Since just a few "free" returns can negate any TRS savings you get for quite a while,

[adkhighker]

is there really any point in offering free returns just to be a TRS? The measly savings you get on ebay fees by being a TRS, just because you offer free returns, can be wiped out for a significant amount of time just by getting a few "free" returns with buyers simply changing their mind because it's free for them to do so.

So if the benefits of TRS can be wiped out because of a few returns via the free return requirement, is there really any advantage to being a TRS anymore?

[fern*wood]

I'm assuming you mean listings that qualify for TRSplus, since you don't have to offer free returns to be a TRS.

That's precisely why I choose to not offer free returns.  The math wouldn't work for me in the long run.

[adkhighker]

Yes, I meant TRS plus. Forgot to put the plus in the original message. 🙂

[juststuffisell]

I think you answered your own question unless it was rhetorical one and I missed it 😉

No, if you are dealing in "low volume" sales where the potential returns aren't offset by large sale quantity, offering the free returns is not a wise decision. In fact, it can increase your costs to sell in a given category by 4% if you have to many try, buy and remorse returns. I kinda think that is why ebay tied it all together knowing that most sellers would fall off the discount wagon pretty quickly once the returns started adding up.

Cheers

[slippinjimmy]

I don't qualify for TRS+ discounts (long handling time) but I still offer free returns as I have for the past 6 years.

I don't offer it because of potential discounts, I don't offer it because it might very slightly increase my exposure either. I do it because for buyers who care about these things it shows I stand behind my items 100%.

In 6 years I've had one remorse return that I had to cover the return shipping, my loss on that was $4. Total cost for offering free returns over 6 years is about 0.00004% of sales (a coffee and a donut).

[goodluckselling]

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@slippinjimmy wrote:

I don't qualify for TRS+ discounts (long handling time) but I still offer free returns as I have for the past 6 years.

I don't offer it because of potential discounts, I don't offer it because it might very slightly increase my exposure either. I do it because for buyers who care about these things it shows I stand behind my items 100%.

In 6 years I've had one remorse return that I had to cover the return shipping, my loss on that was $4. Total cost for offering free returns over 6 years is about 0.00004% of sales (a coffee and a donut).

---

Good Points.  I really do not understand why free returns is a problem.  If you are having returns that should send a signal that your listings and or shipping practices might need some refinement.  It is not about free returns,  it is much more about why are you having returns?

Good Luck Selling!

[fern*wood]

I believe the biggest exposure to returns for a seller is determined by the categories they sell in.  It isn't a level playing field for everyone, but unfortunately, ebay has the same requirements for everyone.   So, some can jump through the hoops without having a problem or losing money while others just can't. 

[goodluckselling]

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@fern*wood wrote:

I believe the biggest exposure to returns for a seller is determined by the categories they sell in.  It isn't a level playing field for everyone, but unfortunately, ebay has the same requirements for everyone.   So, some can jump through the hoops without having a problem or losing money while others just can't. 

---

And that is part of the risk - reward of selling in certain categories.  Perhaps many sellers do not take this into consideration?  Service metrics is a good way to look at your numbers and find out where you stand compared to your peers.  The info can be a very good reference for sellers if they can just get past the ratings and take the info as a chance to find solutions.

Good Luck Selling!

[adkhighker]

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@juststuffisell wrote:
I think you answered your own question unless it was rhetorical one and I missed it 😉

No, if you are dealing in "low volume" sales where the potential returns aren't offset by large sale quantity, offering the free returns is not a wise decision. In fact, it can increase your costs to sell in a given category by 4% if you have to many try, buy and remorse returns. I kinda think that is why ebay tied it all together knowing that most sellers would fall off the discount wagon pretty quickly once the returns started adding up.

Cheers

---

Thanks, that pretty much clears it up for me. Back in June, I took a long break from selling (This is my posting account) and only started up again about a month ago. Because I took the long break, I lost my TRS+ status because it put me under 100 transactions for the year, and I was wondering if it was worth it to do the free returns thing to get back to the TRS+ status again. I mostly sell higher priced antiques.

In almost 19 years of selling, I only had one return. Starting a month ago, I started offering free returns for the first time to see what happened, and in just a few listings I am already experiencing the "I am returning this item because I changed my mind" reason.  One more of those, and I will never offer free returns again. In fact, I'll probably just not offer free returns, period, because it just isn't worth the tiny bit you save with a 10% discount on fees unless there is some other huge advantage to being a TRS+ that I'm not aware of. 

[fern*wood]

I have been a TRS since this designation started, but I will not do free returns for that measly discount.  Currently there is a little shipping discount for being TRS, but I understand that is also going away in January, so frankly, if I lose TRS is won't mean much to me.  

So if you want to be a TRS you don't have to do the free returns, but you do have to have 100 transactions in a year.

[totoro470]

As others said, it depends a lot on the category. The only real way to know if it's worth it is to do the math yourself. 10% off FvF is around $100 a month for me, I get returns maybe once every 2 months. That means I'm losing about $12 every 2 months (shipping there and back) for offering free returns but gaining $200 from discounted fees.

You also have to factor in the benefit to your sales, people may be more likely to buy from you if you have free returns. This can be a negative too though as it may attract people that are much more likely to do returns. Keep in mind that many people are too busy to do returns. I've had a couple returns fizzle up simply because the buyer never bothered to ship the item.

[slippinjimmy]

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@fern*wood wrote:

I believe the biggest exposure to returns for a seller is determined by the categories they sell in.  It isn't a level playing field for everyone, but unfortunately, ebay has the same requirements for everyone.   So, some can jump through the hoops without having a problem or losing money while others just can't. 

---

Normally and traditionally in retail the products with the highest rates of returns also have the highest Gross Margins and that is how the field is levelled.

In your average shopping mall the clothing retailers works on 50 - 60% margins while the store next door selling books only has a gross margin of 40% and the tv store maybe 25%.

All through retail there has been a squeeze on margins over the past few decades, even more so in the current online era but clothing retailers generally still have the highest margins.

The same is true on eBay, you need to level the playing field with profit margins that match your costs of selling you product line just like any other expense.

[adkhighker]

Yes, for sure, totoro470, and speaking of doing the math to see if it's worth it, just imagine what newbies must be going through if they try to attain TRS+ status by offering free returns right from the start of their career on ebay. 

I also don't think ebay does nearly enough to educate buyers on the fact that the cost of their free returns comes out of the sellers pockts, not ebay's pockets. Now that ebay prints off the return shipping labels for buyers, I'm sure more than a few buyers think ebay is paying for the return shipping cost themselves. 

[adkhighker]

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@slippinjimmy wrote:

I don't qualify for TRS+ discounts (long handling time) but I still offer free returns as I have for the past 6 years.

I don't offer it because of potential discounts, I don't offer it because it might very slightly increase my exposure either. I do it because for buyers who care about these things it shows I stand behind my items 100%.

In 6 years I've had one remorse return that I had to cover the return shipping, my loss on that was $4. Total cost for offering free returns over 6 years is about 0.00004% of sales (a coffee and a donut).

---

You can also stand behind your items by NOT offering free returns, but by adding a line at the bottom of your listing that says something to the effect, "If I made a mistake in the listing, or if it is not properly described in any way, you can return your item for a full refund including your return shipping cost."

Unless you're some big box store selling millions of dollars of mechandise every week, the idea of buyers returning items just because they changed their mind is problematic for small sellers, and it's only going to get worse as time goes on.

[totoro470]

If you have TRS+ you can still turn off returns per listing too. You won't get the TRS discount on that specific item but it may be helpful for specific items you think may have a high return rate.