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<h3 id="1">What is a return and exchange policy?</h3> A return and exchange policy is a set of rules a retailer creates to manage how customers return and exchange unwanted merchandise they’ve purchased. These policies tell customers what items can be returned and for what reasons, as well as the timeframe over which returns are accepted.From<a href="https://www.apple.com/shop/help/returns_refund" target="_blank" rel="nofollow noopener noreferrer"> Apple</a>’s strict 14-day return policy, to<a href="https://www.ikea.com/us/en/customer-service/returns-claims/" target="_blank" rel="nofollow noopener noreferrer"> IKEA</a>'s generous 365-day turnaround, just about every major retailer offers return and refund policies to their customers—and your small business should, too. <h3 id="2">Why have a return policy?</h3> A fair return and exchange policy builds trust between a business and its customers. In fact, offering a clear and consistent way for customers to return a purchased item can increase conversion and repeat rates.Giving customers a full refund on their orders can result in a loss of profitability, and knowing that someone disliked your product can be disheartening for business owners who strongly believe in the benefits of their products and services.For these reasons, it can be tempting to avoid creating a comprehensive return and refund policy and leave the mounting problem unaddressed. As you’ll see, however, this would be a mistake.