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Service Metrics Are Broken.
As a reminder, starting October 1, 2018, if you have very high rates of "item not as described" returns you may be subject to additional 4% final value fee in affected categories based on the Service Metrics policy. Maximum fee caps do not apply to the additional 4% final value fees. See our selling fees article for more information on how final value fees are calculated.
The rate is now 5% on the gross including shipping. After a review of our INAD returns we have no way to set goals to escape this. As we are compared against other sellers, this metric shows that we cannot calculate exactly how to improve. Ship more items? Just get better? There is no transparency on how this gets calculated. It's a moving metric. If we are paying the fee, have a solid 20 year sales record w eBay, we deserve clarity.
Secondly, buyers can easily select "item not has described" that guarantees a free return for them. Many know this. We offer free returns now to thwart some of these INAD - costing us more. Despite our best efforts we have been unable to covey to eBay with any success our side of each of these INAD. With the 5% rate calculated with shipping we are paying an even greater percentage of the sale. This is typical for final value fees as most credit card transactions would include shipping as well, but this not a FVF. It's costing us significantly. With 3,300 feedbacks, above standard level, a challenging market, we are really suffering a genuine impact.
We always side with our customers. We will gladly refund (even letting many keep the item) upon request. We track down any delayed shipments and provide solutions and communication eBay's competitors can't touch ( i.e. no refunds on Posh). We fill in item specifics and a clothing and shoe sellers measure every item in photos. We value customer service and we will continue to insure customer satisfaction at the highest level.
Lastly, with the growing list of additional fees that a suggested/required by eBay for promoted, free returns, promoted pay-per-click we are not sure that our business can sustain these fees. 5% on our gross is huge. This hurts sellers and again provides no clear path to improve and understand.
We are at 2.05% of sales as INAD returns. All of these returns were free. Every customer was given attention. This percentage is lower than any retail return stats we can find. Amazon is running up to 40% for example. See below.
Per Google:
The average return rate on Amazon fluctuates between 5% and 15%. However, in other categories, such as consumer electronics, apparel, and fine jewelry, the return rate can reach 40%. It's recommended to avoid some categories with high return rates.
Per Google:
On average, 12% of the products bought are returned – 12-18% in casual apparel, 15-20% in electronic goods, and around 35% in high fashion apparel
Answers?
eBay - start with showing me exactly what we need to do to get out of this and get rid of this in this challenging times.
It's not an incentive to improve it's a punishment.
fastcrate
OP3 years agoAnyone?