Have you ever bought a t-shirt in a shop, later changed your mind, and asked for an exchange? Physical shops usually allow for an exchange of products within a set time frame. The same can happen with online stores that have an exchange policy in place to handle this kind of request.
In this guide, we explain what an exchange policy is, what the difference is between an exchange and a return, and how to write an effective exchange policy for your online store.
An exchange policy is a document that helps e-commerce websites handle exchanges for goods or services.
In some cases – for example, when a product is damaged or faulty – consumers can ask for an exchange instead of a refund. An exchange policy contains all the details regarding the exchange process, such as what items are eligible for an exchange, in which conditions the items must be returned, how the shipping works, etc.
An exchange policy is often included in a return policy, which addresses returns and refunds more broadly.
The difference between an exchange and a return lies in the outcome:
While allowing exchanges is not mandatory, in some legislations, consumers have the right to return a product and get a full refund without any explanation. It’s called the right of withdrawal. For example, the EU consumers’ law allows people to return a product within 14 days and get a full refund, and you must respect this right. Learn more here →
To be effective, your exchange policy should be clear and easy to understand.
Here are the main elements to include:
Let’s see how these elements come together in a simple exchange policy.
We accept exchanges within 30 days of the original purchase. To be eligible, items must be unused, in original condition, and include all original packaging. To initiate an exchange, please contact us at info@company.com. We’ll guide you through the process. Customers are responsible for return shipping costs. Personalized items are not eligible for exchange.
The US clothing brand Reformation has an exchange policy exclusively for US consumers. As you can see below, it contains all the details regarding how products must be returned to get an exchange.
Instead, Best Buy has a shorter return and exchange period (14 days), which becomes longer for the clients that have subscribed to its membership. Best Buy also applies restocking fees, depending on the item bought.
While having an exchange policy helps you regulate how exchanges are handled in your e-commerce, an exchange policy alone may not be enough.
First of all, it is usually part of a broader return and refund policy, which addresses all the details regarding returns and refunds. Second, you may need a complete Terms and Conditions document to best protect the interest of your online store.
Terms and Conditions are strongly recommended for e-commerce because they contain all the information about the conditions of sale and disclosures on methods of payment, shipping, delivery, withdrawals, cancellation conditions, warranties, etc. – as commonly required by consumer protection regulations.
Your exchange policy could be a section of your Terms and Conditions document.
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