re-stocking fee for returns

Hi there,

There doesn't seem to be anyway to process the reduction of a re-stocking fee from a refund. The 2 options are item cost refund or item and postage refund. Is there any point in listing a re-stocking on the listing if it is not really able to happen....

I am happy to give buyers the opportunity to return for any reason, but it is costing me a lot & a estocking fee would defray some of the costs.... any ideas?

I thought of charging  for postage and refunding posting cost if they keep the item - sounds mad I know, but the return costs should really fall on only those who are returning because they didn't fancy it...

Thanks for any insight & help!

PS I have currently REMOVED the restocking fee, as when buyers returned there was no option to subtract the 10% - the only options were `refund' item cost or refund and add refund original postage. I contacted ebay & they said they are the only alternatives, so I wondered what is the point of putting in a re-stocking amount if the seller cant actually put it in practice...... just thought others may have a method for implementing their re-stock charge????
Thanks so much

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re-stocking fee for returns

Personally, I will never buy from any store that charges a "restocking" fee.

 

So what if you have to take back an item - that's part of doing business.

 

In the 14 years I've sold on this platform I have had less than a dozen returns and would never dream of charging this ridiculous "fee".

In my opinion there is absolutely no justification for it.

 

Please explain how it is "costing you" and why you feel you need to charge someone for simply being in business.

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re-stocking fee for returns


@cushioncovers wrote:

In my opinion there is absolutely no justification for it.

 

 


I can't speak for the OP, obviously, but I will speak as someone who doesn't charge a restocking fee, but has been tempted to and understands why others do.

 

A restocking fee is to help cover otherwise non-recoverable outgoing costs that happen as a direct result of a specific purchase that is returned, rather than a general cost of doing business. 

 

For example, sellers listing with "free postage" may charge a restocking fee so the outgoing postage costs aren't a loss on change of mind returns. Sellers who customise items in some way but can recover / reuse materials, or re-sell an item (but not as new) may also charge a restocking fee to compensate for the loss in value of the item. sellers who put in X amount of time for their sales and don't like it wasted on change of mind returns may also charge a restocking fee (eg say there's some design involved, and they want to offer returns rather than flat out refuse them, so this becomes a compromise). 

 

I personally accept change of mind returns on all the earrings I make, but I would never send out the same pair of earrings without changing the hooks or studs, whether the sealed bag looks like it's been opened or not. A seller who does similar with precious metal jewellery may charge a restocking fee to cover the cost of replacing parts to make the item sale-able again.

 

Recently, I had someone buy 2 of an item that comes in packs of 5. After I posted it, they said they made a mistake and only want 2 pieces, whereas by buying 2 lots they purchased (and were sent) 10 pieces. I said no problem, return the pieces you don't want and I'll issue a refund for them. As mentioned, I don't charge a restocking fee so I refunded for the unit price for the pieces they returned, but it meant they got a much lower unit price than I would have provided if they contacted me first and said I only want two, because there are the same fixed costs on a sale that make up a greater percentage of the price on 2 than they do on the price for 5. A restocking fee would have been appropriate there. 

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re-stocking fee for returns


@alexpop51 wrote:

Hi there,

There doesn't seem to be anyway to process the reduction of a re-stocking fee from a refund. The 2 options are item cost refund or item and postage refund. Is there any point in listing a re-stocking on the listing if it is not really able to happen....

 


I don't have any experience with implementing a restocking fee, but it should be able to be deducted from a refund if it's part of the return policy set up on ebay. I did a little googling and someone on a 2-year old US thread suggested that it won't work unless you've opted into hassle free returns (a phrase I remember [vaguely] popping up on my seller account, and being asked if I want to opt into eBay's return process). 

 

Looking through my site preferences now, I can't see that question anywhere, but there is a section to set up some automated rules under return preferences, they allow you create rules under which a return request will be automatically approved and / or refund granted, so I never switched them on, and can't say for sure if the other person is correct and this is somehow tied to restocking fees being implemented.

 

Then again, I'm sure there used to be a help page abot the restocking fee option, but it doesn't even mention it once on the new help page for managing returns ( https://www.ebay.com.au/help/selling/managing-returns-refunds/handling-return-requests?id=4115 ), so I can't say for sure what's happening with it. 

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re-stocking fee for returns


@cushioncovers wrote:

Personally, I will never buy from any store that charges a "restocking" fee.

 

So what if you have to take back an item - that's part of doing business.

 

In the 14 years I've sold on this platform I have had less than a dozen returns and would never dream of charging this ridiculous "fee".

In my opinion there is absolutely no justification for it.

 

Please explain how it is "costing you" and why you feel you need to charge someone for simply being in business.


The main issue as i see it is does ebay allow people to charge a restocking fee or doesn't it.

From everything I have read lately, it has sounded as if ebay does not particularly love the concept of restocking fees but does allow them  & even suggests that if a seller has them, they are charged when, for example, goods are returned in damaged condition etc

 

So if ebay officially allows them, then it is ridiculous if there is not a clear cut way for sellers to implement the fee.

 

Alexpop's questions are very relevant.

 

Alex said:

the only options were `refund' item cost or refund and add refund original postage. I contacted ebay & they said they are the only alternatives, so I wondered what is the point of putting in a re-stocking amount if the seller cant actually put it in practice.

 

Personally, Alex, I don't think it would be a good idea to add a price onto your items & say you will refund them the postage costs later if they keep the item. How long would you be willing to wait before refunding anyway? Buyers have up to 180 days in some cases to make a claim.

 

Nope, better to  just charge a price that will completely cover you enough to give you profit plus a little bit extra for things that occasionally go wrong.

 

Cushioncovers, you asked why anyone might charge a restocking fee for taking an item back as it is part of business. Yes, it is, in many cases. But at bricks & mortar shops, I have always had to take my item in myself to show them & get either a refund, exchange, credit note etc

 

Most of the online places I buy from will pay return postage costs for faulty items. That's not an issue. But a change of mind return is different & some sites spell out that the buyer pays return postage.

 

I think where the restocking fee will need to come into play will be for sellers who opt into any ebay system where a buyer can return their goods for any reason & the seller will pay the return postage.

When you think about it, why should any seller be up for 2 lots of postage costs for a change of mind return?

 

I buy from COTD where there is indeed free postage to send back items (it is not automatic, you need to contact them- apply to return the item & get that approved). I imagine the restocking fee is there for 2 reasons.

1. To make consumers aware there is some cost involved in the process, so they will only go ahead if they are serious about it.

2. To cover the extra cost of providing free return postage.

 

I think it is fair as it only affects those buyers who use the return process. That way the overall postage cost or item cost doesn't have to go up for everyone to cover these expenses.

 

The trouble, as I see it, is some sellers are more likely to be affected by change of mind returns. Shoes, clothes etc probably carry more risk than some other things.

 

 

 
 
Message 5 of 11
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re-stocking fee for returns

Thanks so much! I have tried to find re-stocking fee in any policy or guide on eBay on it has indeed disappeared! Alex
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re-stocking fee for returns

Thank you!
Yes, this is very similar to the situation I have. e.g. Buying 3 sizes and sending 2 back. Once something is out of the packaging, tried on, rolled into a ball and squashed into the smallest possible postpack for return I dont re-sell it as new - it doesnt look brand new to me, so I wouldn't expect anyone else to recieve it as `new' XX Alex
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re-stocking fee for returns

Yes, these are exactly my concerns - there is a cost involved for seller for change of mind. Speakng personally I dont re-sell returns as new because they always look a bit shabby when they are out of packaging, tried on, put in a different (usually smaller ) bag and come back through the post. Often they will have a mark or smell of perfume etc. I find it safer to just give them to friends generally.

Thanks so much- you have fully understood what I'm discussing- if  `do you charge a re-stocking fee' is on the ebay listing proforma then there should be some way to actually do so! It could then easily be waived if the item was returned neatly etc.

XXXX

Alex

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re-stocking fee for returns

Yes Alex, that is the heart of the matter.

If ebay or any company says something is available, then it should be.

 

It doesn't mean every seller has to apply it if they don't wish to, but the key point is that companies follow through with what they say is available.

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re-stocking fee for returns

I never charge restocking fee either. Less than 0.1% of my transactions were returned on change of mind, so it's not worth losing sales by saying you charge restocking fee. Usually, if the buyer changes their mind, they will just say something is wrong with the item anyway, so why aggravate and punish the honest ones.

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