something goes wrong. Most policies fail at one of those two jobs.

The four clauses that matter

Clause	What it must answer
Window	How long after delivery can a return be requested?
Condition	What state must the item be in — unused, original packaging, tags?
Who pays freight	Buyer or seller, and does it differ for defects versus change of mind?
Remedy	Refund, replacement, or store credit — and who chooses?

Where policies go wrong

Too vague on freight. "Return shipping is the buyer's responsibility" is fine for change of mind and terrible for a defective item. Split the two cases explicitly.
No deadline for reporting damage. Without one, a claim can arrive six weeks later. Ask for notification within a set number of days of delivery.
Silent on wholesale. Trade orders are often non-returnable by default, but say so on the wholesale page rather than letting buyers discover it.
Promising refunds before inspection. Commit to a decision window, not an instant refund.

A structure that works

Retail: 30 days from delivery. Unused, original packaging. Defective items: we cover return freight and replace or refund. Change of mind: buyer covers return freight, refund on inspection.

Wholesale: defects reported within 7 days of delivery, with photographs. Replacement or credit at our option. Change-of-mind returns not accepted on trade orders.

Adjust the numbers to your category and margin. The structure matters more than the specific figures — the point is that both buyer and seller know exactly what happens next.

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