The erratic weather, the holidays, and post-holiday sales may have sent you into an online shopping frenzy during the past several months. But was everything up to your expectations? Are you cringing at some of your purchases now? Are you wishing that perhaps you hadn’t been so excited about 50% off something that you didn’t really need or want?

You may have been raised in a home where “we don’t return things.” I understand that, but we are now in an era where so much shopping is done online that it is a normal part of business. If you have returned merchandise in the past, you may realize that it would help to have a system in place. Having a well-thought-out strategy will motivate you to return undesirable things as soon as possible and then monitor the credit card or bank account reimbursement. This last step is critical, because returning merchandise is like having after-tax earned income.

If it’s useful, the following is a system that I developed over the years to help me track online purchases, return merchandise efficiently, and then monitor the refund. 

Step 1: Know the Refund Policy Before You Buy It.

Some online companies make it easy, generally through policies of “free shipping on returns” or, in some cases, providing a shipping label with a modest deduction off your return. However, if an item is marked “final sale,” then I recommend that you decide in advance that if it doesn’t work, it will be donated to charity. 

Step 2: Use the Store App to Track or Make a List of Your Purchases and Track Arrivals

If you have a busy household to tend to, it can easily slip your mind that you even placed an order. More importantly, another person in the house may pick up your package from the back door, and you don’t even realize it has arrived. Of course, most stores have apps that make this step easy. However, if you have multiple stores and many purchases in a short period of time, I recommend going old school and making a list or a spreadsheet. By having a list, you can check off what has been delivered versus those items that are still missing.

Step 3: Carefully Open and Preserve as Much Packaging as Possible

I learned this from a friend who was a master at returning things. He often ordered electronic gadgets to test them out, and if they didn’t work, he would always return them. He was always careful to cut plastic with an X-ACTO knife, and kept all tissue paper and other packaging perfectly intact. Then he wrapped everything back up perfectly and precisely. He always wanted to ensure that the product would be accepted for return.

Step 4: Always Get a “Drop Off” Receipt!

I am fastidious about getting a drop-off receipt from the post office, UPS, FedEx, or other carrier, because I know that is the only way to prove that I made the return. Years ago, I had a big return with an online shoe retailer, and never had the refund come through. I contacted them after a few months with my drop-off receipt, and they were able to track the package, and ultimately refund my return. They were quite embarrassed because they prided themselves on their technology. They ultimately provided me coupons to use on future purchases—which worked to win me back as a customer and I still use them to this day. However, this was the event that made me realize the importance not only of the drop-off receipt, but also of having a system in place. 

Step 5: Record the Refund as a “Receivable” in your PlanFirst! Or Other Tracking Software

I consider refunds to be like “money in the bank,”, I have accounts in my PlanFirst! System for tracking refunds. I simply set up a manual cash account. I title the account with the name of the merchant from which I am expecting a refund and the amount.

Step 6: Monitor for the Refund 

I have set up all my credit cards and bank accounts using the PlanFirst! Software (also known as eMoney, which is owned by Fidelity). This helps me to easily monitor my returns and eventually delete or zero out the cash account I set up in step 5. 

While this system may seem detailed, it has worked well over the years, and I highly recommend it for anyone who needs a bit of help managing returns.

The benefit of this system is the peace of mind you will have regarding incoming and outgoing packages and purchases. It doesn’t take away the hassle of returns, but it will give you a greater sense of control when you can monitor and make sure you are properly credited for your returns. 

Kristina Bolhouse, CPA/PFS, CFP®

Vice President/Shareholder

© 2024 Kristina Bolhouse and The Arkansas Financial Group, Inc., All rights reserved.

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