What exactly is a warranty? And why is it used by some business owners for their products to gain competitive advantage?Simply put, a warranty is a guarantee from the manufacturer or distributor of a certain product that in case of defects or malfunctions, this shall be replaced or repaired. It provides buyers a level of protection that assures them they will receive what they expect.Two Types of WarrantiesIt should be noted though that when a product is being sold in the market, it comes with an implied warranty that it is of good quality and in working condition. After all, no one in their right mind would buy a defective product. But, as a means to add value to their product, manufacturers are offering what is called an express warranty. This is most especially true for e-commerce entrepreneurs that because of the nature of online shopping, we attach this kind of warranty to our products.
Depending on your creativity and risk appetite, the coverage of warranties can be one or a mix of the following, among many others:Repair. You can provide this coverage to give your buyers an assurance that product defects can be rectified to make it work like new. The repairs can be done in the main factory or thru accredited service centers nearby.Replacement. When the product goes beyond repair, this can be resorted to. But, only if expressly provided in the warranty clause. This also covers replacement of spare parts or systems.Refunds and Returns. You have this covered to respond to unsatisfied customers who would rather have their money back. When all else fails, or if there is no potential for a repeat from this particular customer, then by all means, refund.Parts & Materials. This often goes hand in hand with repair or replacement specifically when spare parts or other materials are necessary. In some cases, you can limit your warranty scope to certain parts of the product. Say for example, you are selling a cooling system, so you can include a functional parts warranty that covers repair or replacement of compressors that is a crucial part of your cooling system. Warranty LimitsWhile thinking of what coverage or scope to express in your warranty, it would also be good to express what you will not cover. It will not be a grand idea to be all-out in your warranty program just to encourage purchases. You also need to protect yourself and your business. Here are some which we have gathered from different product warranty:Normal wear and tearImproper use of product and non-compliance to the prescribed operating and maintenance procedures.Abuse and use of the product for other than its intended purposeNegligence, tampering and unauthorized repairDamages caused by accidents, fire, flood or other acts of natureDevelopment of cracks/stains/rust in any part of the product that is a normal consequence of operation.Warranty PeriodWhat is also very important in a warranty is its validity period. You may wonder why there really is no standard period. Some goes for only a year while others have 5 or 10 years. Then, there are those who offer a lifetime warranty! So, what gives?
Essentially, it follows your product’s usable life. You are guaranteeing that your product can be free from manufacturer’s defects and can be used with little to no maintenance for a set period. After that, you cannot guarantee that it will work the same way as it was first purchased.
What can we gain from offering warranty?Image of Product Quality. A warranty would carve a perception in the buyers’ minds that our product is of high quality and we are assuring them that it really is.Reduced risk of product failure repercussions. The reason of failure of a product doesn’t always fall on the product itself and how it was manufactured. A great deal, almost always, is caused by negligent and improper use by the buyers. When we express the limits of our warranty then we also reduce the risk of exposing ourselves to potential invalid claims.Competitive advantage. We all know that you don’t have a monopoly of the market. You might be one of so many, selling the same product. Here’s where branding package comes in. Make sure your China fulfilment warehouse service proivder can cusomize shipping bags and shipping cartons for you as we do.
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