In e-commerce, having a clear refund policy is essential for both businesses and customers. It sets the rules for returns and refunds, building trust while protecting the seller. Studies show about 30% of online purchases are returned, so a straightforward policy can help reduce confusion and disputes.

A good refund policy includes a return window, usually 14 to 30 days, and specifies that items should be in their original, unopened condition with packaging intact for a full refund. Restocking fees, often 10% to 20%, can discourage unnecessary returns but should be clearly communicated to avoid frustration.

Refunds can be processed through the original payment method, store credit, or exchanges. Most shoppers—about 70%—prefer refunds back to their original payment method for added security. A well-crafted refund policy streamlines operations and boosts customer confidence, making it a key part of successful e-commerce.