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  Home Auction Resources & Tools Auction Tips & Tactics

 




Handling Returns


by Nancy L. Hix

Most business-to-consumer auction sites accept returns only on defective merchandise or products damaged in shipment. A few of them offer a no-fault return policy. It's important to check the site's return policy, if one is listed, before placing a bid.

At person-to-person auctions sites, such as eBay or Gold's Auction, sellers who offer a policy for returns attract bids by putting potential buyers at ease. It's an implied guarantee of customer satisfaction, and a panacea for those still leery of buying merchandise through online auction venues. Many auction sellers refer potential buyers to their personal page, such as an AboutMe page on eBay, for information about how they handle requests for refunds or exchanges. Other sellers include this information in an auction's description.

From a buyer's perspective, how a seller handles returns often can help determine whether a bid will be placed.

Standard Return Policy

A seller's return policy should get right to the point: "I accept returns if you notify me within three days after receiving the item. I will issue refunds within 30 days, and only after I've inspected the returned merchandise."

Be sure the policy is clear and understandable. If you refer buyers to an information page, be sure it's a direct link. Don't make your customers hunt around. Be aware that buyers may have more confidence in a return policy stated right in the auction description, since they know you usually can't change it once an auction closes.

Seller's Position

It's probably the last thing you want to think about when you list an auction, but a stated return policy offers a few key benefits, including:

  • Bidder confidence

  • Implied customer satisfaction

  • Protection against unreasonable requests from the buyer

  • Up-front statement of policy if a complaint is filed against you

    Don't panic when an email arrives with "Need to return item" in the subject line. Not all returns are necessarily a bad experience. Occasionally, a buyer will return an item and request one of higher quality for an additional cost. Any online transaction that remains pleasant could lead to more business. However, don't let your caution down when agreeing to reverse the transaction.

    It's wise not to issue a refund until you've checked the item. Unless you know the buyer, never send a refund without the returned item in hand and verified. A seller should clearly reserve the right to take a specified amount of time--normally three days--to inspect the item before agreeing to proceed with a refund.

    Seller's Responsibility

    You need to settle a few things with your customer before he or she ships the item back. First, determine whether the buyer wants a refund or a replacement. If it's a handmade item, agree in advance whether you'll accept the return, and specify whether you'll repair it or replace it. Above all, insist that the item reaches you in the same condition as it was sent, with the original packaging.

    When you receive the returned package from the buyer, unpack it promptly. Examine the item to be sure it's the one you sent out. (Be mindful of the buy and switch routine.) If the situation merits a refund, send the funds within the period specified in your return policy.

    If you're selling sealed products not visible through their original packaging, such as new electronic equipment or cosmetics, you almost have to take the buyer's word for it if the product was damaged or incomplete when it arrived. Denying a return may cost you future business, result in complaints about you to the site, or earn you negative feedback.

Buyer's Responsibility

Unpack and inspect all shipments as soon as possible. Notify the seller right away--within three days at the most--if you wish to return the item, and state why. Be sure to review the seller's return policy and comply with it. It's not right to return an item simply because you changed your mind about buying it. Request a return only if the item isn't what the auction description represented, or if it isn't in the expected condition. Decide whether you want a refund or an exchange, or if you wish to return the item for a better-quality one at an additional cost.

Once the seller agrees to accept the return, pack the item as carefully as if you were sending it to a customer. After all, you plan to receive money in return, so be sure it reaches its destination intact. Don't expect immediate recognition, especially if you're dealing with a high-volume seller. Include with the item all of the information about the transaction: the auction number, the item, the amount of the sale, and your name and address. This helps speed up the return process.

Who Pays Postage?

That depends on who made the error. If the seller graciously agrees to accept the return of an item accurately described in the auction description, then the buyer should pay all shipping costs involved with the return. If the auction description wasn't accurate or the item is incomplete or not working, then the seller should pay the postage.

Whoever ships the package is responsible for its safe arrival. Note that the post office can take 30 days or longer to reimburse for a lost shipment or to resolve an insurance claim. Some sellers prefer to refund a buyer's money out of their own pocket and settle with the post office in due time. This is a good-faith measure--certainly not an obligation.

What About Feedback?

As with any situation, posting or denying user feedback is a personal choice at most online auction sites. If the return is handled amicably and all parties are satisfied with the outcome, they can exchange positive feedback and move on. It's a lot better to reverse the transaction in an agreeable way than to have both parties leaving each other damaging reports.

While sellers must protect themselves against unsavory tactics, buyers should always read auction descriptions carefully. Contact the seller with questions about the item or about his or her operating practices before you consider bidding. If you don't get the information you need, pass on that auction. A similar item is bound come up again, hopefully in an auction run by a seller with clear policies.


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