Store credit or Refund for returns?

[sun818]

Up to this point, we are offering full refund. But the thought did occur for "customer loyalty", a store credit could be suggested or enforced. Any thoughts on the advantages or disadvantages?

[kevinpate]

From me with my user/customer hat on tight:

If I'm advised that, should I receive something that is defective or not otherwise as presented, my return option is a store credit, I'll be checking out the competition in depth before I'll be clicking on a buy button at storecreditonly.net
unless the item is one where it's the industry standard for exchange/replacement.

[Essex_boy]

Give a refund plus a 5% off voucher, youll be surprised how many spend again.

[RedWolf]

Thanks Essex_boy, I like that idea. I have very few returns, but I think that it might work on one I just had. A woman ordered a $180 necklae for her daughter's gift, and it turned out the daughter didn't wear much jewelry. I halfway expected the mother to keep the piece though because she raved so much about it in a phone call when she got the order. I think I'll send a letter in addition to the email confirming the refund to her card and also include a discount voucher.

[sun818]

> is defective or not otherwise as presented

Yes, for items not as described or arriving defective, I would expect a full refund and postage paid for return shipping.

But what I'm asking about are new items returned because the customer the didn't want it.

[Rubylily]

Agree with essex_boy here, an offer of money off a future purchase works like a charm. I would also say that it depends on what country you're operating in. If you're in the UK or Europe then you're going to have to abide by the distance selling regulations, and you must give a full refund if the customer returns the goods within a certain time-frame, it's their right under law.