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

[chapeau-noir]

30-day returns, buyer pays unless it's SNAD (which I try to avoid). Seems to be a good balance. My customers are all over the demographic map.

[tobaccocardyahoo]

I have been selling online for a long time.

I, like most sellers, do not like getting returns. But returns are a normal part of a retail business.

While you as an online seller have increased the categories you sell in, I have reduced the number of categories I sell in over the years.

Starting at about the 2008 recession when Amazon became my primary marketplace, I have eliminated all of my categories which draw high maintenance buyers. I have eliminated all of my categories which appeal to the "easy money" scammers. I have eliminated all of my products which rely solely on subjective interpretation of condition and history.

I have been able to do this because I have limited revenue and profit goals, am not overly ambitious at theis time in my life, and am more motivating by buying things that interest me than I am of listing, selling and packaging my items.

I get have few returns, accept all returns if the buyer asks nicely, and the returns I get are from nice people, usually ignorant of what they are buying - trying to buy for someone else who is knowledgeable.

I am running a small business, on a large internet marketplace with a significant number of buyers who recognize that they are dealing with a small business who cares about the merchandise in the same why that they do.

I am one lucky S.O.B.

[my-cottage-books-and-antiques]

@valueaddedresource 

Here's my pop up. No handling time info. But maybe that's because I just changed this, and the pop up hasn't caught up to the change yet?

 So, I'll give it some time and check again later.

[fbusoni]

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@jg.mason wrote:

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.

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Thanks for your reply, which reminded me of a point I forgot to make initially.

I've read so many posts here from sellers who proclaim "NO RETURNS" and then are forced by a buyer, who spends five minutes learning how to get around remorse returns and files an INAD or worse -- opens a case -- to accept a return and pay for return shipping because the seller did not create a path for a return in the first place.  

If a seller is lucky, that's the end of the transaction.   But many write to complain of negative feedback that distorts what actually happened -- a nasty coup de grace if you ask me.  

THAT is the sort of Pandora's box I am inclined to not want to be forced to open.   

So I allow for remorse returns on my dime.   Which I have not yet gotten.

[fbusoni]

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@valueaddedresource wrote:

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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.

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Thank you, I had no idea.  (I knew that starting this discussion would be helpful!)  

[my-cottage-books-and-antiques]

@fbusoni That was one of the reasons I had gone to 30 day free returns as well....Absent free returns, buyers have a financial incentive to claim INAD for a remorse return. Free returns does not necessarily reduce the likelihood of a justified INAD (for example, item arrives broken due to carrier's mistreatment of package), but it does reduce the likelihood of false INAD claims. It has worked for me.

[fbusoni]

@tobaccocardyahoo 

Great post and lots of interesting perspectives, thanks.   I am in a very similar situation... I do not need to sell here, but I really get a kick out of sending nice things to others.  

I live in an area where there is a lot of old money.   And there are lots of treasures in storage lockers that end up in thrift shops because young people who come from old money have no idea how valuable old things can be.

The fact that I can make a few bucks is fun.   And making money here is not difficult:  my average expense is about $3 and my average sale nets about $38, which adds up if you sell every day.  

But what is even more fun -- for me -- is when someone writes me a polite message to ask if I might consider selling her something at a reduced price.  

I got one such message this morning.   "Hi, my name is so and so, I am trying to gather up some discontinued champagne glasses for my daughter's wedding."

I sent her an offer and she bought the glasses.  She saved $50, and I netted $145 after fees.  A win-win.  

[fbusoni]

@my-cottage-books-and-antiques 

Right.  Justified INADs happen and it's always a relief when they come from sane buyers who do not seek to punish a seller for things out of seller's control.  

[jg.mason]

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@fbusoni wrote:

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I've read so many posts here from sellers who proclaim "NO RETURNS" and then are forced by a buyer, who spends five minutes learning how to get around remorse returns and files an INAD or worse -- opens a case -- to accept a return and pay for return shipping because the seller did not create a path for a return in the first place.  

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Ebay has never forced me to pay for return shipping. I do not create a path for returns because I do not accept returns. The no returns doesn't mean no returns line gets repeated so much on here that people start believing it. The better way to say it is no returns doesn't mean no refunds. I think saying it that way would help new sellers understand it better.

[valueaddedresource]

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@fbusoni wrote:

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@valueaddedresource wrote:

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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.

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Thank you, I had no idea.  (I knew that starting this discussion would be helpful!)  

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@fbusoni you're welcome! You'll find it under shipping settings:

https://www.ebay.com/ship/prf

So for example if you know you can reliably get to the post office and ship same day for anything before 3 PM on weekdays, you could just set that as your cut off time so any orders that are placed before that would be expected to ship that day but anything that comes in after 3 PM, you could ship the next day without getting dinged for late shipping.

And as @my-cottage-books-and-antiques pointed out, you can also uncheck any days that you can't or don't want to offer it, like weekends, or change it just for specific days like if you know you have to take the kids to soccer practice on Wednesdays, you can make it 2 PM that day to give yourself that extra time.

I don't know what impact it has on sales these days and/or if it might be different for smaller sellers, but a larger company I used to work for in 2020 saw a decent uptick when they switched from 1 day to same day with a 1 PM cutoff (they processed 1,000+ orders a day through their warehouse between multiple direct websites, Amazon and eBay so 1 PM gave plenty of time to make sure orders would be able to be picked, packed and shipped that day without causing an end of day rush).

And it really helped sales when they went to Monday-Saturday warehouse operations as that extra day with same day handling was a good differentiator from competitors who were only doing M-F.

[gloryglorygifts]

We have always accepted returns and currently have it at 30-days. We pay for the return, which works for us because we rarely get them. 

[tobaccocardyahoo]

@fbusoni 

Back in the 1980's and 1990's the term "lifestyle business" was commonly used.

I cannot think of any references to that term in any internet forum that I have participated in. Though there is a wikipedia article for the term.

It is a business driven by the owner's personal interests and intended to generate the money to maintain the owner's style of living.

All of my businesses have been lifestyle businesses although some have exceeded my needs and goals.

Online there is a tendency to denigrate such businesses as hobby businesses, but they may use the best business practices and operate highly professionally.

All too often we encounter sellers who have no interests and are trying to make their fortune without any form of product knowledge or sensitivity. It is hard to explain to them how your business benefits from your knowledge and soul.

I am not a religious person, so my soul needs to be nurtured by what I expend my time on in this life.

[fbusoni]

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@valueaddedresource wrote:

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@fbusoni wrote:

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@valueaddedresource wrote:

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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.

---

Thank you, I had no idea.  (I knew that starting this discussion would be helpful!)  

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@fbusoni you're welcome! You'll find it under shipping settings:

https://www.ebay.com/ship/prf

So for example if you know you can reliably get to the post office and ship same day for anything before 3 PM on weekdays, you could just set that as your cut off time so any orders that are placed before that would be expected to ship that day but anything that comes in after 3 PM, you could ship the next day without getting dinged for late shipping.

And as @my-cottage-books-and-antiques pointed out, you can also uncheck any days that you can't or don't want to offer it, like weekends, or change it just for specific days like if you know you have to take the kids to soccer practice on Wednesdays, you can make it 2 PM that day to give yourself that extra time.

I don't know what impact it has on sales these days and/or if it might be different for smaller sellers, but a larger company I used to work for in 2020 saw a decent uptick when they switched from 1 day to same day with a 1 PM cutoff (they processed 1,000+ orders a day through their warehouse between multiple direct websites, Amazon and eBay so 1 PM gave plenty of time to make sure orders would be able to be picked, packed and shipped that day without causing an end of day rush).

And it really helped sales when they went to Monday-Saturday warehouse operations as that extra day with same day handling was a good differentiator from competitors who were only doing M-F.

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Thanks so much!!

I found the settings -- like everything else here, they were hiding in plain sight.

It's remarkable to me how there are some seller settings here, like this one, that are so incredibly useful and really make a seller's job so much easier and efficient.

And yet, at the same time, there are seller settings that are so hideous, so weird, and harmful to sellers that one has a hard time imagining that a sane human being thought of same.

[fbusoni]

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@jg.mason wrote:

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@fbusoni wrote:

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I've read so many posts here from sellers who proclaim "NO RETURNS" and then are forced by a buyer, who spends five minutes learning how to get around remorse returns and files an INAD or worse -- opens a case -- to accept a return and pay for return shipping because the seller did not create a path for a return in the first place.  

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Ebay has never forced me to pay for return shipping. I do not create a path for returns because I do not accept returns. The no returns doesn't mean no returns line gets repeated so much on here that people start believing it. The better way to say it is no returns doesn't mean no refunds. I think saying it that way would help new sellers understand it better.

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Thank you.   Just to be clear, you are saying that you will offer a refund without requesting a return.  

If so, yes, that would indeed be correct.  And I sometimes do the same.  regards

[fbusoni]

@tobaccocardyahoo 

Agree fully.  I think the attitude difference is largely generational.

I've noticed that for those who have come of age behind a computer screen, most everything in life is transactional.  Nothing really has any inherent value beyond what it can fetch online.  

I used to know a guy who did ugly clandestine work for a certain three letter agency.  

After he retired (at age 48 -- that's one of the "benefits" of that particular line of work)  he studied medicine and became a physician with his own practice.  

He charges a fraction -- next to nothing really -- of what others in his field charge.   I asked him about it a few years ago.  

He told me that he learned a bit late in life that being of service to others was really the highest calling for any human being, no matter what one did with one's life.