How does this make sense for the bookseller?
Ordered a cheap book from a megaseller for $4.74 with free shipping.
Received the wrong book and opened a return.
Seller provided a return label (unlike most of the megalisters who say just keep the wrong book.)
Shipped it back in their same flimsy packaging. Seller received the return but seems to be waiting until the last minute to refund. If they don't, I'll just ask eBay to step in.
How does this make sense from a financial or customer service perspective? I realize discounted shipping is at play here, but this seems like a lo$ing strategy if it's this seller's standard policy.
19 comments
luckythewinner
·2 years agoI do not think the seller's standard policy is to always ship the wrong book and lose money 😂
That aside ...
IMHO a smart seller makes his business decisions based on his overall business, not based on one single transaction in isolation.
Some sellers posting here have stated that when they require a physical return, 90% of the buyers requesting a return never follow through and never end up getting a refund. If that is the case, this would be a winning strategy not a losing strategy.
IMHO you do not have the information necessary to determine whether the seller's strategy is wise or not.
lux.ra_14
OP2 years agoIt's a given that the seller doesn't have a policy of shipping the wrong book. The question was, why would a seller pay shipping both ways for a $4.74 item?
Do I have all the information about the seller's model based on a lone transaction? Of course not. I do know that intentionally losing money on any transaction isn't "wise "
As mentioned, most book megasellers have a high error rate. They get a lot of returns, or a lot of negs instead. They generally eat their mistakes and don't require a return they will lose money on. That's wiser.
vintage-camerastuff
·2 years agoMaybe he just got to busy and forgot about the refund.
cardsforauction
·2 years agoMaybe the money goes into an account that gains interest for a few weeks and then they send the refund on the last day?
susanb1872
·2 years ago@cardsforauction Interest ? Probably not the reason. Commercial checking accounts pay no interest and if they could get interest maybe 1/2% or 3/4% (annual rates).
chevymontecarlo88
·2 years agoI do find it questionable (on a $4 item that will end up losing money) why some sellers do that as well and think it is part automation (no set minimum $ amount of returns) or the gamble of buyers not bothering to take the steps to return the item.
kensgiftshop
·2 years agoHow does it make sense?
They get the book back so they can sell it.
lux.ra_14
OP2 years agoMaybe they can sell it again, but at a loss.
It's a common title with way more supply than demand. I ordered it only because it was listed as the "signed edition," and the stock listing pic showed the signed edition. Of course, I received a beat-up copy of the regular, unsigned edition.
It's still listed as the signed edition. What will the next buyer get, and will the loss be compounded by another return?
az93
·2 years agoMegasellers have ruined ebay book sales for me. I can't compete with them, no way. Cheap prices and free shipping. I'm glad to read they sometimes lose money!
mr_lincoln
·2 years agoHi @lux.ra_14
"Mega Sellers" are dealing in volume and need a streamlined process that requires little oversite or interaction to keep their overhead costs low. They know a small % of transactions will result in returns or refunds but the vast majority of their sales go through without any issues and that's where they make their money.
It is conceivable that on your transaction they lost some money but on the other hundreds or thousands of low cost items they sold they didn't.
lux.ra_14
OP2 years agoMakes sense, but the mega-booklisters have a high error rate.
I buy good books from real booksellers, but I do buy cheap stuff for reading or reference from the megalisters. The error rate for my orders is about 50 percent -- wrong book, wrong edition, condition not as described, or damaged due to poor packaging.
Why do I keep ordering? Because it's usually easy to get a refund without a return. But I'm not proud. Five bucks is still something, and returning is no big deal.
mr_lincoln
·2 years ago@lux.ra_14
While I understand what their business model might be I have to agree with you as to how they can make a consistent profit over time if they have a high error rate. Here's another part that you are not aware of unless you sell. The Book category for Sellers comes with a higher fee that they pay eBay per transaction and that fee is based on the book price, paid shipping and any applicable sales tax. On the shipping end if they ship Media Mail they do not get a discount if they purchase their labels through eBay.
What could complicate and add to their potential loss is if a Media Mail shipment winds up being undeliverable USPS charges the original shipper the return postage to get the item delivered back to them.
lux.ra_14
OP2 years agoRe the error rate ... This particular seller has about 35,000 negs and neutrals in the past year. That's not unusual for the mega-booksellers.
Why do they thrive? The appeal of cheap reading copies with free shipping. It's that simple. But that's still a lot of unhappy buyers, coupled with what has to be added pressure from increased USPS rates in recent years.
chevymontecarlo88
·2 years agoEven if you take all of those things in consideration, the time/persons it takes to process (accept, inspect, process, relist, and put back in storage to be able to find again) these returns is also a loss. (labor costs and even packing materials to a degree)
hartungcards
·2 years ago"How does this make sense from a financial or customer service perspective?"
This is not your problem.
lux.ra_14
OP2 years agoTrue, but I didn't say it was a problem.
Just curious how it make sense for the seller. I assume even the bulk shipping discounts for big sellers have been adjusted as USPS prices go up.
1786davycrockett
·2 years ago@lux.ra_14
Possible tax write-off, lowering the seller's tax liability?
lux.ra_14
OP2 years agoI was also thinking it might be a gamble that many buyers won't actually follow through with the return. For less than $5, it does require photographing the item, repackaging it, and getting it to the PO.
fbusoni
·2 years agoIndeed. I had a buyer many years ago who could not be bothered to return a $76 crystal decanter for that very reason.
Must be nice. 🙂