A return policy defines eligibility windows, condition requirements, refund methods, and who pays return shipping. Clear, generous policies increase conversion rates but may increase return volumes. Tracking which policies correlate with return rates helps merchants balance customer experience with operational costs. Many merchants offer different policies by product category or customer tier.
← Glossary
Return Policy
The documented rules governing whether and how customers can return products for refunds or exchanges.
Related terms
- Return Rate — The percentage of orders that customers return within a given period, a key metric for product and operational health.
- Refund Rate — The percentage of revenue returned to customers through refunds within a given period.
- Restocking Fee — A charge deducted from customer refunds to cover the cost of processing and inspecting returned items.
- Customer Satisfaction Score — A metric measuring how satisfied customers are with their purchase and return experience.