Refunds happen to every business and no business likes to do refunds but it’s important that you do handle refund requests with high priority.

Recently (around three to four weeks ago) I purchased products online from reputable online stores, however I never received the products for whatever the reason.

This experience lead me to write this article. From a customer’s perspective it was a very terrible one. Here’s some things we do when processing refunds at Yoohoo Plugins.

Don’t Ask Too Many Questions

When a customer wants a refund you may need to find out why they would like a refund and this gives you the opportunity to possibly save the customer and avoid a refund.

With that being said, don’t ask too many questions. Find out the reason why and if you can resolve the issue offer the solution to the customer. If they are still not satisfied, process the refund immediately. Don’t try to persuade the customer further to stick around.

I would suggest in asking only one question if you feel the customer would be open to responding. Otherwise, just refund the customer immediately and then ask what’s not working for them. They might be more open to answering if you refund first then ask questions later. This is tricky and takes trial and error to get right.

Act Swiftly

Prioritize any refund requests your business gets. There’s nothing worse than waiting 2-4 weeks for a simple refund from a business.

Follow Up With The Customer

Following up with the customer to ensure that the process of their refund is being looked into. Especially for businesses that may sell physical products that requires the customer to send the product back. Keep your customer updated along the journey.

Denial Of Refunds

Consider Offering a 100% money-back guarantee, like we do, on all purchases within 30 days. We often refund customers after the 30 day period and we are fairly lenient when it comes to refunds but this may not work for your business. (In terms of supplier return policies etc.)

If in anyway the refund request is out of your policy or the customer has voided the returns/refund policy. You have every right to deny the user a refund, do this in a professional and friendly manner. Remember they are a customer after-all.

Why Handling Refunds Are Important

If you handle refunds in a swiftly professional manner, this gives confidence to customers for future purchases. Maybe the customer just purchased the wrong product and a few months later will purchase the right product. Rather refund $20 now than have a customer bad-mouthing your business to all their friends and family and lose even more customers (that you didn’t have).

Have Empathy

Try to be understanding where the customer is coming from. Maybe they’re just frustrated because of other bad service from another company or they are just having a bad day. Just remember the feeling next time you’re trying to get your hard earned money back and it’s difficult to get back. Don’t be that business.

If you have a great product and service you won’t be handing out that many refunds, and customers will continue to support you and even bring in further business.


Refunds will happen for every business and you are losing some money. As long as your refund-rate vs revenue stays low enough (well under 10%, should be okay) and your business grows naturally over time, you should be fine and have a sustainable business.

Photo by Todd Diemer on Unsplash