Difference between a warranty, returns policy, and money back guarantee

Is a "Warranty", "Returns Policy", and "Money back Guarantee" all the same thing, i just created my policy on returning an item, and was going to call it a warranty, but I don't know, my policy can be viewed here http://www.shopperscircuit.com/servlet/the-template/ebaywarrantypopup/Page

 

Nope

A returns policy is the over all thing that covers how and when things can be returned and what action the person will expect to receive

A money back guarantee policy would be a statement of when you will give a full refund. Common understanding would mean that this is beyond just if the item is faulty beyond repair. This technically would form part of the returns policy but if it is better than your competitors is worth calling out as a separate item too.

A warranty is specific about what happens if the item develops a fault within the defined timescale. Again can form part of the returns policy however if it is better than average then most will call it out separately again

 

My understanding about a warranty is that it does not provide you the option to return the protect but the vendor may either repair or replace the faulty item in question. The term 'warranty' and 'guarantee' may be used interchangeably.

http://en.wikipedia.org/wiki/Warranty

A Money Back Guarantee would offer your customer an unconditional right to return the product without question if they are not satisfied with the item. Usually there is a limited time frame in which they would need to return the product. There does not necessary need to be a fault with the item.

http://en.wikipedia.org/wiki/Money_back_guarantee

 

thanks for the responses; yea i see a money back guarantee more for offering services, software, and such, and not necessarily for physical goods, which i offer, i ended up calling my policy "Shoppers Circuit 30 Day Warranty and Return Policy"

 

Need to check your local laws, in the UK for example, with the exception of 2nd hand items, you have a statutory 12 month warranty on the item so advertising a 30 day one would certainly be very poor and also potentially illegal as you cannot remove statutory rights only improve on them.

Money back applies to physical goods as much as anything else.

 

does this apply to used, refurbished, and OEM products, or does it only apply to Brand New items; most manufacturers have their own warranty, we're adding a 30 day so they wouldnt have to deal directly with the manufacturer

 

In the UK at least the contract of sale is with the vendor not the manufacturer and therefore the consumer has the legal right to pursue either the shop or the maker in the first year as they choose. Subject to the stores contract with their suppliers they may be liable for handling it themselves completely or alternatively the manufacture/ supplier has to pay for the actual repairs/ replacements however the store has to provide the man hours of dealing with the customer and any costs associated with returning items etc.

Used and refurbished are excluded as they are second hand - as long as they are described as such at point of sale. I am not certain with OEM but would strongly suspect the normal laws apply as new items but you are less likely to have redress against the supplier.

 

Well, the Money Back Guarantee can be offered to physical goods too. That's what shops in the US are doing anyways. You can buy something, use it for 30 days and if you do not think it is what you need, you can return it based on the Return Policy and get back your money. You may get all your money back as it is or you just need to pay a restocking fee.

One example is Camera World

http://www.cameraworld.com/help/shopping/Shopping.htm?bct=sCameraWorld.com+Customer+Service#anchor10

For camera, you need to return within 10 days. If you return it just because you don't want it, you need to pay a restocking fee otherwise it is free. The above link is the refund policy which you can claim.

 

wat would keep ppl from defecting the item to avoid paying the re-stocking fee, that'll cost u more, since u won't be able to re-sell it

i sell digital media as well, like pc games, video games, software, and dvds, i dont think it be a wise choice to offer a money back gurantee, since it'll allow ppl to steal key codes, and copy the media to a burnt disk

thanks for clearing up what a money back gurantee is

 

Well, there is nothing to stop anyone from doing it. Somehow it seems like the western culture to provide the money back guarantee. It appears that the system can be easily abused, for example you could 'buy' a digital camera from the local store, use it for 30 days and return it. I remember watching the documentary of sort show 'My Date with Drew' where the producer did that very thing and got his money back after the 30 days is up and owe nothing.

However, generally people are honest about it.