Refund Policies – Know What to Offer

Producing an online product is a great way to make money online. It’s fast and there are no shipping costs simply because your product is downloadable. It’s a great selling feature to the customer because they can instantly have access to the information in no time. But what if they are not pleased with your digital product? Should you offer a refund?

Well, if you are selling a digital product online a refund policy is always good to have because it makes your customer feel as though they have nothing to lose. It also makes you look more professional because by offering a refund to unsatisfied customers, it makes you appear confident in the fact that you’re offering a high quality product that you know they’ll like. But of course, you can’t please everyone so a refund policy is always a good option.

So, what do you do if your customer wants a refund? Do they keep the download and you send them the money back or do you ask them to send it back or delete it?

Basically, there’s really no way to have them send it back in any form or fashion. You cannot ask them to delete it. It’s downloaded on their computer. You can’t stop that. Getting software to do that is too big of a customer support issue for you. You simply need a refund policy to establish trust with your buyer and it reinforces your credibility. If you see any digital product sold online there is a refund policy. That’s what you have to compete with. There will always be a similar product available that competes with yours and if you don’t offer a refund policy it’s most likely your potential customer may go elsewhere.

Offering a 60 or a 90-day money back guarantee on your digital products usually increases conversions. The longer you give them, the better your conversion will be. That’s just a side note. But really, you do need to offer refunds to your customers. It also depends on the price.

In any event just give them a regular PDF. And then if they ask for a refund then let it go and accept the loss. As for refunding the payment… You would submit the payment back via the payment method that they paid by. So, if they paid with a check, give their refund back via check. If they paid with Paypal, give it back via Paypal. If they paid with a merchant account, refund them via the merchant account etc. This is a very important point for anybody that’s ever doing any business online or any kind of business for that matter.

Doing this allows you to track back to make sure everything goes through correctly. If they paid you with Paypal or a merchant account, don’t send them a check. Send it back to them the same way they gave it to you, if not, that could cause some issues like I’ve seen in the past. Actually, in my case, somebody charged with their credit card, we sent them a check to refund them, and then they charged back on the credit card and they already got a check from us. So, they actually got double the money back. Of course, we didn’t exactly lose in the end because we showed proof, but problems like this still tie up your money too long. So use the exact payment method that you used in the beginning.

Always offer a refund policy but take into consideration what you need to do for chargebacks to ensure you don’t have a big headache on your hands.

Warmest regards,

Matt Bacak

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