With the heavy Christmas shopping period almost upon us and the Boxing Day and New Year sales following soon after, retailers need to be prepared to provide their customers with a high level of service in a knowledgeable and efficient manner.
Online shopping and subsequently online returns are growing each holiday season. IMRG reports an estimated £4.6bn will be spent online during the peak shopping weeks commencing the 3rd and 10th of December. This number is forecast to exceed 2011’s spending in the same period by 15%.
This growth of online shoppers means higher sales, but also more returns and potential issues.
The Office of Fair Trading (OFT) is working with industry leaders, such as IMRG, to guide and advise retailers on their obligations as online retailers.
Website
When a customer arrives on your site it is crucial that you provide upfront transparency about their rights and provide required information about you and your business clearly. Check your website complies with the following advice to make sure you are meeting key legal obligations and your customers are getting the best possible shopping experience:
• provide a full geographic address and a proper email contact address
• flag compulsory charges early in the buying process
• clearly explain cancellation rights
• clearly explain you offer a full refund including refund of original delivery charges if your customer cancels
Delivery
One of the key areas where online retailers experience issues are deliveries. Custom goods, shipping, pricing and oversized goods can all create particular challenges for an online retailer. Implementing the following hints can help you manage these problems and help ensure you meet consumers’ rights.
• Be aware your customers could make specific requests relating to delivery timescales when they order, particularly over the holidays. If these requests cannot be met, this must be clearly explained and an alternative delivery date agreed. This and any other alterations to standard terms should be recorded at the point of sale
• Although your terms and conditions may clearly state an estimated delivery period, if this is exceeded your customer may have the right to cancel
• If there is likely to be a significant delay, inform your customer as soon as possible – consumers may be willing to wait if you make them aware of the delay, but if not, they could have the right to cancel the order
• Remember it is your customer’s responsibility to check that the product will work for its intended use, but you should clearly display adequate and accurate measurements and product descriptions to give your customers the information they need to determine whether the product is suitable for their needs
Returns and refunds
Over 1000 customers who were eligible for a refund on an item purchased online reported that retailers failed to grant it, according to Citizens Advice (Nov11-Jan12). Make sure you’re in the right when it comes to refunds:
• You should refund a customer’s money as soon as possible after they cancel an order, and in any case, within 30 days at the latest
• You must refund the customer’s money even if you have not yet collected the goods or had them returned to you by the customer
• Even if the customer fails to take reasonable care of the goods, you must make a full refund. (You can bring a claim for damages separately)
You have to refund the:
• full price of the goods
• or deposit or prepayment made
• cost of delivery
How the OFT can help further
Familiarising yourself, your staff and your customers with the relevant consumer laws will help ensure you are on the right side of the law and treating customers fairly.
The OFT’s Distance Selling and SOGA hubs provide materials and resources which will help you and your staff understand everything you need to know to in order to comply with the law.
OFT’s training materials are a key tool for training your staff, making them informed and aware of consumer rights and increasing their confidence when dealing with customers over the phone or online. Once they’ve mastered the training materials, you could test their knowledge with a Quick Quiz.
Make sure your Christmas season is a cracker! Visit and register on the Distance Selling Hub today.
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