When selling on Etsy it’s important to know where the boundaries are, as well knowing what boundaries you can set with your customers.
The Etsy policy screen is where all of this happens, and whilst its clear how to configure most of the policies out of the box, some remain a bit of a mystery – specifically how to set a “no refunds” policy.
Can You Say “No Refunds” on Etsy? No, Etsy doesn’t allow you to set a “no refunds” policy in their policy editor. If you want to set a “no returns” policy and you are selling outside of the EU you must make this clear in your listings and all communication with your customers.
How Do You Set a “No Refunds” Policy On Etsy?
Whilst its not a core feature in the Etsy policy management section you can work around it to set a “no refunds” policy. To do this:
- login to your Etsy store and go to https://www.etsy.com/shop/YOUR_STORE_NAME/edit
- scroll down to “Frequently asked questions“
- Select “Add an FAQ“
- Select “Custom” for the question type
- You can now add an FAQ stating you do not accept refunds
- Click “Save“
I would also recommend adding this to the description of all of your listings in a prominent place, as well as in your “Thank you” message.
However, this may not be enforceable, and if a Case is raised against you by a customer asking for a refund Etsy may decide in favour of the customer.
The key here is to make it as clear as possible, so that you can say the customer was informed before purchase.
How Do You Politely Say “No Refunds” On Etsy?
The best way to politely tell a customer you won’t be giving them a refund is to be clear and concise. I recommend using introduction phrases such as “I have considered your request carefully” or “I understand your frustration”.
This shows you care about their issue. Finally be clear using a phrase such as “As per my refunds policy I won’t be issuing a refund”. Be sure to link to your polices and FAQ.
This way you may not prevent all follow up requests, but you will ensure you are both on the same page.
The Drawbacks Of a “No Refunds” Policy On Etsy
Whilst not accepting refunds has clear benefits, there are many drawbacks to it. These include:
- more customer service required – some customers won’t take no for an answer. This will lead to more back-and-forth
- more cases being opened against you – some customers will feel you are obliged to issue a refund. This will lead to an increase in cases opened against you. This in turn may have an effect on your search ranking, and opens the possibility of restrictions being added to your store
- it may be illegal – if you are selling in the EU then you MUST offer refunds and returns. This is a legal requirement
For some (me included) I issue refunds on all requests. It’s simpler, quicker and it just requires you to adjust your pricing to allow for a lost sale here and there.
It is not easy to set up a “no refunds” policy. Nor is it easy to enforce one. Whilst there are ways to add FAQs and messages to inform a customer, it may not be possible to have it set 100% of the time.
My recommendation is to not have a “no refunds” policy at all. There may be work arounds in other areas of your business, such as increasing prices, to allow for refunds to work.