Hassle a customer when he or she tries to return a purchase, and you'll likely lose a customer for good. On the other hand, there are situations where you may cut off a customer's returns privileges entirely.

To begin, put yourself in the mindset of your customers. They want to feel that they can return a purchase without having to jump over hurdles or feel intimidated. As soon as the process becomes cumbersome or complicated, you risk losing that customer.

Once you establish your guidelines and write up your policy, review and post it clearly near the cash register. You should also have an abbreviated version of the policy printed on your receipts.
It is important to have your employees stick to the policies. However, and this is very important, how your staff responds to customers making returns can win or lose many customers. Everyone needs to be as cordial as possible; tact and diplomacy should come into play.

You will also need to track returns on items sold via your Web site. Code the merchandise and maintain data on the buyer and date of purchase.