Many Happy Returns

Product returns are a problem for all retail establishments. But for an online storefront, it can be much more involved because of the nature of an online business. Let's face it: Returns are a fact of life in any retail environment.

It's important that you list your terms of sale and your return policy and procedures on your site. Remember that shoppers don't like surprises. If you're sure they understand the terms of their purchase before they click the Buy Now button, you can pre-empt some of your returns. Tell shoppers under what conditions they can return a product. How many days or weeks do they have to decide to return it? Will they get a refund or a credit? Who pays the shipping back to you? You or them? If the product is defective, who is responsible for replacing it? You or the manufacturer?

Be clear and specific, and list all details about your return policy on your website.

Tip: Protecting Against Return Abusers

The Return Exchange (www.returnexchange.com/) offers a weapon to combat repetitive product returns. It compiles a database of potential return abusers from data supplied by multiple stores and companies.

The compiled data is analyzed, and return/exchange abusers are identified. The Return Exchange notifies participating retailers in a process similar to credit card authorization. The POS system identifies potential abusers. The retailer can then take whatever action it deems appropriate.

Handling Disgruntled Customers

The old adage goes, "A satisfied customer tells no one. A dissatisfied customer tells 10 of his friends." And on the Net, a dissatisfied customer can tell thousands of other consumers about a bad shopping experience. But, as with product returns, customer complaintsif used correctlycan be a valuable resource that you can turn to your advantage. They can give you valuable insight into problems with your selling process. Accept each complaint for what it is: a chance to learn. And if you can solve the problem to a customer's satisfaction, that customer might even evangelize your company.

First, answer every complaint promptly and politely. Before answering with a solution to a customer's complaint, be sure that you understand the problem and be as specific as possible in your replies. If the customer is frustrated and complaining, expect the tone of his or her message to be angry and confrontational. That doesn't mean you should be. Respect your frustrated customers, and reply to them in an empathetic tone.

Tip: Pay Your Customers to Complain

Even negative feedback is useful in running your business. Sometimes, it's better than positive feedback. Run a "Complaint Contest" to elicit feedback on your site and service.

But don't stop there.

If you've not received a reply, follow up with the customer to make sure you have addressed his or her concerns. This additional email will show the complaining customer that you are willing to come to a mutually agreeable solution to the problem. If a customer sees that you are willing to work with him or her, this will go a long way toward resolving the issue.

Just remember that every complaint, no matter how illogical, should receive a reply. Your best efforts could turn a complaining customer into one of your best customers.

In summary, remember that good service is a promise you make to your customers. Don't make promises you can't keep. In the next chapter, we cover the hiring and staffing of your Yahoo! store.