Ecommerce Wins with DIL❤️ KHOLKE, Hassle Free Returns & Refunds Policies!

Now you might be wondering, this kind of policy could lead to abuse by some customers (Valid Concern), but not having such a policy is a very short sighted approach, let me share you a story from my childhood, that illustrates this point.

As a young student I frequented a local stationary shop, to buy the essentials(Pencils, Erasers, Pens, etc.), When I got promoted to the 5th Class, I was excited to transition from pencils to pens. Parker pens were a craze in students those days, they were an oppurtunity show off, and a status symbol especially among kids.

So I went to the shop with ₹500 (a huge amount for me in those days, especially for a pen, Aajkal toh itne ki redbull pee jaata hu). I paid the money to the shopkeeper, and went home straight excited to start using the pen.

However, my excitement turned to disappointment when I discovered the pen’s nib was broken right out of the box. It was unusable.

Heartbroken, I returned to the shop, hoping for understanding and a simple exchange. Instead, the shopkeeper accused me of breaking the nib myself and refused to help, claiming it was my responsibility to check the pen before leaving. Despite my loyalty over the years, the shopkeeper valued policy over customer satisfaction. I decided never to shop there again and always went to stores that might be a little far away instead.

Now as a 26 year old me working in E-Commerce industry, I see brands make same mistakes, by prioritizing short term benefits over long-term customer relationships.

Here are a few examples:-

No Customer would actually be open your packages with one hand and recording an inboxing video from other hand. You need to have some trust in your customers.

Now here’s some quick maths, let’s consider a serious skincare brand:-

Consider a hypothetical D2C skincare brand:

• Average Order Value (AOV): ₹650
• Purchases per Loyal Customer Annually: 7
• Gross Margin Per Order: 75%
• Customer Lifespan: 2 years
• Customer Lifetime Value (CLTV): ₹6,825

Now let’s assume one of the transactions is defective, and needs to be exchanged or refunded, the brand would ideally not bear a loss above ₹650 (in the worst case scenario). Do you think it’s wise to risk ₹6825 worth of profit for a ₹650 order?

Yes there are some exceptional customers who will always return your orders (happens a lot if you are into clothing, people buy clothes, only to replace it after the ocasion is over), but again these are very exceptional customers. Brands can always block future orders from these. But for most brands in various different categories, it’s not wise to risk CLTV for the loss incured in 1 single order.

So, open your heart—’Dil Kholo’—and offer hassle-free returns and refunds. This not only safeguards your CLTV but also enhances your brand’s reputation through positive word-of-mouth.

BTW who remembers the viral FB campaign? Dil Kholo duniya khulegi? (Off topic jaane ki buri aadat)

Until next time 🍺