How do you calculate your optimal return policy?

[fbusoni]

I'm curious to know how other sellers assess what return policy is optimal for them.  I've not seen this discussed much so I thought that, in the interest of stimulating discussion, I'd share my own experience.  

(I know I can always do better, so I'd welcome critiques and observations, and would enjoy hearing the experiences of others.)

When I started on eBay in 1999 I was quite casual about selling (worked full time, family responsibilities, etc.).   Made some pocket change every month selling stuff I'd collected in my 20s and 30s. 

I retired about 6 years ago and with my new found free time decided to branch out into different categories.    

I also decided to offer same day / 24 hour shipping.  

eBay noticed and I received a call from a rep who suggested I offer paid returns for 30 days, so I did.  

Sales started to accelerate.

About two years or so ago I switched to a 60 day paid return policy largely because of a nice seller protection proviso (related to INADs after 30 days if I recall correctly -- please correct me if I am wrong about that) that is offered as part of that package.   

When I switched to 60 days, I observed a further uptick in sales, which has continued fairly steadily to this day.  

I know that eBay is aggressively promoting my listings in exchange for my customer service, but I believe that the most important reason for more sales is the reverse psychology that is at work when a buyer sees 60 days for a return.  And so far, at least, I've had no returns since making the 30-day switch.  

There are, I reckon, at least a few factors at work here:

• I sell mostly (but not exclusively) in categories that appeal to older, solvent buyers; these buyers take time to leave detailed feedback, and they pay close attention to feedback that has been left for me.
• The only items I sell are those that are in my personal possession. 
• I use my phone to take sharp photos of my items (inside and in natural light) from every conceivable angle and will often use the 24 photos that are available to me in a listing.   I sometimes supply a video.
• I make crystal clear that the item that the buyer sees in the photos is the one they will receive.  (Some buyers are actually surprised when this happens, believe it or not -- testimony I suppose to the average eBay shopping experience.)
• I ship delicate items with great care, and people do not mind paying an extra dollar or two for added weight if it means the item will arrive safely.
• Finally, I do believe that the little blue "TR Plus" badge that appears next to a listing makes a difference, especially in certain categories.

I realize of course that not everyone believes (for whatever reason) that they can afford to to be flexible, and that for some categories, "no returns" is a sound policy and one that works -- as long as the buyers are honest and opt to not file an INAD.  

Any other experiences out there?   Regards

[toysaver]

A great return policy starts with making an accurate listing showcasing the item with an impartial eye.   As buyers may now purchase without reading the description it's imperative any defects are in the title.  Pictures need to show different angles and any defects. 

Using AI is in opposition to providing a realistic opinion of the item and may increase returns.   

[fbusoni]

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@toysaver wrote:

A great return policy starts with making an accurate listing showcasing the item with an impartial eye.   As buyers may now purchase without reading the description it's imperative any defects are in the title.  Pictures need to show different angles and any defects. 

Using AI is in opposition to providing a realistic opinion of the item and may increase returns.   

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Thanks, just the sort of insight I was hoping to hear, and I agree... my descriptions are short and sweet.   regards

[luckythewinner]

How do you calculate your optimal return policy?

I am an older, solvent buyer. 

I do not buy things on eBay to "try them out" - I buy things I want. So I care very little about a seller's return policy, because I am not already worrying about returning an item while I am buying it. (Because I know that if there is an issue - which is very rare - that I can file a Not As Described dispute.) 

So as a seller, I view eBay through this lens. I want buyers who think like me - buyers who know what they want and are not already considering how easy it might be to return it if I decide "I guess I don't want this".

I have offered 30 days returns (not 'free' returns) because I want buyers who think like me. As a result, I get virtually zero 'remorse' returns. 

[fbusoni]

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@luckythewinner wrote:

How do you calculate your optimal return policy?

I am an older, solvent buyer. 

I do not buy things on eBay to "try them out" - I buy things I want. So I care very little about a seller's return policy, because I am not already worrying about returning an item while I am buying it. (Because I know that if there is an issue - which is very rare - that I can file a Not As Described dispute.) 

So as a seller, I view eBay through this lens. I want buyers who think like me - buyers who know what they want and are not already considering how easy it might be to return it if I decide "I guess I don't want this".

I have offered 30 days returns (not 'free' returns) because I want buyers who think like me. As a result, I get virtually zero 'remorse' returns. 

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So if you buy something because you love it and besides, it will match the color, say, of similar items you already own... and it arrives, and it turns out that the item is in perfect condition, just as the seller described, but the shade of the color is just a tiny bit off, because the color was not properly displayed by eBay's image compression software, through not fault of the seller of course ...  you will jump right to an INAD.  

This is precisely why I offer free returns.  

The last thing I would do would be to hope that I attract only buyers who "think like me."   Hope, in my opinion, is not really an adequate substitute rational planning.

Also, curious about "virtually zero remorse returns."  What sort of returns DO you get?  INADs, for which you have to pay return shipping?

Fortunately, most buyers are in fact rational, normal consumers who simply want the assurance that they will face no hassle if something does not work out.   I do not anticipate premeditation or ill-intent.   

Remorse returns from sincere buyers happen, and in my opinion buyers are entitled to same.

regards

[mcdonal-927]

I did not get the same impression from luckythewinner's post.  I read their post as if there was an ISSUE such as broken, chipped, non functional etc would be the reason they would file an INAD not a remorse return.

My return policy is 30 days.  I do not offer free returns, but I have no issue with most returns, it will go right back out the door soon enough.  I have had a number of INADs that were customer error or misunderstanding.  Most are resolved with message and closed by the buyer.  

I also want buyers that think like luckythewinner, buyers who know what they want and aren't worried about returning it before even receiving it.  I do not want buyers that purchase without being sure that is what they want/need or changing their mind for whatever reason.

[luckythewinner]

So if you buy something because you love it and besides, it will match the color, say, of similar items you already own... and it arrives, and it turns out that the item is in perfect condition, just as the seller described, but the shade of the color is just a tiny bit off, because the color was not properly displayed by eBay's image compression software, through not fault of the seller of course ... you will jump right to an INAD.

1) I have never needed to make a remorse return on eBay. Ever. So you are projecting a hypothetical situation onto me that simply does not happen. (And incidentally, in the hypothetical scenario you describe, the picture on eBay is part of the description - so if the color in the image was wrong, that would be an INAD and not remorse).

2)  But in that hypothetical situation, I would not "jump right to an INAD" any more than I would "jump right to a remorse return". I would contact the seller and ask for his take on the issue, just as any buyer who thinks like me would.

Also, curious about "virtually zero remorse returns." What sort of returns DO you get? INADs, for which you have to pay return shipping?

"Virtually zero" would mean a handful of remorse return requests in 25 years. I have only paid for return shipping once in my life, where the value of the item was enough that I was willing to pay to get it back. In all other cases I simply refunded in full - as I also do with INADs (which are also quite rare for me).

[jg.mason]

I'm a retired/ hobby seller. I have no returns, I have thought about changing it to buyer pays returns but since I've been thinking about it for a while now I'll probably leave it as it is.

I'll never be a top rated plus seller because I'm not going to do 1 day shipping so no advantage to offering free returns there.

99% of the items I sell are not worth being returned so no advantage there either.

Would it stop some INAD cases? Possibly but I've only had a few of them since I started selling and I have no idea if by offering returns would have stopped them or not.

Would it help sales? From the buyers aspect (not ebays) possibly but I think also that if a buyer sees the no return policy they may look over the listing a bit closer before deciding to buy or not which I think is a win win.

I see a lot of sellers on here repeating the line, no returns doesn't mean no returns, well yes it does what it doesn't mean is no refunds. At first I used to roll my eyes every time I read that but after being here a while I get it most of us are here to offer advice and try to help sellers with problems especially newer sellers.

I do think every seller has to make their own decision about offering returns and this thread could end up having some good advice in it.

[my-cottage-books-and-antiques]

@fbusoni I have had 30 day free returns for a long time, since before ebay provided any ebay policy benefit or requirement to use it. I did it because, back then, in my categories, very few sellers were offering it, and so it did give me (I suspect) a small competitive advantage. I actually had messages from buyers thanking me for offering it and pleased to purchase from someone who stood behind his merchandise. I think it is now more common, and , combined with ebay's Moneyback Guarantee for INAD, the competitive advantage is likely less. 

One reason I chose 30 days was that studies (back then) indicated that , on average, online returns were initiated within, I think 3 days. So, simply adding more time to the return period wasn't likely to actually increase the rate of returns. (I should add that I have a low return rate, in part I'm sure due to my inventory types) . I am not aware of any ebay seller protection advantage for 60 day returns (I believe there is an advantage for 30 day or more returns). I haven't double checked this though.

As we head into the Holiday Shopping Season (which is starting earlier and earlier, so much so that some pundits are now talking about Black Fall rather than Black Friday LOL), I am going to give 60 day free returns a try. In part, because people who buy Christmas gifts will buy more than 30 days before Christmas, and may only find out on Christmas Day that the gift they gave someone was not suitable for some reason.

And in part because you have suggested that there is a search placement advantage to this. It might be hard to see a clear visibility benefit because we are also (hopefully) moving out of the Summer Slump and into a historically better sales period (for my kind of stuff), so any increase in sales might be more attributable to other factors. But I think the risk in going from 30 days to 60 days is small enough that it's worth a try.

[my-cottage-books-and-antiques]

@fbusoni And I'll add here---although not strictly related to your question about returns---that I will also be trying out same day handling this Holiday Season, per your suggestion. Some years back, I first tried one day handling for the Holidays because I figured it might give me a competitive edge (and back then, fewer sellers were offering it), and was somewhat surprised to find that I could manage it. Hopefully, I will find the same thing if I go to same day handling...and if not, I can always go back to one day. As with the 60 day return test, it will be hard to measure exactly what impact this will have on visibility and sales because I am making the change just as we are heading (hopefully) out of the Summer Slump season and I also expect I will be offering more sales, maybe increase my PLS rate, do more with social media, etc.

Here's wishing a successful Holiday Season to us all!

[my-cottage-books-and-antiques]

@fbusoni  I believe ebay used to provide a seller's handling time in the listing. Am I correct that today ebay only provides the estimated delivery time? No mention of handling time?

I don't have a problem with that, just trying to confirm that I'm not missing something here.

[valueaddedresource]

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@my-cottage-books-and-antiques wrote:

@fbusoni And I'll add here---although not strictly related to your question about returns---that I will also be trying out same day handling this Holiday Season, per your suggestion. Some years back, I first tried one day handling for the Holidays because I figured it might give me a competitive edge (and back then, fewer sellers were offering it), and was somewhat surprised to find that I could manage it. Hopefully, I will find the same thing if I go to same day handling...and if not, I can always go back to one day. As with the 60 day return test, it will be hard to measure exactly what impact this will have on visibility and sales because I am making the change just as we are heading (hopefully) out of the Summer Slump season and I also expect I will be offering more sales, maybe increase my PLS rate, do more with social media, etc.

Here's wishing a successful Holiday Season to us all!

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@my-cottage-books-and-antiques I know you already know this, but just a general note on trying out same day handling - remember that eBay gives you options to set a cut off time and that can make it much easier to "manage it" too.

If you're concerned about timing trips to the post office, you can set up a cutoff time early enough in the day to give yourself plenty of time without having to try to make a last minute dash if another order comes in just before closing.

[my-cottage-books-and-antiques]

@valueaddedresource thanks. Yes, I've set a cut off time, and it is set for Monday thru Friday, no Saturday. 

[valueaddedresource]

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@my-cottage-books-and-antiques wrote:

@fbusoni  I believe ebay used to provide a seller's handling time in the listing. Am I correct that today ebay only provides the estimated delivery time? No mention of handling time?

I don't have a problem with that, just trying to confirm that I'm not missing something here.

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@my-cottage-books-and-antiques they do show the handling time...though now it's in the shipping details pop up which I dislike for other reasons. 😂

[tealt]

I have 30 day free returns because...

As a buyer this is what I want to see when I am considering a purchase.

As a seller this policy has not been a burden.   In 25 years I've had one remorse return and 3 INAD's.  Three of the INAD's were deserved (my mistakes), and one was The Mysterious Case of the 17C Nuremberg Chest--which was an INAD with unique features.