Table of Contents
If you run an online business, you need an exchange policy. When people buy products online, they may not know if those products are quite suitable. Therefore, they may want to exchange the products for something more appropriate.
Your exchange policy should clearly and succinctly detail the terms regarding whether people can exchange products they buy from you. This article will helpfully outline why your business needs an exchange policy, and terms outlining:
- when someone can exchange a product;
- time limits for exchanges; and
- any barriers to exchanging a product.
Why Does My Business Need an Exchange Policy?
Attracting Customers to Your Business
One purpose of your exchange policy is to attract customers to your business. When buying online, customers can shop around and compare online stores easily. One thing that will make you stand out from the crowd is an excellent exchange policy.
Complying With Consumer Law
The Consumer Guarantees Act (CGA) provides standards for any products sold by a trader in New Zealand. Under the CGA, your products must be:
- fit for purpose;
- of reasonable quality;
- delivered in a reasonable time and in good condition;
- sold at a reasonable price; and
- the same as your description of the product.
If you do not meet these standards, you must provide a remedy for your customer. A remedy can be a:
- repair;
- refund; or
- replacement.
Exchanges can be a part of that process, qualifying as a replacement. Therefore, having a return and exchange policy is essential to ensure you comply with consumer law.
3 Terms You Need in an Exchange Policy
1. When Can Someone Exchange a Product?
You do not need to offer exchanges or replacements unless the products do not meet consumer law standards. However, customers like to have the security of knowing that they can change their product if it does not suit them, especially when they are buying online and cannot see the product first-hand. This will help attract customers, as well as improve customer loyalty. Therefore, you may wish to allow exchanges in other situations, including if:
- a customer orders the wrong size;
- something damages their product within the first 30 days of purchase;
- they change their mind about the purchase.
2. Time Limits for Exchanges
Your business’ exchange policy should set out all the terms and conditions relating to when you allow product exchanges. It is up to you:
- what situations allow for exchanges; and
- how long you will allow customers to exchange products after purchase.
You should detail this information in your exchange policy. Generally, exchange periods of around 15-30 days of receiving the product are standard.
3. Barriers to Exchanging a Product
You should clearly detail anything that may prohibit your customers from exchanging a product. For example, you could only allow exchanges on specific products or forbid exchanges of sale products. Additionally, you should determine if you want to provide certain deals for your customers or if they will have to pay for the shipping to exchange products. You should also ask customers to provide their proof of purchase.
Continue reading this article below the formCall 0800 005 570 for urgent assistance.
Otherwise, complete this form and we will contact you within one business day.
Make Your Exchange Policy as Straightforward as Possible
You should keep your exchange policy as clear as possible and easily visible on your website. Most people reading it will not be lawyers. Therefore, you should avoid using complicated language. Complex legal and financial jargon will make it difficult for people to understand and engage with the policy.
Need help marketing your digital business? Use LegalVision’s free Marketing Plan for Digital Businesses template to create a robust marketing plan.
Key Takeaways
An excellent exchange policy can be a point of difference in an oversaturated online market. Ensure that your exchange policy is as straightforward as possible. Your customers will be more attracted to reading a clear and concise document than a long and complicated one.
If you need help writing your online business’s exchange policy, our experienced eCommerce lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page.
Frequently Asked Questions
If your product is not up to the standard that consumer law requires, you will need to offer a replacement product. This is slightly different from allowing consumers to exchange products if they wish to or if the product does not fit.
It would help if you made your policy as visible and easy to access as possible. Therefore, putting it on the front page of your website would be a good idea.
We appreciate your feedback – your submission has been successfully received.
