cancel
Showing results for 
Show  only  | Search instead for 
Did you mean: 

Losing Money on Shipping for returned item

We ship an item out (Free Shipping) it costs us $12.05 to ship its a $30.00 item. Ebay allows the return process to start even though the return is not a valid reason. Ebay gives us no option to deny this claim (hatchet not sharp) so we accept the return they get dinged with a 20% restocking fee = 6.00 we are out the other 6.05. This of course is an example but have been running into alot of this as well as being held hostage when we add shipping to the auction to reduce our shipping so they can pay and there is no way to report this shady activity that I know of until the person has paid or canceled their order. We  also notice buyers say this is wrong or its a little bent or something minor and ask for a replacement even though the item is sold as is. Do we just say NO RETURNS Period we value our feedback but we do not like being held hostage to do what the shady buyers want us to do in fear of negative feedback...that brings me to We take the time to issue a complaint about receiving Neg feedback (the 2-3 we have got) but NEVER hear back  nor has it been removed...Why even have it?

Message 1 of 19
latest reply
1 BEST ANSWER

Accepted Solutions

Losing Money on Shipping for returned item

Thats why there are auctions out there with no Description only pictures...LOL good for them!

View Best Answer in original post

Message 6 of 19
latest reply
18 REPLIES 18

Losing Money on Shipping for returned item

Unfortunately this is part of doing business on eBay.  You have to adjust your prices accordingly to account for how many returns you get.

Member of the Grumpy Old Man crew
Message 2 of 19
latest reply

Losing Money on Shipping for returned item

If you charge for shipping you get the option to not refund shipping unless they file INAD.

Hence a major reason I dont do free shipping.

 

As far as "no returns", thats a myth, there is no such thing.

Message 3 of 19
latest reply

Losing Money on Shipping for returned item

It's pathetic that a seller gets hosed for offering free shipping.

Message 4 of 19
latest reply

Losing Money on Shipping for returned item

You should have thought about this before offering free shipping. The restocking fee is how you recoup the original shipping cost when you offer free shipping. You can only have a maximum 20% restocking fee so if your shipping cost is more than 20% of the item price, ditch the free shipping. Are you getting FVF credits when you issue the partial refund?



One life is all we have to live
Love is all we have to give

**Formerly known as MissJen316**
Message 5 of 19
latest reply

Losing Money on Shipping for returned item

Thats why there are auctions out there with no Description only pictures...LOL good for them!
Message 6 of 19
latest reply

Losing Money on Shipping for returned item


@f1shindude wrote:

that brings me to We take the time to issue a complaint about receiving Neg feedback (the 2-3 we have got) but NEVER hear back  nor has it been removed...Why even have it?


None of your negative feedback seems to qualify for removal

https://pages.ebay.com/help/policies/defect-removal.html

Automatically removed

Automatically removed

We automatically remove defects, adjust your late shipment rate, and remove feedback when:

  • The buyer didn't pay for a purchase and an unpaid item case is recorded against the buyer.

  • The defect, feedback, or late shipment was the direct result of an eBay site issue or program error.

  • The delivery estimate shown in the listing was shortened, but tracking shows the item was delivered by the carrier's longest delivery estimate.

  • We take action against a buyer for violating the Buying Practices policy.

  • We take action to close an eBay Money Back Guarantee case or appeal request in favor of the seller.

  • We instruct you to hold a shipment or take action to cancel the transaction.

  • We can determine through valid tracking that the defect, feedback, or late shipment was the direct result of systemic delays in shipping or communication. Examples include wide-scale shipping carrier delays, items stuck in customs, or power outages due to extreme weather. Actual qualifying events are listed on our announcement board.

Message 7 of 19
latest reply

Losing Money on Shipping for returned item


@f1shindude wrote:
Thats why there are auctions out there with no Description only pictures...LOL good for them!

and a buyer can STILL file an SNAD on them...

Message 8 of 19
latest reply

Losing Money on Shipping for returned item

You have a 30 day return policy which means you accept returns for any reason. The buyer doesn't need to have a valid reason.  You shouldn't have a return policy on As IS items.  A buyer can still file a nad on an as is listing but it is a little easier to fight a return.

 

I think that most buyers realize that some people are going to give a negative regardless so a negative in itself may not be a detriment.  What is a detriment to me though is when a seller responds to a negative by blaming  the buyer.  It makes me wonder how that seller would react if I had had a legitimate problem with a purchase.

 

Message 9 of 19
latest reply

Losing Money on Shipping for returned item

The cost of lost shipping is deductable as a business loss on your taxes.

Message 10 of 19
latest reply

Losing Money on Shipping for returned item

A smart buyer would simply file a SNAD complaint to avoid the restocking fee.

Message 11 of 19
latest reply

Losing Money on Shipping for returned item


@f1shindude wrote:

We ship an item out (Free Shipping) it costs us $12.05 to ship its a $30.00 item. Ebay allows the return process to start even though the return is not a valid reason. Ebay gives us no option to deny this claim (hatchet not sharp) so we accept the return they get dinged with a 20% restocking fee = 6.00 we are out the other 6.05. This of course is an example but have been running into alot of this as well as being held hostage when we add shipping to the auction to reduce our shipping so they can pay and there is no way to report this shady activity that I know of until the person has paid or canceled their order. We  also notice buyers say this is wrong or its a little bent or something minor and ask for a replacement even though the item is sold as is. Do we just say NO RETURNS Period we value our feedback but we do not like being held hostage to do what the shady buyers want us to do in fear of negative feedback...that brings me to We take the time to issue a complaint about receiving Neg feedback (the 2-3 we have got) but NEVER hear back  nor has it been removed...Why even have it?


You're lucky, they obviously didn't open the right kind of return or you would been out original shipping, return shipping AND you would not be able to collect your restocking fee.

 

To answer your question though, a "No Returns" policy is your best protection against fraudulent SNAD returns. ANY return policy, eBay will always allow the return (which this was not, but rather a buyers remorse return which you accept for ANY reason).

 

BTW, with "Free Shipping" there is no way to recover that (as you found out). I would change everything to "No Returns" and charge shipping IMO.

Message 12 of 19
latest reply

Losing Money on Shipping for returned item


@dakotasmoke wrote:

@f1shindude wrote:
Thats why there are auctions out there with no Description only pictures...LOL good for them!

and a buyer can STILL file an SNAD on them...


BUT they are MUCH easier to win. The seller never claimed anything, the buyer assumed it all.

Message 13 of 19
latest reply

Losing Money on Shipping for returned item


@sam9876 wrote:

A smart dishonest buyer would simply file a SNAD complaint to avoid the restocking fee.


^^^I believe that's a more approprite adjective to use in that sentence.

Message 14 of 19
latest reply

Losing Money on Shipping for returned item


@a*river*runs*through*it wrote:

The cost of lost shipping is deductable as a business loss on your taxes.


Maybe you mean the cost of return shipping.

Your accounting for taxable income should have already been reduced by the original shipping.

Taxable Income equals = Sales Revenue - cost of goods sold

The cost of goods sold includes original shipping cost.

 

Google COGS (Cost of goods sold)

I hope your not paying taxes on the total of your paypal revenue.

 

 

Message 15 of 19
latest reply