Money Back Guarantee

Aloha,

Is it necessary to give your customers a money back guarantee?

I'm building a new online shop selling immaterial stuff (ebooks, etc.). I will probably offer some kind of money back guarantee, for example 30 days.

Is this necessary in order to sell a lot or can I do without it?

And how to handle affiliate payments if I implement the 30 day money back guarantee? I'm a bit afraid that someone makes a scam and buy 100+ ebooks, earn a lot of affiliate income and then cancel all the orders within 30 days.

Thank you,
Mads

 

if they cancel the orders they lose their commission...

 

You can always try if, it is a new business, once you have established yourself, with good feedbacks and satisfied clients, there is no need for giving any money back guarantee.

 

If you are serious about your business and your product you should give some sort of guarantee. You want to build trust with your customers so they can refer you to others and come back for more.

 

Uhm i wouldnt recommend it for ebooks unless your selling so many of them you wont mind giving one out of 10 their money back... a lot of people will abuse the system.. for sure.

 

not needed, in case they find something out of their way they will come back to you for refunds, generally users like reading books and to mention as you will refund the money back wont look so professional in a book sales site.

 

Refund is not required, but people like to know if there's an option to get their money back.
For affiliates, you must consider paying them after 1 month, or whatever your refund period is, so if there's a refund, you can deduct the commission earned from the affiliates account also.
Bye

 

It's better to offer one at the start of a business, then perhaps the odd when it's been established if the customer complains/unhappy.

 

Actually the use of money back guarantee is a marketing ploy that has been around for years.

The reason people offer money back is to build secure feelings with the customer.. The customer is assured if something is wrong they can return it so then they are more willing to spend their money with you.

Now stats have shown that the money back guarantee is never used 95% of the time......so you are looking at 1 in 20 returning possibly.

So you can actually increase sales by offering a guaranteee or warranty of any type...

Another way to maximize revenues was added to the ploy for those who do return merchandise there is now "restocking charges" that are applied to the return of merchandise and this seems to average 15% of the purchase price

In other words if I want to return a $1,000.00 Television, the seller will charge me $150.00 to return it....

Now thats marketing power.

Hope this helps....

 

If you're in the US and running a business (ie selling things) you are goverend by US law and are required to offer at least a 30 day warranty. I don't know that you have to advertise that, but you must support it. If you want to be unethical, you could probably get away without it (for a while.)

Like Sem Advance said, it's great marketing. Statistically speaking, few people ever request refunds. If you're using PayPal or Clickbank, it's very easy to handle refunds, too.

The longer the refund period, the easier it is to forget about it, since the customer doesn't have to hurry and figure out if they want to keep it. So you may even want to offer a 30 year warranty instead.

 

Some good ideas here and i think the money back is good too but people could have keep the ebook and ask for a refund.You cant ensure that person will delete the ebook off their pc.

 

The guarantee is a last ditch effort to convert the visitor. It takes all the risk
off them, and hopefully convinces them that they can't lose by buying your
product. Very few people will actually attempt to abuse your offer.