Are you planning to offer a money back guarantee but worried about the hassle that refund requests may bring?
First, if you are a handmade business owner, it is not necessary to offer a money back guarantee. However, it can help boost your sales a lot because it creates the best user experience possible.
Look at companies like Amazon, if you’re unsatisfied with anything, they’ll gladly take the product back in exchange for giving you back the money, so there’s not much of a risk. That’s why people keep going back to Amazon because they trust them.
So now let’s get started with some tips that will help you generate more sales by providing a money back guarantee and of course reduce how many refunds you’re getting.
1. Provide The Best Service Or Product
If you want to avoid a ton of refund requests, you must first ensure that you have a good product or service. If your product stinks, you should get a lot of refunds because it stinks to be taking people’s money and duping them out of their cash.
Take the time and energy to create handmade items or amazing products, provide fantastic service, because if you do that, what will happen is people won’t just buy from you, but they’ll tell others, their friends, their family about the experience they had with your business and they’re going to be much more likely to buy.
2. Provide More Than 30 Days Guarantee
At Craft Maker Pro, I offer a 60 days money back guarantee. I’ve found out is, when I did the A/B test on the 30-day money back guarantee, versus 60-day money back guarantee, I generated around 7 percent more sales.
3. Be Clear With Your Rules And Conditions
State in your store’s policy that customers should ship back the product to get their money back. If you’re going to give someone their money back, you should get your product back as well. And what you’ll find is a lot of people will want your product, they’re just hoping to get their money back without giving you back the product, but by doing this, you’ll also get fewer refunds.
4. Let Them Contact You
Provide an easy way for your customers to contact you. Don’t just let people cancel and get a refund by just clicking a button. Make them contact you. Or if they’re not going to email, have a form on your website that makes them leave a reason why they’re canceling and why they want their money back.
At Craft Maker Pro, I always ask them what the problem is because sometimes, customers issues are due to unfamiliarity of the software, with proper guidance and instructions, the problem gets solved and the refund request gets lifted. Although, I still issue refunds even if their reason is they don’t like the software or it didn’t suit their needs.
The important thing here is, this will give you meaningful insights on why people want a refund, and you can then take that data and offer them a solution first before going to the refund process, make your product and service better and it’ll help boost your conversions.
If you want to learn more, check these Insider tips about money back guarantee from Neil Patel:
I hope this helps you in getting started with your plans about offering a money back guarantee.
If you have questions and stories to share, please let us in the comments.