Crafting Return Policies on Etsy

Learn how to create clear and effective return policies for your Etsy shop, and manage buyer returns smoothly

Managing your Etsy shop requires more than just uploading products and setting prices. One crucial aspect that you need to pay attention to is your return policy. In this article, we’ll walk you through how to set up return policies for each of your product listings on Etsy. Your return policy provides vital information to potential buyers, including:

  • The items in your shop that can be returned or exchanged
  • The time frame within which you accept returns and exchanges

You can choose to establish individual policies for each product listing or a general policy applicable across all physical items in your store. Remember, outside the European Union (EU), a return policy must be set when creating or editing a physical item listing—even if it’s merely stating no returns or exchanges are accepted.

For broader store-wide policies like cancellation and privacy rules, please visit shop policies.

Setting Your Listing's Return and Exchange Policies

When creating new listings or managing existing ones, Etsy allows you the flexibility of crafting new return policies, using an existing one, or opting for the simple default template provided by Etsy. Here’s how to create a return and exchange policy through Policy settings:

  1. Go to your Shop Manager
  2. Click on Settings.
  3. Choose Policy settings
  4. Select Returns and exchanges.
  5. Click the Create Policy button.
  6. Decide if you wish to accept returns and/or exchanges for that item by checking the box next to each option.
  7. Choose the time frame for accepting returns and exchanges from the dropdown menu.
  8. Click Save and Apply, then select Publish.

If you’ve set up at least one policy previously, Etsy will suggest using your most frequently applied policy across active listings.

Etsy’s Policy Settings

Modifying a Listing’s Return Policy

Need to adjust an existing return policy? Follow these steps:

  1. Navigate to your Shop Manager
  2. Choose Listings
  3. Select the listing whose policy needs modification
  4. Go to the section labeled Returns and Exchanges
  5. Choose Change Policy
  6. Select from one of your other existing policies (The current policy is displayed as Applied)
  7. If you prefer creating something new, click on Create Policy

You can also change return policies for multiple listings simultaneously through the Listings Manager tool.

Using a Simple Return Policy

Etsy provides sellers with an uncomplicated, straightforward template for their return policies:

  • Buyers can either exchange or return items
  • Returns must be made within 30 days after delivery
  • Buyers are responsible for any loss in value if returned items deviate from their original condition or any potential shipping costs

To apply this policy, select Apply simple policy in the listing editor.

Accepting Returns or Exchanges: Is It Mandatory?

While all physical items need to have a return policy, the decision to accept returns is entirely up to you. However, EU consumer protection laws mandate a minimum 14-day return period for orders shipped within the region. For more details on this topic, check out EU Law Regarding Returns and Refunds.

Handling Returns for Digital Downloads

Return policies for digital downloads are not necessary as they can’t be returned or exchanged physically. However, if a buyer faces an issue with their purchase, it’s up to you how you’d like to address it.

Accepting Returns for Optional Customized Items

Should you sell customizable products but only accept returns on non-personalized orders, make sure buyers are aware of this by mentioning it in your shop’s FAQ section and individual product descriptions.

Adding Frequently Asked Questions on Etsy's Sales Channel Settings

Here’s how you can adjust your FAQs:

  1. Go to your Shop Manager
  2. Click on the pencil icon next to your shop name under Sales Channels
  3. Under Frequently Asked Questions, click on Add an FAQ
  4. Choose Custom and personalized orders from the dropdown list
  5. In the Answers box, specify that customized or personalized orders are not eligible for return
  6. Click on Save

You may also modify your Messages to Buyers section informing shoppers that customized items cannot be returned.

Remember: Crafting a clear and comprehensive return policy is key to running a successful Etsy store. It enhances transparency with shoppers and helps prevent potential disputes down the line.

Average Number of Return Days on Etsy

Understanding the standard timeframe for returns on Etsy can guide you in setting your own shop’s return policy. From extensive shopping experiences on Etsy, it appears that the average number of return days offered by sellers is around 30 days. However, this varies from shop to shop. Some generous sellers provide a lengthy 100-day return window while others limit this strictly to 14 days.

Additionally, a common practice among many sellers is asking buyers to contact them within 5 days of delivery if they wish to initiate a return. It’s important as an Etsy seller to clearly communicate your specific return policy before buyers finalize their purchase. This ensures transparency and helps manage buyer expectations effectively.

Do Etsy Sellers Pay for Return Shipping?

When it comes to handling return shipping costs on Etsy, the responsibility can vary and largely depends on the seller’s shop policies or specific agreements made between the buyer and seller. If it’s not expressly stated in your shop policies, you will need to work out who covers the return shipping cost with your buyer. In some cases, sellers might opt to bear these expenses as an act of goodwill or to foster a positive customer relationship.

However, if a buyer is returning an item due to reasons that are not at fault of the seller (such as changing their mind about a purchase), it is generally expected that they cover the return shipping costs themselves.

Remember, clear communication is key when addressing who should pay for return shipping in order to maintain good customer relations and avoid misunderstandings.

Issuing Full or Partial Refunds on Etsy

As an Etsy seller, you might need to issue a full or partial refund for an order. This can be done easily in your Shop Manager using the following steps:

  1. Open Shop Manager on Etsy.com.
  2. Select Orders & Shipping.
  3. Click on the … (ellipsis) icon next to the order to be refunded.
  4. Choose Issue a Refund.
  5. Choose a reason for issuing the refund and add an optional message to the buyer.
  6. For a full refund, select ‘Issue a full refund’. For a partial refund, input ‘Amount to refund’ next to the item.
  7. Review and submit.
Etsy Shop Manager’s Orders and Shipping Dashboard

Etsy automatically reimburses transaction and processing fees related to refunded transactions into your Payment account, along with listing fees if the transaction was canceled. Refunds can be issued after payment is processed and before 180 days have passed since processing via Etsy Payments. Beyond 180 days, refunds should happen outside of Etsy - please note that in this case, seller fees won’t be refunded by Etsy.

In certain situations like when 180 days have passed since the purchase date or the buyer has filed a chargeback against the order, refunds cannot be initiated and the ‘Issue Refund’ button will not appear as an option. Understand here How to issue a full or partial refund

Customizing Return Policies For Individual Items

The flexibility of your business is an essential factor in your success as a creative entrepreneur. Recognizing that some unique items you sell might not be returnable, like custom-made or one-of-a-kind pieces, we’ve updated our features to better serve your needs. We’re thrilled to introduce the ability for you to set different return policies for each listing in your shop, allowing you to clearly communicate with buyers about which items can be returned.

Accepting returns remains completely optional and should align with your individual business requirements. However, keep in mind that making it clear which items are returnable (if any) will enhance buyer trust and satisfaction.

What Does This Mean for Your Shop?

Please ensure that you transition to the new listing-specific policies by October 31, 2022. With these changes, we aim to make it easier for buyers to understand clear return policies across the Etsy marketplace - especially important during busy shopping seasons. Here’s what this change means depending on your current shop policy:

1. If You Currently Accept Returns:

We’ve worked on making this transition as smooth as possible for you by applying your existing policy to all of your listings automatically. Please review these settings via the Policy Settings page of Shop Manager before October 31st and make sure they still fit all of your listings. After October 31st, feel free to make additional changes whenever needed. For bulk edits or applying a single return policy across multiple listings at once, use the Listings Manager tool.

2. If You Don’t Accept Returns:

If you do not accept returns currently and wish to continue this practice across all of your listing return policies - no action is required from you! However, if there are specific listings where a return policy could apply - feel free to update those individually.

3. If You Have A Written Custom Return Policy:

Starting from October 31st, Etsy will no longer support custom-written return policies. This change is in response to feedback from buyers who prefer consistent return policies across Etsy. However, you can still maintain your personal touch and brand voice via the FAQ section of your shop. Don’t forget to set up return policies for your listings if you only have a written policy currently. If these aren’t reviewed or changed by October 31st, we won’t show any return policy for those listings to buyers.

4. If You Don’t Have A Return Policy:

To create a return policy, navigate to Policy Settings through Shop Manager > Settings. Here, you can create multiple return policies that can be applied as needed across different listings. Accepting returns remains optional and should align with your individual business requirements.

5. If You Sell Digital Items:

Note that sellers are no longer able to accept returns for digital items as there’s no feasible way for buyers to return them on Etsy. However, if a buyer contacts you about an issue with a digital item they’ve purchased, it’s at your discretion how best to resolve it.

Introducing New Tools For Returns

We understand that managing listings can be time-consuming so we’re introducing new tools including the ability to update policies for multiple listings at once - ensuring this process is as convenient as possible:

1. Converting Your Existing Shop Policy into Listing-Specific Policies: When reviewing changes in Shop Manager, Etsy will prompt you to review the shop policy applied to all of your listings (which is based on your existing policy). You can either publish immediately (if everything seems fine) or make any necessary adjustments before these are shown live on October 31st.

2. Creating A New Return Policy: Go back into Shop Manager > Settings > Policy Settings where you can create multiple return policies applicable across various listings.

3. Applying A Return Policy To Your Listings: Do this via dropdown options on each listing page - or apply the same policy across multiple listings via the Listings Manager.

4. Bulk-Edit: Apply return policies to multiple listings at once.

Your feedback and input greatly contributed to these new tools. We hope they’ll help you run your Etsy shop more effectively while enhancing buyer experiences.

FAQs:

1. What if I don’t update my return policy by October 31?

If you don’t manage to review or make changes by then, we’ll simply apply your current shop’s return policy to each of your listings. You can change this at any time moving forward.

2. Can I continue with my existing return policy?

Yes, but now instead of applying it across your entire shop, it will be set for each individual listing. If you wish not to accept returns for all items, you can continue doing so across all of your listing return policies.

3. What happens if I want to alter the applied return policies?

That’s perfectly fine! Anytime after October 31st, you’re free to review and make necessary changes - either individually or in bulk via the Listings Manager tool.

4. Where can I check applied return policies?

Go back into Shop Manager > Settings > Policy Settings where you’ll find all relevant details.

5. Do I have to accept returns?

No, accepting returns is completely optional and depends on what suits you best for

Designing Your Return Policy

When establishing your return policy, it’s crucial to address the following key questions:

  • Do you offer refunds?
  • Under what circumstances (such as damaged product, poor craftsmanship, etc.) are refunds offered?
  • What is the estimated time frame for securing an eligible refund?
  • Are there situations where you might offer partial refunds?

Here is a sample return policy:

“We appreciate your business and want to ensure you’re completely satisfied with your purchase. If for any reason you are not happy with the item received, we offer full or partial refunds within 14 days of delivery. Please contact our shop directly to initiate a refund request.

For damaged items, please provide photographic evidence of the damage. Once approved, your refund will be processed within 48 hours. Partial refunds may be offered in situations where only part of an order is returned, or if there’s minor damage that doesn’t significantly impact the product’s use.”

Here are a few examples of template return policies:

1. Standard Return Policy

“We gladly accept returns and exchanges. Contact us within 14 days of delivery and ship items back within 30 days of delivery. Buyers are responsible for return shipping costs. If the item is not returned in its original condition, the buyer is responsible for any loss in value.”

2. No-Return Policy for Custom Items

“Due to the nature of these items, unless they arrive damaged or defective, we can’t accept returns for custom or personalized orders.”

3. Conditions-based Return Policy

“We accept returns only if the item is unopened and unused. The buyer must contact us within 7 days of delivery and ship the item back within 14 days of delivery.”

4. Exchange Only Policy

“We do not offer refunds but will happily exchange an item if it’s returned in its original condition within 30 days from purchase date.”

5. Digital Products Return Policy

“Because of the nature of digital files, we do not accept returns or provide refunds on digital products after they have been downloaded.”

These templates are just starting points - remember to customize them according to your shop’s specific needs and requirements.

Tips To Consider Before Crafting Your Return Policy:

1. Understand Your Products

Before creating a return policy, it’s essential to understand the nature of your products. Some items might be more prone to returns than others. For instance, clothing and accessories often have higher return rates due to fit and style issues.

2. Consider Market Standards

Look at the return policies of similar sellers in your market segment on Etsy and other platforms. This can give you an idea of what buyers in your industry might expect.

3. Be Clear and Concise

Ensure that your policy is easy for buyers to understand. Avoid using complicated language or legal jargon - simple, straightforward terms are best.

4. Fairness is Key

Try to strike a balance between protecting your business interests and being fair to customers. A very restrictive policy may deter potential customers.

5. Define the Return Window

Clearly specify the time frame within which returns or exchanges can be made following purchase or delivery.

6. State Condition for Returns

Be explicit about the condition you expect returned items to be in - unused, with tags intact, original packaging, etc.

7. Detail Process for Returns

Outline how customers should request a return (for example by contacting you directly through Etsy), how they should ship it back, and who pays for return shipping costs.

8. Restocking Fee

If applicable in your jurisdiction, consider whether you want to charge a restocking fee which could help cover costs associated with processing returns but may also discourage potential buyers if not competitively set.

9. Exceptions

Always define clear exceptions where returns will not be possible such as custom-made items or digital downloads

10. Customer Service

Remember that good customer service often revolves around flexibility so while setting policies is important ensure there is some room left for addressing unique individual circumstances.

Remember: A well-crafted return policy can help build trust with buyers and may even improve sales by giving customers confidence in their purchase. It’s a critical part of customer service and the overall shopping experience.

Common Buyer Issues During Return Process and Possible Solutions:

1. Item Arrived Damaged

Solution: Instruct the buyer to take photos of the damaged item and packaging as proof. Assure them you will replace the damaged item or offer a refund once they have returned it.

2. Buyer Received Wrong Item

Solution: Apologize for the mistake and instruct them to return the incorrect item. Offer to cover return shipping costs since this was an error on your part. Assure them that they will receive the correct item as soon as possible.

3. Buyer Changed Their Mind

Solution: If your policy allows returns for change of mind, instruct buyers on how to return the product (e.g., should be unused, in original packaging). Remind them that they may be responsible for return shipping costs.

4. Item Doesn’t Match Description

Solution: Ask buyers to provide specific details about how the product doesn’t match its description (photos can help). Depending on your policy, offer a replacement or refund after receiving the returned item.

5. Delayed Shipping Resulting in Late Arrival

Solution: Apologies for any inconvenience caused by factors outside of your control (like carrier delays). If it’s a time-sensitive matter (like a gift), consider offering expedited shipping next time or a small discount on their next purchase as compensation.

6. Trouble with Return Shipping Costs

Solution: Some buyers might find paying for return shipping burdensome if they did not expect it initially. Clear communication about who’s responsible for these costs upfront can prevent this issue, but offering to split costs or providing prepaid return labels can also be solutions.

Remember, every situation is unique and requires judgment depending on its specifics and what you believe is fair—both to your customer and to your business.

Assisting a Buyer with Returning Items

Handling returns can be a daunting task for both sellers and buyers. Here’s how you can assist your customers through the process:

1. Provide Clear Instructions

Ensure your return policy is easy to find and understand. Include specific instructions on how to initiate a return, where to ship it, and any conditions that must be met (like original packaging).

2. Open Communication Channels

Allow buyers to reach out easily if they’re considering a return. Be responsive in answering their queries about your policies.

3. Offer Assistance

If the buyer has trouble understanding the return policy or procedure, offer assistance through step-by-step guidance.

4. Be Empathetic

Understand that returns are not usually pleasant experiences for customers. Show empathy in your interactions; this can turn a potentially negative experience into a positive one.

5. Cover Return Shipping Costs (if applicable)

If it was an error on your end (wrong or defective item), covering the cost of return shipping would be fair and appreciated by the customer.

6. Facilitate Return Process

For domestic orders, consider providing prepaid shipping labels for ease of process.

7. Prompt Refunds or Exchanges

Once you’ve received the returned item and checked its condition, promptly issue refunds or send out replacement items as per your policy.

8. Follow-up With Buyers Post-Return

After concluding the return process, follow up with buyers to ensure they’re satisfied with how their return was managed.

Conclusion

Having a clear and comprehensive return policy is more than just a legal necessity—it’s an essential part of providing excellent customer service. By understanding your responsibilities as a seller, you can craft policies that are not only compliant with rules and regulations but also accommodate your unique business needs.

Remember, a well-crafted return policy not only protects you as a seller but also instills confidence in buyers, making them more likely to purchase from your Etsy shop. So take the time today to review or establish your return policies—it could make all the difference tomorrow!

FAQ

Optimizing Your Etsy Shop: How to Set Up Effective Return Policies
Can I have different return policies for different items in my Etsy shop?
Yes, Etsy has introduced listing-specific policies that allow sellers to establish distinct return policies for each physical item listed in their shops.
What should I do if a buyer wants to return an item but it's past my specified return window?
In such cases, it's up to your discretion as a seller whether or not you want to accept the late return request. You may choose to enforce your stated policy or make an exception based on various factors like customer satisfaction or maintaining positive shop reviews.
Do I need to accept returns for digital items sold through my Etsy shop?
No, sellers aren't able to accept returns for digital downloads due to their nature (they can't physically be returned). If a buyer encounters an issue with a digital product they've purchased from you, how you handle it is entirely at your discretion.
Are there any requirements regarding accepting returns or exchanges in my Etsy shop?
For sellers outside of the EU, all physical item listings must have a set return policy so buyers know what they're agreeing upon when making a purchase. However, whether you decide to accept returns or exchanges is based on your individual business needs. For sellers within the EU, consumer protection laws require at least a 14-day return window for orders shipped to those countries.
How should I handle returns for digital downloads on my Etsy shop?
Return policies are not necessary for digital downloads since they can't be returned physically. However, if a buyer faces an issue with their purchase it's up to you as seller how you'd like to address it.