Business Advice Handling Customer Complaints in an Online Business
Every online business gets complaints sooner or later. A parcel arrives broken. A service falls short of what the customer expected. How you respond in the first few hours often decides whether that person buys from you again.
A complaint can feel like a setback, yet it is also useful information. The federal business.gov.au guide points out that most unhappy customers never complain at all. They simply stop buying from you. So the people who do speak up are giving you a chance to fix the problem and keep them.
Why a written complaints process helps
The business.gov.au guide to handling customer complaints suggests a written procedure that every staff member can reach and understand. It also says you should make it easy for customers to complain or give feedback. On a website, that usually means a clear contact page and an obvious way to report a problem with an order. If a customer has to hunt for it, their frustration grows before you even hear from them.
Clear contact details are a basic part of good site design. The same thinking applies in professional services, as these web design features for family lawyers show. People want to know how to reach you and what will happen next. Spell out how complaints are received and roughly when you will reply.
The six steps from the government guide
The business.gov.au page lays out six steps you can use as the base of your own procedure. They are simple, but writing them down makes them easier to follow under pressure. Here they are in brief.
- Listen to the customer so they feel heard.
- Keep records, including any promise or agreement you make.
- Ask for documents such as a receipt or a photo of a faulty item.
- Know your legal obligations under the Australian Consumer Law.
- Follow up once the problem is solved and ask for feedback.
- Know your state or territory consumer protection agency.
Listening and keeping records
Online complaints usually arrive in writing, which makes listening a little different. Read the whole message before replying. Repeat the main problem back in your answer so the customer knows you understood it. Then write down what you have offered and when you said you would act.
Those notes matter more than many owners expect. The guide says recording promises and agreements helps prevent disputes and mix ups later. Keep the notes with the order details in your store system or inbox. If another person picks up the case, they can see exactly where things stand.
Asking for documents
For faulty goods, a photo and the order number tell you a lot. The guide notes that documents can help you understand the issue and comply with laws or industry codes. They can also help you improve your processes and train staff. Ask politely and explain why you need them, so the request does not sound like a stalling tactic.
Know what the law already requires
The Australian Consumer Law sets out the rights consumers have when they buy goods or services. The business.gov.au guide says it is one of the laws your business must follow. Its consumer guarantees decide what remedy a customer can expect when something goes wrong. Knowing the basics stops you from promising too little or too much.
The ACCC explains that the remedy depends on whether the problem is major or minor. A major problem includes a product that is unsafe or very different from its description. It also covers a product that cannot be used for its normal purpose and cannot easily be fixed in a reasonable time. For a major problem, the business must let the customer choose a refund or a replacement.
For a minor problem, the business must fix the problem or repair the product for free. If the business cannot or will not repair it, the customer has other options. They can have it fixed elsewhere and claim the reasonable cost from the business, or take a refund or replacement. The ACCC sets this out on its repair, replace, refund or cancel page for businesses.
Refunds and return costs
According to the ACCC, a refund should be the full amount the consumer paid. You must not take money off to account for how much the customer used the product. Refunds should go back the same way the customer paid, unless you both agree otherwise. This is worth knowing before you reply with a store credit offer.
Return postage often causes friction in online sales. The ACCC says that if a fault is confirmed, the business must pay back any reasonable return costs the customer has paid. For faulty items that are large, heavy or hard to remove, such as installed appliances, the business pays to collect them. If no fault is found, you may charge for collection and inspection, but you must give a reasonable estimate first.
Things you cannot say
Some replies can land a business in trouble. The ACCC says it is illegal to rely on policies such as “no refunds” or “no refunds or exchanges on sale items” to deny these rights. You also must not tell customers to take a problem to the manufacturer or importer. The customer bought from you, so the complaint is yours to handle.
Change of mind is different. The ACCC notes that customers who simply changed their mind are not entitled to a remedy under the consumer guarantees. However, if your business has a change of mind policy, you must follow it. Make sure the policy on your website matches what you actually do.
Following up and learning from complaints
Once the problem is fixed, check back with the customer. The guide recommends confirming they are satisfied and asking how they found your process. Act on that feedback where you can. Customers notice when a business listens and makes changes.
A short follow up email works well for most online stores. Keep it personal and plain, not a sales pitch. If you already send newsletters, the ideas in this piece on email marketing for wills lawyers about staying in touch apply here too. Just keep the follow up about the complaint and save offers for another time.
Look for patterns across complaints every month or so. If the same product keeps failing, talk to your supplier. If delivery questions keep coming up, add clearer information to your product pages. Each fix cuts down future complaints and saves you time.
A business that handles problems well tends to earn a better name over time. Satisfied customers talk about you, and some may mention you online. That kind of goodwill also supports the slower work of building backlinks to your website. Neither replaces the other, but both depend on people trusting you.
When a complaint goes further
Sometimes you cannot reach an agreement with a customer. The business.gov.au guide notes that customers can lodge complaints about your business with their state or territory consumer protection agency. Examples include NSW Fair Trading, Consumer Affairs Victoria and the Office of Fair Trading in Queensland. You can contact your local agency to learn what you must do when a complaint is made.
Changes inside your business can also cause complaints when customers are left in the dark. If you move premises, update your address and contact details everywhere customers might look. Planning an office relocation that goes smoothly helps keep orders and replies on track while you move. Tell regular customers ahead of time so nothing slips through.
Frequently asked questions
Do I have to give a refund if a customer changes their mind?
Under the consumer guarantees, customers who simply change their mind are not entitled to a remedy. If you publish a change of mind policy, though, the ACCC says you must follow it. Decide carefully before you promise one.
Can I ask for proof of purchase?
Yes. The ACCC says a business may ask for proof of purchase, such as a receipt. For online orders, an order number or confirmation email is a simple thing to ask for.
Does the product have to be in its original packaging?
No. The ACCC states that the product does not have to be in its original packaging. Ask for photos or the item itself instead, so you can check the fault.
Who decides between a refund and a replacement?
For a major problem with a product, the customer chooses between a refund and a replacement. For a minor problem, the business can repair it first. The ACCC page explains both cases in more detail.
This article is general information only and is not legal advice. Consumer laws and the agencies that handle complaints can differ between states and territories, and they can change. Speak with a qualified lawyer or your state or territory consumer protection agency about your own situation.
Every online business gets complaints sooner or later. A parcel arrives broken. A service falls short of what the customer expected. How you respond in the first few hours often decides whether that person buys from you again.
A complaint can feel like a setback, yet it is also useful information. The federal business.gov.au guide points out that most unhappy customers never complain at all. They simply stop buying from you. So the people who do speak up are giving you a chance to fix the problem and keep them.
Why a written complaints process helps
The business.gov.au guide to handling customer complaints suggests a written procedure that every staff member can reach and understand. It also says you should make it easy for customers to complain or give feedback. On a website, that usually means a clear contact page and an obvious way to report a problem with an order. If a customer has to hunt for it, their frustration grows before you even hear from them.
Clear contact details are a basic part of good site design. The same thinking applies in professional services, as these web design features for family lawyers show. People want to know how to reach you and what will happen next. Spell out how complaints are received and roughly when you will reply.
The six steps from the government guide
The business.gov.au page lays out six steps you can use as the base of your own procedure. They are simple, but writing them down makes them easier to follow under pressure. Here they are in brief.
- Listen to the customer so they feel heard.
- Keep records, including any promise or agreement you make.
- Ask for documents such as a receipt or a photo of a faulty item.
- Know your legal obligations under the Australian Consumer Law.
- Follow up once the problem is solved and ask for feedback.
- Know your state or territory consumer protection agency.
Listening and keeping records
Online complaints usually arrive in writing, which makes listening a little different. Read the whole message before replying. Repeat the main problem back in your answer so the customer knows you understood it. Then write down what you have offered and when you said you would act.
Those notes matter more than many owners expect. The guide says recording promises and agreements helps prevent disputes and mix ups later. Keep the notes with the order details in your store system or inbox. If another person picks up the case, they can see exactly where things stand.
Asking for documents
For faulty goods, a photo and the order number tell you a lot. The guide notes that documents can help you understand the issue and comply with laws or industry codes. They can also help you improve your processes and train staff. Ask politely and explain why you need them, so the request does not sound like a stalling tactic.
Know what the law already requires
The Australian Consumer Law sets out the rights consumers have when they buy goods or services. The business.gov.au guide says it is one of the laws your business must follow. Its consumer guarantees decide what remedy a customer can expect when something goes wrong. Knowing the basics stops you from promising too little or too much.
The ACCC explains that the remedy depends on whether the problem is major or minor. A major problem includes a product that is unsafe or very different from its description. It also covers a product that cannot be used for its normal purpose and cannot easily be fixed in a reasonable time. For a major problem, the business must let the customer choose a refund or a replacement.
For a minor problem, the business must fix the problem or repair the product for free. If the business cannot or will not repair it, the customer has other options. They can have it fixed elsewhere and claim the reasonable cost from the business, or take a refund or replacement. The ACCC sets this out on its repair, replace, refund or cancel page for businesses.
Refunds and return costs
According to the ACCC, a refund should be the full amount the consumer paid. You must not take money off to account for how much the customer used the product. Refunds should go back the same way the customer paid, unless you both agree otherwise. This is worth knowing before you reply with a store credit offer.
Return postage often causes friction in online sales. The ACCC says that if a fault is confirmed, the business must pay back any reasonable return costs the customer has paid. For faulty items that are large, heavy or hard to remove, such as installed appliances, the business pays to collect them. If no fault is found, you may charge for collection and inspection, but you must give a reasonable estimate first.
Things you cannot say
Some replies can land a business in trouble. The ACCC says it is illegal to rely on policies such as “no refunds” or “no refunds or exchanges on sale items” to deny these rights. You also must not tell customers to take a problem to the manufacturer or importer. The customer bought from you, so the complaint is yours to handle.
Change of mind is different. The ACCC notes that customers who simply changed their mind are not entitled to a remedy under the consumer guarantees. However, if your business has a change of mind policy, you must follow it. Make sure the policy on your website matches what you actually do.
Following up and learning from complaints
Once the problem is fixed, check back with the customer. The guide recommends confirming they are satisfied and asking how they found your process. Act on that feedback where you can. Customers notice when a business listens and makes changes.
A short follow up email works well for most online stores. Keep it personal and plain, not a sales pitch. If you already send newsletters, the ideas in this piece on email marketing for wills lawyers about staying in touch apply here too. Just keep the follow up about the complaint and save offers for another time.
Look for patterns across complaints every month or so. If the same product keeps failing, talk to your supplier. If delivery questions keep coming up, add clearer information to your product pages. Each fix cuts down future complaints and saves you time.
A business that handles problems well tends to earn a better name over time. Satisfied customers talk about you, and some may mention you online. That kind of goodwill also supports the slower work of building backlinks to your website. Neither replaces the other, but both depend on people trusting you.
When a complaint goes further
Sometimes you cannot reach an agreement with a customer. The business.gov.au guide notes that customers can lodge complaints about your business with their state or territory consumer protection agency. Examples include NSW Fair Trading, Consumer Affairs Victoria and the Office of Fair Trading in Queensland. You can contact your local agency to learn what you must do when a complaint is made.
Changes inside your business can also cause complaints when customers are left in the dark. If you move premises, update your address and contact details everywhere customers might look. Planning an office relocation that goes smoothly helps keep orders and replies on track while you move. Tell regular customers ahead of time so nothing slips through.
Frequently asked questions
Do I have to give a refund if a customer changes their mind?
Under the consumer guarantees, customers who simply change their mind are not entitled to a remedy. If you publish a change of mind policy, though, the ACCC says you must follow it. Decide carefully before you promise one.
Can I ask for proof of purchase?
Yes. The ACCC says a business may ask for proof of purchase, such as a receipt. For online orders, an order number or confirmation email is a simple thing to ask for.
Does the product have to be in its original packaging?
No. The ACCC states that the product does not have to be in its original packaging. Ask for photos or the item itself instead, so you can check the fault.
Who decides between a refund and a replacement?
For a major problem with a product, the customer chooses between a refund and a replacement. For a minor problem, the business can repair it first. The ACCC page explains both cases in more detail.
This article is general information only and is not legal advice. Consumer laws and the agencies that handle complaints can differ between states and territories, and they can change. Speak with a qualified lawyer or your state or territory consumer protection agency about your own situation.