Tweety, that about sums it up. My only suggestion for you and many others in your position would be to maybe take a few days to just get out of the storm and relax.
You want to make your decisions as objectively as possible. Have some fun and take your mind off this place for a little while. Then, crunch some numbers - look at your expenses vs profit for the last year. Try working with a 5% return rate and see if you can increase prices a bit on each item to accomodate for anticipated returns. If you are are not a high quantity race to the bottom seller and have been selling your items at an acceptable rate - then you might have the margin for a small increase overall to accomodate the returns, if not.........
I did this and the numbers didn't lie. It was time for me to step away which I did a little over a year ago. I did sell alot of used/vintage clothing and the returns were minimal as I always had a no returns policy. That's something else you might look at. My reputation seemed to overcome my no returns policy. It discourages some sales but also seperates out those that feel free returns are a right for any reason - regardless of how well you described the item.
It was the increased shipping costs that got me in my last 2 years of selling. Just looked at the rates and was shocked at the increases for standard shipping (not priority). 13.65 for 2lb small box. That's a no can do for me. Though I do see many items that sell for maybe 15.00 with 13.65 shipping - crazy - especially when fees are calq'd on both.
It's too bad sellers cannot offer BOGO sales. I think they'd be more effective than lot sales for several reasons. If we're required in every other way to offer the same services as large retailers, why not be able to advertize the same also? This would sure help the small sellers of clothing etc ease some of the pain of shipping costs for the buyer.
