Refunding with store credit can be a game changer for your returns process if used right. But what is it? And why is it so effective? With the projected growth of global e-commerce sales in 2023 reaching $6.51 trillion, it’s important to cash in on as much consumer demand as possible. Store credit is one simple way to do this.
In this article, I explain the basics of store credit before giving 3 examples of how it can be a game changer for your returns. Taking these simple steps can bring your e-commerce store to the next level, so read on for my top advice to get started!
What is store credit?
Store credit is an alternative to traditional cash or credit refunds when shopping online or in-store. Instead of a traditional refund, you’re offering shoppers credit with your store when they return a product instead. This credit can only be spent at your store, keeping the customer’s money within your business.
Top 3 ways store credit can be a game changer
There are plenty of benefits to refunding with store credit, making it a potential game changer for your returns. Below, I’ve highlighted just three key ways in which this is the case.
1. More flexibility when it comes to returns
First, store credit offers your business more flexibility when it comes to returns. Even if you’ve already followed our guide to implementing a robust returns or exchange policy, the returns and refunds process can be tricky.
If a customer returns a product in a condition that makes it unsaleable, the traditional options are to refuse the return or accept a financial loss. However, with store credit, you can let the customer return the product and redeem the credit at an equivalent value, keeping their money within your business. This can allow for partial returns or refunds, offering much more flexibility within your returns process.
2. Your customer has more options
Not only does store credit offer more flexibility for you as a business owner, but it provides your customer with increased options too.
For example, a customer might not want to wait for a refund to be issued by their bank or credit card company. This can often take some time. Instantly issuing store credit is one easy way to give them a fast refund option.
Additionally, often customers simply want to swap one product for another the same in a different size or style. They may also find an alternative product they want on your website. Exchanges of this nature can be carried out easily using our Exchange It app for Shopify. However, sometimes they might need a little time to decide what they want to buy. Offering store credit using Exchange It as the platform to manage the returns process is an easy way to give your customer additional time and options in this situation.
3. Improves customer retention, loyalty, and spend
Finally, as a result of offering more flexibility for your customers, refunding with store credit can be a game changer for your returns process because it can increase customer retention.
If a customer has store credit linked to a specific store, they are more likely to come back and use that credit. In many cases, shoppers will often spend additional money if they see further products or services they want when browsing to use their store credit. Topping up their baskets, store credit allows them to feel as though they are off-setting part of the purchase price, making it more likely for them to increase their spending.
Furthermore, offering store credit shows a willingness to be flexible, a hallmark of great customer service. If your service is good, you’ll generate a loyal customer base! You can therefore use credit options to your advantage to encourage loyal shoppers to come back time and time again, as they know they can trust your refund policy to be reliable.
Now is as good a time as any to implement better, more flexible refund options for your customers. So, why not try using Exchange It to get started on implementing the use of store credit? Our explainer video for refunds and chargeswill take you through the basics!