SEO handholding .com

All your competitors have “Easy, Hassle free returns”, “110% Price Guarantee”, “Satisfaction Guarantee” plastered all over their web sites.  So, naturally, you also want to put up yours. However, it turns out your dropshipper won’t take back non-defective items. How to go about setting up a guarantee policy without bankrupting your business?

Guarantees exist to help overcome customers’ “fear of unknown” and procrastination. The point is to find such a structure that produces the highest return on investment for you. Depending on the situation, the highest ROI could be anywhere between “no guarantees” and “all guarantees” (unconditional, full-or-more money back, etc.—there are countless possibilities and combinations) and nobody will be able to tell you what exactly will work for YOU. You will have to test.

Luckily, as you test differrent guarantees, figuring out the best one is a pure mathematics issue:

1. Come up with a new guarantee structure.
2. Calculate how much this new structure will cost you. This has two aspects:
   • Fixed costs. These are costs that you will incure regardless of how many orders you service or how many times a guarantee is activated.
   • Per-order costs. These are costs that you will incure each time (and only if) a guarantee is activated.
3. Recalculate your profit margin taking into account the fixed costs above.
4. Calculate how many more orders do you need to get per each activated guarantee.
5. Test to see:
   • How many customers activate the new guarantee.
   • How does the new guarantee impact your sales.
6. Calculate whether your profits increase or decrease with the new guarantee in place (do your sales increase enough to cover and exceed the extra added cost?).

Oh, and you can use the returned non-defective products as prizes for drawings and competitions that you run on your site, as bonuses for extra orders, or as gifts to your best customers. You can even offer these products to influential publications/blogs in your industry to give to their customers, in exchange for a link back, review and/or cover story, or barter them for other products/services that you might need. Your options are practically limitless.