If you offer 'Free Shipping' and get a return request, you pay for shipping 3 times over

[best_vintage_photos]

Example: So let's say you are a seller who offers 'Free Shipping' and you allow returns. You sell an item for $20, but the cost to ship the item is $3. Now you are down to $17 minus another almost $3 in eBay and PayPal fees. But let's forget about those fees for now as they are really just a part of the true cost of doing business here.

You shipped the item, it was delivered, but your buyer wants to return it. Since you accept returns, the buyer can return the item for any reason whatsoever. It doesn't matter what the reason is, you have to take it back, but you do get screwed big on shipping in this scenario.

A.) You mailed the item and the shipping was $3. THIS represents the first time you paid for shipping.

B.) Here is where you get screwed. You sold the item for $20 with 'Free Shipping' which we all know is a portion of the $20. In this case, the number was $3 to ship so you were left with $17. Once you get your item back the buyer is refunded the full $20 minus a PayPal fee of less than a dollar.

To be completely fair, the buyer should take $3 from his $20 refund and ship the item back to you, but that doesn't happen. THIS is the second time you paid for the postage. It is just that your buyer gets to keep it.

C.) Then you buy a shipping label for the buyer, and THIS represents the third time you are paying for postage.

This situation can not happen if you charge for shipping.

[toniandnikki]

I always put "buyer has to pay for return postage" and I deduct the amount of shipping from the refund. I have that clearly stated in all in all of my free shipping listings so buyer can clearly see that frivolous returns are not to their advantage. It has worked for me so far. The only time I issue a full refund is when an item is damaged or broken.

[ersatz_sobriquet]

Yep.....it's why I have never done free shipping except on first class items...well except for a few years ago when ebay liked to glitch and gotcha and stuck it on a few listings before I noticed, sneaky ebay!

[best_vintage_photos]

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@ersatz_sobriquet wrote:

Yep.....it's why I have never done free shipping except on first class items...well except for a few years ago when ebay liked to glitch and gotcha and stuck it on a few listings before I noticed, sneaky ebay!

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Yes, most of my items are all 1st class, and i don't get many return requests anyway. Maybe 3 or 4 during the past 16 years.

[ebbyisme]

 I really don't have a clue how you came to the "paying three" times thing even with your explanation. You sold an item, paid a total of six dollars for shipping - you paid for shipping twice.... other fees have nothing to do with it... I think the problem is the first and second steps.... they are really once, you are counting the amount twice. You got $20, you paid for shipping $3 - you are out that $3 either way it is the same money, you pay return shipping - another $3, total of $6. You refunded $20  for a total of $26 dollars. And Charging for shipping won't do anything if the buyer files SNAD.... which some buyers will do to avoid paying for the return.

It really depends on what you sell.   I've had a less then a 1% return rate and "free shipping" helps visibility (I've tried separate shipping) - which is VERY important on my one ID, so the increase in sales far outweighs the slim chance of a return. For me that only applies to first class mail, anything shipped priority I use calculated shipping.

[best_vintage_photos]

"And Charging for shipping won't do anything if the buyer files SNAD.... which some buyers will do to avoid paying for the return."

I didn't say it would do anything if the buyer files a SNAD. 

The difference is if you charge for shipping, you only get HIT for shipping TWICE on a return instead of THREE TIMES when 'FREE SHIPPING' is used as explained in the OP.

[fern*wood]

Do you have your return policy set to pay the return shipping?  I do not pay that on remorse returns myself.  Some people also set up their policy to charge a restocking fee to cover for lost "free" shipping. 

[best_vintage_photos]

Okay, i am going to explain this as simply as possible to you.

Let's say YOU are the seller here, and YOU just paid the postage amount three times in just one transaction.

A.) $3 paid for the original postage to ship item to buyer.

B.) $3 paid for shipping label because buyer wants to return.

C.) $3 is the amount you lost for offering 'Free Shipping', and here is where you lost it: When item sold, you ended up with $17 minus eBay / PayPal fees which we aren't even counting because they are the cost of doing business. So let's just say you sold it and ended up with $17. How much did your buyer end up with? 

Simple math - 20 minus 17 = 3 

Your buyer ended up with an extra $3 that you never even saw - ever in this transaction.

[best_vintage_photos]

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@fern*wood wrote:

Do you have your return policy set to pay the return shipping?  I do not pay that on remorse returns myself.  Some people also set up their policy to charge a restocking fee to cover for lost "free" shipping. 

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I don't get enough returns to really worry about it. It was more important to me to attain TRS, and to do that you need to accept returns. I think there may have been 3 or 4 returns in the past 16 years so . . . .

[mallontown]

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@best_vintage_photos wrote:

Okay, i am going to explain this as simply as possible to you.

Let's say YOU are the seller here, and YOU just paid the postage amount three times in just one transaction.

A.) $3 paid for the original postage to ship item to buyer.

B.) $3 paid for shipping label because buyer wants to return.

C.) $3 is the amount you lost for offering 'Free Shipping', and here is where you lost it: When item sold, you ended up with $17 minus eBay / PayPal fees which we aren't even counting because they are the cost of doing business. So let's just say you sold it and ended up with $17. How much did your buyer end up with? 

Simple math - 20 minus 17 = 3 

Your buyer ended up with an extra $3 that you never even saw - ever in this transaction.

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in your examble you pay shipping twice 

once to the buyer

ansd once back to you 

$3.00 x 2 shipments= $6.00

The buyer ends up with no item and the original purchase amount paid not $3.00.

If you found my reply useful, please give it a Helpful. If my response assisted in resolving your question, please click "Accept as Solution."

[fern*wood]

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@best_vintage_photos wrote:

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@fern*wood wrote:

Do you have your return policy set to pay the return shipping?  I do not pay that on remorse returns myself.  Some people also set up their policy to charge a restocking fee to cover for lost "free" shipping. 

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I don't get enough returns to really worry about it. It was more important to me to attain TRS, and to do that you need to accept returns. I think there may have been 3 or 4 returns in the past 16 years so . . . .

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I just looked at your return policy and it states the buyer pays for return shipping.  Based on this, you never have to pay for that label, and thus never have to be out that additional postage for a remorse return. 

Your thread made me think you were concerned about this.

[best_vintage_photos]

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@fern*wood wrote:

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@best_vintage_photos wrote:

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@fern*wood wrote:

Do you have your return policy set to pay the return shipping?  I do not pay that on remorse returns myself.  Some people also set up their policy to charge a restocking fee to cover for lost "free" shipping. 

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I don't get enough returns to really worry about it. It was more important to me to attain TRS, and to do that you need to accept returns. I think there may have been 3 or 4 returns in the past 16 years so . . . .

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I just looked at your return policy and it states the buyer pays for return shipping.  Based on this, you never have to pay for that label, and thus never have to be out that additional postage for a remorse return. 

Your thread made me think you were concerned about this.

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Well i am paying for a return label because of eBay's new return policy procedure.

[fern*wood]

What new policy?  I thought the only time paying for a return label was a requirement was if a not as described case was filed.

Another thing about your $20. example.  Many people that charge twenty with free shipping have incorporated the shipping cost into this asking price, so the buyer technically paid the initial shipping.  

[best_vintage_photos]

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@fern*wood wrote:

What new policy?  I thought the only time paying for a return label was a requirement was if a not as described case was filed.

Another thing about your $20. example.  Many people that charge twenty with free shipping have incorporated the shipping cost into this asking price, so the buyer technically paid the initial shipping.  

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Well i got a return request, and the pricedure works like this:

1. You get mesasage rom eBay that buyer is requesting to return item.

2. Buyer selects reason for return from whatever choices eBay provides. In my case, the buyer said that the wrong item was sent. That was obviously not true, but it was the choice he made as a reason for return. He also went on to make a statement that revealed this to be a clear sign of buyer's remorse.

3. Now you click on a link to see how you can procede with this, and you are given four choices by eBay:

A.) Accept return and purchase shipping label for buyer.

B.) Refund buyer in full and let buyer keep item.

C.) Partial refund to buyer and let buyer keep item.

D.) Communicate with buyer.

Where in this process would you be able to block any buyer's remorse situations?

[best_vintage_photos]

"Another thing about your $20. example.  Many people that charge twenty with free shipping have incorporated the shipping cost into this asking price, so the buyer technically paid the initial shipping."

You are correct. The buyer did pay the original shipping, and then got it back in the end. Perhaps i should slow down on my pre-coffee posting? lol