Point of Sale (POS) Glossary
A return is when a customer brings or sends an item back to a merchant. Depending on store policies and negotiation with the buyer, a retailer may offer a refund, store credit, or exchange for another item. Store policies are often posted near the register, on the point of sale receipts, and on an eCommerce website.
Depending on store policies and the reasons for the return, merchants may charge a restocking fee. This restocking fee may offset the cost of returning the item to a salable state or the reduced value of an open box item. Defective items are usually not subject to restocking fees. However, instances of buyer’s remorse, incorrect size, and other stated reasons might incur a 15%-20% fee, which can be programmed into a POS system to facilitate the return.
As a savvy small or medium-sized business owner, you know that you can’t outsell the giant mega-store. You build your customer base because you provide excellent service, an enjoyable shopping experience, and a fantastic value.