Returns and refunds are all a part of doing business online. Customers might be unsatisfied with their order for a number of different reasons—it arrived damaged, it's the wrong size, or it simply didn't meet their expectations. So they ask for a replacement or for their money back. But without a proper system for handling these requests, these situations can eat up a lot of time, energy, and money for you as a business owner, with hours spent on customer support emails and rises in shipping expenses for replacement products.
The good news is that it’s never too late to address a problem like this. With a great return policy and the right system in place, returns no longer have to be the dreaded part of e-commerce but can be seen as an opportunity that actually generates new leads for your business and increases satisfaction.
Let's dive into the law behind returns and refunds, and how your business should go about implementing these policy in a way that works for you, your business and your customers.
What are the laws for accepting returns and offering refunds?
14 days is the magical number when it comes to refunds and returns. You, as a business owner selling products and services must offer a refund to customers if they’ve informed you within 14 days of receiving their goods that they want to cancel. They also have another 14 days to return the goods once they’ve told you. You must refund the customer within 14 days of receiving the goods back. Please note: they do not have to provide a reason for returning the goods and receiving a refund.
When do you not have to offer a refund?
You do not have to refund a customer if they:
- knew an item was faulty when they bought it
- no longer want an item (for example because it’s the wrong size or colour) unless they bought it without seeing it
- damaged an item by trying to repair it themselves or getting someone else to do it (though they may still have the right to a repair, replacement or partial refund)
However, you do have to offer a refund for certain items (only if they’re faulty). For example:
- personalised items and custom-made items
- newspapers and magazines
- unwrapped CDs, DVDs and computer software
- perishable items (i.e. flowers)
It is also important for you to know that customers have exactly the same rights to refunds when they buy items in a sale as when they buy them at full price. Keep that in mind if an item is returned to you that was bought at a discounted/ sale price, that customer has the same rights mentioned in this blog as the customers that buy items full price.
Repairs and replacements
If a customer has received and ‘accepted’ an item, but later discovers a fault, you may have to repair or replace it. However, the customer can still reject the item after it’s been repaired or replaced.
A customer has accepted an item if they’ve:
- told you they’ve accepted it (having had enough opportunity to inspect the item before confirming they’ve received it)
- altered the item themselves
You will need to repair or replace the item if a customer returns it within 6 months, unless you can prove evidence that the item was not faulty when the customer bought it. You can ask a customer to prove an item was faulty when they bought it if they ask for a repair or replacement after the 6 months period. The proof of purchase could be a sales receipt, a bank statement, packaging etc.
Also note, you can only accept returns from the person who bought the item, no-one else. It must be the individual who purchased the goods that returns it to you.
What about warranties and guarantees?
A customer has the same right to free repairs or replacement regardless of whether they have a warranty or guarantee or not. This means you may still have to repair or replace goods even if a customer’s warranty or guarantee has run out.
Know your rights as well as your customers' rights
Returns and refunds aren't widely covered, so it's understandable if you're confused or are unsure what the laws are when it comes to this area of customer service/support. If you would like more information or want support in this area, we recommend you head over to the GOV.UK website. All the areas covered above can be found there, plus online support and contact information if you need it.
