Free Returns

[plumbingspecials]

I had a conversation with an eBay rep yesterday who called me to tell me (once again) about the free returns program, and how this wonderful program can boost sales by 15 percent, according to some data that was most likely manipulated to get people to believe that sales = profits.

I feel really bad because by the end of the conversation, she was trembling, perhaps even in tears, and that was certainly not my intention. The poor girl was just doing the job she was hired to do, reading a script that she was told to read, and to try to convince Top Rated Sellers that it's okay to be extorted by eBay. I hope she did not take my feedback about eBay personally, but I really think it was her first day. I explained to her that this move by eBay is opening a whole new channel for thieves. Now they can search by "free returns" so they can target sellers who offer this program. Thieves know they can get items for free or for at least 50% off. There is no way a seller can make a profit with this strategy. There is no honor among thieves, and if eBay truly believes members are always honest, they are sadly optimistic. As it is now, most returns are FALSE SNAD cases (in other words, the buyer LIES to avoid shipping and restocking fees), so let's just make it easier for them by removing the step where they have to lie to return something for free (yep, that will make them honest!). The rep excitedly tells me that if the item is returned in any other condition than we sent it, we are allowed to keep 50% of the sale and refund only 50% instead of having to refund the full transaction. After four reports of buyers misuing the free returns system, eBay will give them warning. So they get to rip off at least FOUR sellers before eBay shuts them down.  (Yep, again that's keeping them honest!)

I reiterated to the rep that eBay is cheating us out of our TRS benefits by forcing us to take losses on our sales. If we do not conform to this ridiculously unprofitable policy, we do not get our benefits on those listings. So, If I sell an item for $1000, the buyer requests a return and sends back a box of rocks, I get to keep 50% of the sale IF I CAN PROVE that I sent out the correct item. I do not get a discount on my final value fees because it's only a partial refund, but hey, at least eBay put our TRS badge on that item.

So to put this in perspective:

I have a unit that I paid 700 for (because I am adistributor).

I sell the unit for $1000. I pay shipping $25. Buyer requests return, I pay another 25 plus call tagf fee of 16, so it costs 41 to bring it back. I receive a box of rocks, the buyer keeps the unit, and I get to keep half of the refund because the buyer didn't send back the same unit.  Here's what it looks like:

1000-100 (fvf)=900

900-25 (shipping)=875

875-700(cost of unit)=175

At this point I made a profit of 175 (sounds good, right?)

Oh but wait. The buyer requests a return (no reason is needed).

175 (what I initially made) - 41 (return shipping and call tag)=134

Buyer ships back box of rocks instead of a unit that I can re-sell.

134-500(partial refund for scam buyer)= -366

This transaction would cost ME $366 to receive something back other than what i sold.. Not sure how eBay expects people to sell here if we are not profitting or at least breaking even. 

I suppose the rep who called me NEVER SOLD A THING ON eBay! Because not one person who ever has, would agree that this is a "good" program for sellers. I think she realized that after I schooled her.

I still feel really bad though, because she honestly thought she was promoting a good program. 

[jeremberge-4]

So now free returns have been in place I have found that I need to require ebay to get an ok from me before auto approving a label perchace. This enables you to contact the buyer and maybe work something out and get them to retract their return or reason for return because that will now affect the seller as well. Returns have definitely increased but not by much. It is of HIGH risk to add seller pays for return on items that cost alot to ship and the item does not sell for much. Over all it has not affected things to much very slightly. Now, has it increaed sales? Well, thats another story. I have not seen that and if it has it may be one in two hundred items sold. But Ebays sales have consistantly gone down in most catagories over the past year. So how does that all add up? IDK  To sum everything up everything ebay does is to try an increase their revenue thus increasing mine hopefully. I have to trust they are doing the right thing but I have one nagging feeling I can't shake and that is the move towards a mor amazon like way of buying. Everyone knows ebay and ebay has generally been known as a place to get used item and collectables. This is ebays nitch and something is telling me they are not honing and focusing on this and trying to copy instead of innovate for what they already have. Ebay can never be Amazon it is to late for that. Be who you are and be good at what you do is my philosophy. But for now I just go with the flow, get annoyed at times but just move on because like ebay I am out to bring the green in my corner.

[mr_lincoln]

@darsdandydeals

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@darsdandydeals wrote:

And what kind of business are sellers/eBay gonna lose if and when we have to start charging tax on every purchase? 

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None because EVERY online venue will be doing the same thing ... keep in mind EVERYBODY is a Buyer so if you buy anything online you will be charged tax ...

[shopperclub]

You currently convinced me not to use "free return shipping." 

[mrrufusandmsladya]

My sales are down 74.9% from a year ago and I did not do as suggested.

[partsgalore1]

My sales are down a lot also...but not that much... 😞
I don't think it has anything to do with free returns.

[cfgdr]

You can opt out of eBay's Automatic Returns. I can't remember exactly where that was, under Account, then likely Return Preferences, or something like that. eBay made such a mess of the Automatic Returns, so happy to be back to dealing with returns ourselves.

[avid.auctions]

So we are 6-7 months into this "Free Shipping - Free Returns" and I realize, I chose not to offer it and I have not been hurt by it.  No biggie, now I ship things stamped at 50 Cents instead of $2.66  (yes that was before the major screwing of us by the post office and their new calculations on shipping).  But, I am not worried about shipping, tracking, negatives any longer - I am freer now that I have been in a long time.  I have had significant sales and for more money, than I had the prior 6 months.   Matter of fact, one of the small sales that would have cost me 3x's as much as I sold the item for if I offered free returns was denied by eBay, because I did NOT offer free shipping.  Someone took the item out, used it, then said they did not like it and wanted me to take it back.  I could not believe eBay worked for me, but only because I did not offer free shipping.  I then had another issue last month, similar situation, they bought a brand new item, used it put to much weight in the bag and then broke a wheel and wanted to return it.  Well, I now only offer 14 days (instead of 30 to return items) and it was no longer in the same new condition.  I explained this to the client and they did not attempt to return it.  You should understand, I don't want to screw folks.  I have had one negative since 1998.  I also work with people if I have made a mistake or an item shows up in lesser shape, but I am done letting eBay or any person take advantage of me.  So, consider removing the Free Returns and make yourself a little more money.   Let me know how it has worked for you?

[colonial*md]

I just received notice that an $7999 metal detector I sold is being returned because it is defective. I have never received a defective item return that didn't work when it arrived here. Which is why no one wants a replacement for a defective item.  This buyer has had it for 2 weeks, used it for 2 weeks and gets free round trip shipping.  I will receive a used detector that can no longer be sold as new.

I do use Free return shipping and the rep I spoke with said I don't have to give them a full refund if it is returned in a condition other than what was shipped.  That would be nice, but I have a feeling it won't work out that way. 

[kh-stanley1]

Hi everyone,

Due to the length of time that has passed since this thread began, we have locked it from future replies. If this is still an issue that warrants discussion, don't hesitate to begin a new thread here.

Thanks.