If it doesn't work for your items or category don't use it. I had about a 0.1% return rate... so I tried some items with 60 day free returns. I have more returns now... of course, I figured I would. But if it is a category I don't want returns (I avoid high return categories anyway), or heavy - requires priority shipping or whatever I use a different return policy.... if it is light weight and not expensive I use 60 day free returns.... haven't stressed about it..... do what makes sense. Unless you are selling 10K+ a month how much is the 10% discount anyway... very little - about $10 discount on $1000 of sales?
For many people they would save more in costs just by not having 1 day handling or avoiding one return. Saw someone complaining vociferously in another thread awhile back, their sales were less than $400.... that is less than $40 in FVFs, and less than $4 in discount....
The problem I have is eBay says they will start taking return rates into account for visibility... why should my return rate be compared to a seller with no returns or 15 day or even 30 buyer pays shipping? So if you are inclined to not use 30 day free returns and you have a lower return rate than your competitors you may actually get enhanced visibility..... another way to make up the loss of the 10% discount.... and another thing to concider.
So as a great 20th century philosopher said,"Don't worry about a thing, 'cause every little thing gonna be alright"
