Merchandise return policy

This term refers to the policy of the retailer in returning the merchandise in different situations. The handling of merchandise returns is an important customer service—it can even make the difference between making a profit and losing money. The return policy can range from ‘no returns, no exchanges” to “the customer is always right”. A retailer needs to choose these extreme policies or a more moderate one. Few services build customer goodwill as effectively as a fair return policy.