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With all the talk about returns and ebay wanting us to offer “free returns” etc I though this would be relevant. Its a short video, but highlights a somewhat “underground returns database” that few consumers know exist.
The video highlights bestbuy, but other stores are using this database too. I remember about 10 years ago bestbuy was trying to market this data to other businesses so they spun this off or they gave up on their initial idea and another company took it over.
Another thing about bestbuy is they will not refund more than $100 in cash even if you paid in cash. You have to wait for them to mail you a check from corp office.
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My sister-in-law and her friend do retail arbitrage. They will put something up on eBay for basically the return period of the store minus a few days, and then return it if it doesn’t sell.
Her friend did have issues with the store not allowing her to return items after she had racked up too many. She started using cash instead of credit cards. I haven’t talked to her recently, so I don’t know whether the cash returns got her into trouble as well.
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the way I look at it, it really doesn’t matter whether they are industry practice or not. what matters is : what are the pros and cons for me to implement a particular return policy? Same question I’d ask on ebay, Amazon, etsy or anywhere else.
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I’ve used that retail arbitrage strategy before too, mainly with Target. I have a Target red card so that may make a difference. I haven’t had any returns refused yet.
I’ve done it at Walmart too, but so far no issues. I do not return large amount of items though. Perhaps $100 worth or under.
I never tried with bestbuy or any other store and probably won’t for fear of getting stuck with inventory.
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Gompers, I guess what I’m saying is, that’s a non-issue for me. Doesn’t matter to me if ebay says this is a retail standard or simply: this is our new policy, we aren’t going to explain why we think it’s good, here it is. Either way, I need to focus on my business, the retail standard thing just becomes a distraction. I don’t care what Best Buy does, I care about what I think will work for me, and I’ve got to figure that out within the framework of whatever marketplace I’m on.
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It seems odd to me that most people here, myself included, don’t like the idea of people “renting” the items we have for sale by returning them. Then I read through a conversation where about doing the exact same thing to another business…
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Ryanne, I think shayward is referring to this thread’s conversation, where ebay sellers acknowledge basically “renting” items from Target etc to offer on ebay…if they don’t sell within the store’s return time limit, they return them for a refund. From Target’s perspective, how is that any different from an ebay buyer buying something from an ebay seller , say, a magazine, photocopying an article they want and then returning it? eBay sellers complain about that sort of thing all the time, but some ebay sellers think nothing of doing something very similar when they engage in retail arbitrage. When an ebay buyer does it to an ebay seller, they are a “bad” buyer, but when an ebay seller does it to Target, its just smart business?
At least, I think that’s the point shayward is raising.
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Yeah, was a little sleepy and had maybe had one or two beers too many last night when I wrote that…
MyCottage summed up my rather unclear thoughts perfectly.
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Just to be clear, I do not personally buy stuff for RA and then return it when it doesn’t sell. I was responding to the article and what I knew some people do. I think that most sellers here on the forum do RA with the same list it and forget it strategy as vintage items.
I think that my SIL doesn’t do it too much because she doesn’t have the time to return items back to the store. On the other hand, her friend is like a professional shopper.
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Your missing a big point and that is if I return something to Target because I couldn’t sell it within 30 days (aka, retail arbitrage) Target can still sell that item as new and at full price. Since I did not open or use the products in any way.
That is not what’s happening on ebay especially with clothes or shoes that are “new with tags.” If an ebay buyer returns a new item without tags or it was obviously used there’s no way the ebay seller can relist it as new and get full price.
That is why I always put restocking fees on “new with tags” in an effort to recover cost. Now ebay is taking that away too.
I wanted to point out the double speak ebay is engaging in.
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Returns are absolutely an industry practice. I can’t think of any retail store that doens’t have a return policy.
Most consumers are not going to run into problems returning items occasionally at JC Penney, Best Buy, Coach, etc. The return database is going after people that are chronic returners. These are the people that spend $2000-3000 on 10 purses at Coach, knowing they will return 8 or 9 of them 29 days later.
They can’t actually afford 10 purses, but they love the experience of shopping. They rationalize it by saying “It’s not like I used the purses. They are all still new-with-tags. Coach can just resell them later”. Those items aren’t always easy to re-sell, however, and a lot of returns end up on clearance at the outlet. Demand for the “must have” purse for spring is no longer there when the return comes back a month later.
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I agree with Gompers here if we’re simply arguing semantics: “Free Returns” in online retail is not the industry standard. Amazon doesn’t let you buy an item and get free return shipping if you simply changed your mind. I can only think of a few online retailers (Zappos) that lets you buy anything you want and return it free for no reason. They are edge cases.
Comparing to the return policies of a Brick & Mortar is not a valid comparison. Target doesn’t incur a postage charge when you walk in the store and return an item you don’t like. Their cost is just getting back on the shelf.
So I agree that I dislike eBay’s declaration that Free Returns is what everyone is doing. They should just be honest and say “Free Returns is not the standard but WE can make it the special service that only eBay provides among the big online retailers.” This would be more accurate.
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There is still a cost to Target, because of the labor involved in processing the return and getting it back out on the shelf. I’m sure Target considers retail arbitrage people who do this to be bad buyers, not that different from the complaints on this thread about eBay bad buyers.
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Your point though doesn’t take all factors into account. If the item purchased from the retailer is cut in price during that 30 day period then there’s not any way they can sell it for what the full price was. If the item was, in particular, an in demand toy at Christmas time then returned after the holidays then there’s no guarantee that the item will sell for what the original price was.
I have no personal problem with retail arbitrage, make money in whatever legal way works for you. But there’s certainly similarities in the positions of the seller, regardless of whether it’s an individual or a company.
While I agree that ebay saying that it is making changes that bring it in line with industry standards is pretty much complete BS, they do have the right to run their business however they see fit. Just as we as sellers have the ultimate right to run our businesses as we see fit. Whether the marketplace is digital or physical, the owner of the marketplace reserves the right to set the rules and policies of said marketplace.
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Here is the irony. When Top Sellers find it bad for the bottom line to offer FREE RETURNS, they will lose their Top Rated status and discount, and then there is really no compelling incentive to bend over backwards to meet any of the Performance Metrics (shipping time, defects, … ). This could blow-up in eBay’s face.
Even the 10% discount didn’t amount to more than $50/m on $6000 in gross sales.
And it should be mentioned, eBay and Paypal makes fees on the seller-paid return shipping do they not?
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PickingPair,
Ebay looses their FVF when a buyer returns an item and the seller refunds the buyer. Ebay is not worried that the seller will be loosing more than ebay will because they are banking on the thought that promoting Free Returns and mandating it will bring in more buyers and dollars than the loss incurred because of free returns.
Your point about the Top Sellers is correct. It seems that ebay is banking on Top Sellers wanting to hold onto the title and therefore caving to their self focused rule of having to have Free Returns. It is going to take those who have the title of Top Rated Seller and Top Rated Plus to let ebay know that this new stipulation is not okay and that the “other perks” are not adding up. Ebay counts on Top Rated Sellers to bring buyers to the platform, so if the number of them drops, it will negatively effect ebay but they think that Top Rated Sellers won’t give up their title.
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