I had a conversation with an eBay rep yesterday who called me to tell me (once again) about the free returns program, and how this wonderful program can boost sales by 15 percent, according to some data that was most likely manipulated to get people to believe that sales = profits.
I feel really bad because by the end of the conversation, she was trembling, perhaps even in tears, and that was certainly not my intention. The poor girl was just doing the job she was hired to do, reading a script that she was told to read, and to try to convince Top Rated Sellers that it's okay to be extorted by eBay. I hope she did not take my feedback about eBay personally, but I really think it was her first day. I explained to her that this move by eBay is opening a whole new channel for thieves. Now they can search by "free returns" so they can target sellers who offer this program. Thieves know they can get items for free or for at least 50% off. There is no way a seller can make a profit with this strategy. There is no honor among thieves, and if eBay truly believes members are always honest, they are sadly optimistic. As it is now, most returns are FALSE SNAD cases (in other words, the buyer LIES to avoid shipping and restocking fees), so let's just make it easier for them by removing the step where they have to lie to return something for free (yep, that will make them honest!). The rep excitedly tells me that if the item is returned in any other condition than we sent it, we are allowed to keep 50% of the sale and refund only 50% instead of having to refund the full transaction. After four reports of buyers misuing the free returns system, eBay will give them warning. So they get to rip off at least FOUR sellers before eBay shuts them down. (Yep, again that's keeping them honest!)
I reiterated to the rep that eBay is cheating us out of our TRS benefits by forcing us to take losses on our sales. If we do not conform to this ridiculously unprofitable policy, we do not get our benefits on those listings. So, If I sell an item for $1000, the buyer requests a return and sends back a box of rocks, I get to keep 50% of the sale IF I CAN PROVE that I sent out the correct item. I do not get a discount on my final value fees because it's only a partial refund, but hey, at least eBay put our TRS badge on that item.
So to put this in perspective:
I have a unit that I paid 700 for (because I am adistributor).
I sell the unit for $1000. I pay shipping $25. Buyer requests return, I pay another 25 plus call tagf fee of 16, so it costs 41 to bring it back. I receive a box of rocks, the buyer keeps the unit, and I get to keep half of the refund because the buyer didn't send back the same unit. Here's what it looks like:
1000-100 (fvf)=900
900-25 (shipping)=875
875-700(cost of unit)=175
At this point I made a profit of 175 (sounds good, right?)
Oh but wait. The buyer requests a return (no reason is needed).
175 (what I initially made) - 41 (return shipping and call tag)=134
Buyer ships back box of rocks instead of a unit that I can re-sell.
134-500(partial refund for scam buyer)= -366
This transaction would cost ME $366 to receive something back other than what i sold.. Not sure how eBay expects people to sell here if we are not profitting or at least breaking even.
I suppose the rep who called me NEVER SOLD A THING ON eBay! Because not one person who ever has, would agree that this is a "good" program for sellers. I think she realized that after I schooled her.
I still feel really bad though, because she honestly thought she was promoting a good program.
