Return Policies

I've been thinking about online return policies. Originally when I set up my Etsy shop I had a fairly strict return policy. After I spent some time thinking about it I changed it. I now accept returns no matter what. I realize that may seem a little foolhardy to some but I have not had anyone want to return anything so far, even on Ebay, where I've been selling for nearly 10 years, I have received minimal returns.

From a seller's point of view taking back all items may seem risky, but look at it from a buyer's point of view. We, as sellers, are asking them to trust us, trust that the item is what we say it is, trust that it is handmade, trust that it is made well, trust that it won't fall apart, trust that we will actually send it. That's an awful lot of trust for a complete stranger. I believe we need to trust that our buyers won't try to take advantage of our return policies. I think that is only fair. I take a lot of pride in my work. I would be devastated if something I made, that a customer was excited and happy to purchase, fell apart. I take every precaution to make sure that won't happen. I try to convey that to my potential customers in several ways, one of which is having a buyer friendly return policy.

What do you think? Should return policies be strict or more lenient? What kind of return policy do you have for your shop?