Offering extra flexibility in your returns policies can help boost sales and customer confidence around the Christmas shopping period
Offering extra flexibility in your returns policies can help boost customer confidence and encourage sales during the busy Christmas shopping season. Customers purchasing gifts are often buying for other people and may be unsure whether they have chosen the right item, size, style, or colour. A more flexible returns policy can help reduce that uncertainty and make customers more comfortable completing a purchase.
The holiday season is a busy time for both retailers and shoppers. As customers rush to complete their Christmas shopping, mistakes or changes of heart are inevitable, and despite their best intentions, the gift they’ve chosen may not always be the right fit, size, style, or colour for the recipient.
Consider adjusting your returns and exchanges policy for the festive period. Doing so can improve customer satisfaction, encourage repeat business, and help your business stand out from competitors during one of the busiest retail periods of the year.
Here are some ways you can provide added value to shoppers this Christmas season.
Extend the return period
Consider lengthening your return window during the holiday period. For example, goods purchased in November and December could be eligible for return or exchange until late January, giving gift recipients an opportunity to make a return after the Christmas and New Year break.
Offer gift receipts
Gift receipts allow recipients to exchange or return an item without revealing the purchase price. This can improve the gifting experience while giving customers greater confidence when buying gifts.
Allow exchanges for a limited time
If your return policy typically does not allow exchanges, consider offering a holiday-specific exception. This can provide customers with the flexibility to return an item and choose something else, whether it’s a different size, colour, or an entirely different product.
Free shipping for exchanges
Consider offering free shipping for customers wishing to exchange an item for a different one (with conditions, such as having the receipt and keeping the item unopened). This added convenience could help encourage exchanges and reduce returns overall.
Offer store credit for change-of-mind returns
Where appropriate, consider offering store credit instead of cash refunds for change-of-mind returns. This provides customers with flexibility while helping retain the sale within the business.
When updating your Returns and Exchanges Policy, ensure the information is clearly communicated and easy for customers to find before they make a purchase. Display any Christmas-specific terms prominently in-store, online, and during the checkout process.
Clear communication helps manage customer expectations, reduce disputes, and ensure customers can confidently shop with your business during the festive season.
These suggestions relate to returns and exchanges offered as a matter of store policy. They do not affect consumers’ rights under the Consumer Guarantees Act where goods are faulty or otherwise fail to meet the guarantees in the Act.
Get your retail business ready for Christmas
As the Christmas season approaches, Retail NZ is sharing all the information you’ll need to know for a successful holiday season. From public holiday entitlements to recruitment tips, customary closedowns, to security and loss prevention, take a look at our Christmas Hub.
