What do you do when you get a $3,000 return request from an eBay sale?
We get this question a lot. People are concerned about selling high value items because they don’t want to have to take returns on those high value items if somebody claims it’s “not as described.”
We just had a return request on a large eBay sale so we’re going to walk through it and share what happened.
In general, we don’t have a lot of returns. This is the first one we’ve had in two years. The best part is that it wasn’t a return, it was damaged in shipping, so there’s a process to go through. We don’t get a lot of returns because the clientele that we sell to generally want the item to work if they’re willing to spend $1,000-$2,000 on the item. They’re not trying to deal with the hassle of a return; they want the item and they want it to work. We don’t get a lot of return requests for that reason.
Dealing With The Return Request
This return request was for an oven that we sold. We paid $120 for it on our way back from a trip to the Florida Keys. It sold very quickly after listing it, within two weeks and we sold it for $3,000 plus $400 for shipping. We shipped it out and it got damaged in shipping. This is our first pallet in 10 years that was actually damaged.
The buyer got it and said “Hey, it’s damaged. The bottom drawer got bent. It’s not working right.” I gave him two options. I asked if he wanted a partial refund to where he could fix it or a full return. He thought about it for a day or two and said, “No, I just want a refund.”
We use a freight shipping broker, so I called him. The company we use allows us to insure items even if they’re used. We had paid for insurance on it, which was an extra $30 on a $3,000 item. I insured it for $4,000 because I knew the freight charges and my time to package it up and I wanted to make sure we got that back if something happened.
I reached out to my freight broker and he worked with the insurance company to handle the situation on my behalf. It was amazing that I didn’t have to spend hours on the phone fighting for the insurance to kick in. We got the insurance check for $4,000 when we sold the item for $3,000 plus $400 for shipping.
Why Insurance Helps Reduce Returns
Insurance covered our time, our effort into palleting the item up, and the shipping,
The moral of the story is if you do this the right way, you will totally be covered when returns happen due to damaged in shipping. The people asking for refunds in these situations aren’t going to buy an oven and say, “I want to try this out and see how it looks in my kitchen.” They want the item. This buyer had the exact same oven that was worn out and wanted to replace it. Ours was in really good shape, but then got damaged and he didn’t want to mess with it.
Now we have the unit back and we can resell it gor parts or even with the dent if somebody wants it for less. The reason why a lot of freight doesn’t get damaged is because people aren’t picking it up; they’re using forklifts to move things around.
Another time we sold a Sleep Number bed for $500-$600 and one of the boxes got lost in shipping. We were not covered because we thought it was a mattress and couldn’t break. So we got the minimum $100 from FedEx or UPS but not the remaining $500 profit because they lost the item. Since then, we always get insurance on everything.
How To Reduce Returns
We always under promise and over deliver on everything we’re selling, which helps reduce returns. We want our buyers excited when they get the item, so I’m not making false claims. Never say mint condition. List out issues like scratches or normal wear and tear and photograph them. Then always get insurance so you are protected if something does happen during shipping.
Another tip is to take pictures after you package something and put them in a file until the person has the item. You might need to prove you did an appropriate packaging job to FedEx, UPS, or whoever you ship with. Take pictures or even a video of the packaging process showing the peanuts or bubble wrap being added.
Another tip is to always keep a reserve amount in your account so you have the funds should you actually need to issue a return.
You can do this business without stressing about returns if you protect yourself with insurance, accurate listings, and a little bit of padding in your account.
Show Notes
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