Sunday, June 3, 2012

Buyer return postage

Sort of an ongoing series here.

It costs $1.64 to ship a $20,  up to  3 oz package, anywhere in America.

However, it costs buyer $4.65 to return the package, being reimbursed by seller.

Would it buyer choose to pay $4.65 if seller wasn't paying return shipping?  We're not sure, and it's not cost effective to run the experiment.  The cost of a negative star well exceeds that extra $3.

The $3 breaks down into three parts.
1. 31c postage difference between ebay shipping vs over the counter.
2. 85c delivery confirmation vs free from ebay shipping 
3. $1.85 insurance to cover a $20 package.


The latter is especially galling.  In the highly unlikely event that the insurance needs recovering, seller's going to end up on the hook for the refund anyway.  It adds nothing to buyer's protection.


It's tempting to manage this equation.  Ideas:


a. offer "up to $3.00" to cover return postage.
b. request that no insurance be purchased
c. offer to refund regardless of whether buyer purchases delivery confirmation


The problem with any and all such ideas is that they're shown economic nonsense.  Seller is willing to refund $25, but will become confrontational over $27?  


Buyer wouldn't like that, and the resulting neg star could cost seller $hundreds.  


Just not worth it.


The best we can hope for.


-Treat each buyer with great respect
-Hope for Ebay to provide a way to score buyer returns.



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