The return policies of online companies vary widely. While some e-commerce websites include no limits on returns and makes it easy to get the cash back, others have strict requirements and offer only a few days for refunds.

The best return policies will provide you with multiple methods for returns, as well as options for store credit if you don’t meet the return criteria. We reviewed 10 popular retailers’ return policies with store credit opportunities to help you build strong refund management and motivate clients to buy more.

Store Credit for E-commerce: Best Practices

Store credit enables you to make the return policy more customer friendly by expanding it to a longer timeframe. This also helps you keep money within your business and ease the burden of returns on your bottom line. So, check out the online stores that take advantage of the store credit option by implementing it into their business strategy:

#1 Kohl’s 

Kohl’s has earned its reputation for “hassle-free’ returns. The company has no receipts required on the purchases. If you didn’t obtain a receipt, the refund will be issued in the form of Kohl’s Merchandise Credit based on the lowest discounted 13-week sale price of the items.

Also, you can benefit from promotional store credit options. For instance, Kohl’s tries to engage more clients with the “Earn Kohl’s Cash” option. Everyone who spends $50 can automatically earn an additional $10. In other words, the more you spend, the more you earn.

#2 Walmart

Another example of store credit is represented on the Walmart website. The company offers 3 different methods of return for in-store purchases without a receipt. Aside from exchange and repair options, you can choose to receive a refund in the form of a Walmart gift card. As a result, your clients purchase more items, and money stays within the company.

#3 Sephora

Beauty lovers can also benefit from a so-called “relaxed approach” to returns provided by Sephora. The company provides you with full refunds on items returned within 30 days. In case you happen to wait longer and send the product by mail, you can get online store credit for returns made within 31 to 60 days of the purchase date. In this way, you can redeem the store credit at Sephora.com. Note that some payment methods may not offer refunds in the original form of payment, instead you’ll get store credits.

#4 Bath & Body Works 

This retailer offers a similar return opportunity. It says that returns with the original receipt are allowed within 90 days of the purchase date for a full refund. After 90 days, refunds are issued as merchandise credit. However, in case they lose the paperwork, there is an opportunity to return up to $250 within 90 days at selected US stores. The merchandise and exchange credit can be issued in accordance with the lowest selling price of the product.

#5 The Home Depot

Another great example of store credit for e-commerce websites is The Home Depot store. The company accepts plants within 90 days of the purchase, but there are exceptions. When it comes to perennials, trees, roses, and shrubs, the store offers a 1-year guarantee and can be returned for store credit. It serves as an excellent example of how store credit can be effectively implemented in various types of businesses.

#6 Abercrombie & Fitch

Merchandise in the original condition can be returned or exchanged within 60 days. After that period of time, you can only get store credit. If you want to return an item without a receipt, you can receive store credit based on the lowest historical selling price by providing your ID.

#7 ULTA Beauty 

The company allows you to return the products within 30 days with an original form of payment, if you have a proof (e.g., receipt, packing slip, or verification in their system). If issued later till 60 days from purchase date, you will receive an Ulta Beauty electronic gift card.  If you make a purchase online with a payment service like PayPal, the refund goes to your preferred credit/debit cards or issued as in-store credit.

Also, ULTA is interested in providing the best service for customers, so it offers an extended holiday return policy. It means that purchases made between November 1, 2024, and December 31, 2024, are eligible for return until January 31, 2025.

#8 Showpo 

In terms of the return policy of this retail store, products must be returned in their original condition within 7 days of receipt to receive a refund. If a return is initiated within 21 days, your refund will be in the form of store credit that is valid for 12 months.

#9 Barnes & Noble

Ecommerce store credit is a popular method of return policy not only in the clothes and beauty industries; online bookstores also offer this option.

The store ensures the refund to the original form of payment, either it is credit card, debit card or mobile payment. However, if the customers complete payment with PayPal, they get a refund in the form of Barnes & Noble Gift Card or in-store credit. Moreover, customers should consider that textbooks allow only for store credit refunds.

This example of store credit usage may come in handy for online bookstores that require a slightly different refund approach. Therefore, implementing Barnes & Noble strategy can secure both customers and the store itself from unfavorable situations.

#10 MTG Mint Card

Regarding the board gaming industry, store credit is a popular way to attract more customers. MTG Mint Card gives you an opportunity to obtain a store credit rebate for future purchases. The amount of credit depends on how much you spend previously. For instance, if you spend from $200 to $499.99, you get 1% store credit for your next purchase.

By and large, store credit is one of the great ways to add flexibility and leniency to your return policy, especially if you’re running a Magento 2 online store. In this case, you can take advantage of the Magento 2 Store Credit Extension to save the time and effort of implementing store credit functionality into your business strategy. The plugin offers you effortless store credit management, automated refunds to store credit, seamless integration with Magento 2 RMA extension, and much more. If you want to check the module in action, try out a free demo and visit documentation for useful insights.

Final Words 

Today, more and more shopping is happening online, so an efficient return policy has become essential for your business success.  When you can’t try or examine a product you are purchasing, it is important to know that you have options beyond just taking the financial hit. Hopefully, the above-mentioned examples of store credit for e-commerce websites can help you build efficient success return policy and increase sales.