"Restocking Fees"

BigD5

I think we have all noticed an increase in "restocking fees" in sellers terms on Ebay, concerning returns, and may have been wondering why.
Ebay will end auctions with return terms that state "Paypal fees will not be refunded", or similar terms. The way to get around eating the paypal fees on returned items as a seller is to state that there will be a 3(?)% restocking fee on returned items, that will be waived if the item was paid for by check, money order or similar funds. Stated that way, Ebay won't yank the auctions. The other way, if someone notifies Safeharbor or Ebay themselves, your auctions will most likely be pulled.
I had one auction pulled a couple of months ago, and have been going back and forth a bit since then. I guess this is how things are going to have to be worded from now on.

TomB

Just to let you know, I won't bid on an auction that has a re-stocking fee and will not normally even look at that seller's items. There are more than one members of this Board that have re-stocking fees and I won't bid on their coins.

RLinn

<< <i>I won't bid on an auction that has a re-stocking fee >>

Tom, wouldn't the restocking fee be just like any of the other auction add-ons (s/h, juice, etc.)? Why wouldn't you just take them into account when placing a bid?

Petescorner

EBay has some strange policies regarding what you can and cannot say in your auction. For example:

Not allowed
$4 Fixed Shipping. $1 more for using PayPal

Allowed
$5 Fixed Shipping. $1 Discount for paying with Cash, Check, or Money Order

Dog97

I can see a restocking fee because the dealer has to pay a helper to receive the coin, inventory it, and restock it.
But how long does that take, 5 minutes?
It sounds like a CHEAPSKATE way to be and a way to double dip in the fee refund.
I avoid those auctions too.

RotatedRainbows

I also try to avoid these auctions especially since PayPal has increased the time a seller has to refund your payment WITHOUT any fees being charged to either party from 14 days to a FULL 30 DAYS.

wallstreetman

In other words, they dont accept returns!

BigD5

If RotatedRainbows is correct, then there shouldn't be a problem. I was under the impression that you lost the Paypal fees on returns. So if the buyer is only out the initial shipping costs, I'm sure that can be negotiated with most buyers, or just "eaten" by the seller.
Tom, I can understand your position concerning restocking fees, but on credit card/paypal sales that are returned, are you, as a seller willing to "eat" the credit card/paypal fees? If we're talking $100 coins, it isn't that big a deal. You get into $500+, and we are talking a different animal. Again, this is a mute point if paypal doesn't charge the fee on returns, which I will have to check on, and wasn't aware of that policy.
Ebay support suggested this terminology in response to one of my auctions being cancelled because I listed "5 day return privelage, less return shipping and paypal fees." Apparently that statement is against Ebay rules. They suggested "3% restocking fee on non check/money order payments in which the items are returned."

Pushkin

I got Neg'd on eBay earlier this year from a seller who charged a 50% restocking fee (it wasn't mentioned in the description or the seller's terms and conditions). The coin was corroded and cleaned (on the reverse) but the seller only showed the obverse on the description photo.

I complained to eBay about it - their "investigation results" was an email to me suggesting that I contact the seller again (would have been my fourth attempt) and try to work the situation out! The seller's response ("I posted a picture; keep the coin or accept a 50% restocking fee, you clown!).

I got pee'd off and neg'd the seller; received a nice retaliatory neg in response, and a second email from eBay advising me that there was nothing to indicate any improper action on the seller's part; thank you very much for using Safe Harbour.

Anyway, there may be some justification in some cases for a restocking fee (I have not problem reimbursing a seller for postage/handling/insurance, etc.), but I refuse to purchase from any seller that imposes these "additional fees".

presleyh

Restocking fees are a normal business practice in the restaurant equipment business. I hate it but they are normally 20%. It really makes you think about buying things, especially special order items.
Normally i just put an item in stock instead of returning with a restocking fee. Otherwise i would lose freight both ways plus 20%.

RotatedRainbows

If RotatedRainbows is correct, then there shouldn't be a problem. I was under the impression that you lost the Paypal fees on returns. So if the buyer is only out the initial shipping costs, I'm sure that can be negotiated with most buyers, or just "eaten" by the seller.

As of Aug. 21, 2002 the PayPal policy was changed to allow refunds WITHOUT fees up to 30 days after the initial payment date.

indianabyron

I for one will never charge a restocking fee. My guess is the ones that charge it are also the ones that are selling junk and they know its junk they know its going to be returned so they figure if its going to be returned there is a way to keep part of the money wham bam thank you mam the restocking fee. Any seller that is a worthy seller will stand behind their product with no restocking fee. I also when selling only charge shipping fee's once for multiple auction I dont rehit the buyer for multiple fee's Anybody that does im my honest opnion is nothing but a crook they are breaking the spirt of ebays rules and as we all know ebay is right there defending their rules. I will never bid on an auction with restocking fee's and im very careful about the auctions with you have to pay shiping for all the items even though they are going to be sent the same box . some people are more then happy to rip others off


Byron

TomB

Getting stuck with PayPal fees on returned coins is a cost of doing business. Period. There are many other convenient ways one may accept payment if one is willing and these include personal checks, bank money orders or postal money orders. There are very few instances where using an electronic payment is the only way to sell the item. What sellers want is the money as quick as possible without having to risk a few percent fee if the coin is returned. I think that is a bad business policy and absolutely reeks of giving it to the customer. If you are willing to wait a week for payment you may avoid these possible return fees; it is your choice. However, if you choose to stick an unhappy customer with a fee that is borne out of your own convenience or greed then I have little incentive to work with you. Viewing it another way, when someone lists a re-stocking fee my immediate thought is that the coins in person don't look nearly as nice as the images and so the dealer is expecting a fairly high rate of return. There is no way I will bid under those circumstances. There are far too many sellers on ebay to be forced to deal with someone who is either manipulating the auction image to pump up bids or who has that little care for the customer and wants the customer to take all the financial risk.

I had to edit this post because I wrote a sentence backward. I am a dolt.

psxchelly

No seller that sells certified coins is EVER stuck with Paypal fees. All the seller has to do is state that if any items are returned, non paying bidder alerts will be filed. I have had it done to me after i have returned an item... and i will surely do it to anyone that returns a certified coin.

Clankeye

I have seen the "re-stocking fee" used by a few members of this board and been curious about it. I know some of these guys are the equivalent of vest-pocket eBay dealers. Basically, no different than me when I sell a coin on eBay. They may even have a website they operate with too, but it is my experience they are closer to me, a collector who sells coins, than to say, David Hall, or Bowers and Merena. Re-stocking fee? Someone sent the coin back. Offer it again.

The first-class coin sellers will take a coin back, no problem, no fee. Some of the first-class sellers you develop a relationship with, will send you a coin on approval, let alone ask a re-stocking fee if you send it back. Whereas, I know for eBay that is not a feasible way of doing business, I marvel at the number of sellers out there who add so many hoops to jump through to do business with them, that they virtually insure that I wouldn't bid in their auctions.

Just in case any one is keeping score. Re-stocking fees put me off enough, that I will avoid an auction. Nobody has to agree with that, but that's the way I feel.

andy007

As Tom said, the Paypal fees and other Ebay fees are associated with doing business and something that the seller must concern themselves with when using Ebay. I also will have nothing to do with anyone who charges a restocking fee, it is absurd to ask that of someone bidding.

gemseeker

Restocking fees remind me of those return charges for software and computer related items that I see with many online retailers. It is a just a underhanded attempt at discouraging people from returning an item. I will only deal with those sellers only if I really wanted the item and it wasn't available elsewhere and the price was a terrific deal.

Morganluver

I absolutely agree with indianabyron and TomB. "Restocking" fees smell of something fishy and is just bad business. Heck, even Circuit City and Best Buy stopped doing it because it was hurting their business. Once again, the "Golden Rule" certainly applies here.

MrD

BigD5

You gotta love the passion on this board!!!

RotatedRainbows is correct. There are no fees associated, through paypal, if the item is returned within 30 days. The seller is out the shipping costs, which they should absorb.

I guess I was trying to explain why we will/are seeing more sellers listing items with "restocking fees", and how the concept has taken off a bit on Ebay.

Morganluver

My guess, as a couple have already postulated, is that sellers who have a restocking fee either offer inferior coins(lacking eye appeal or low end) or greatly enhance their images creating a very unpleasent surprise when the buyer receives the coin. These sellers have realized that very few of their transactions "stick" and therefore have instituted a method by which they can still make $5-10-20 or more and still keep the coin. What a racket! These people obviously don't care about any kind of repeat business or long term relationship with buyers, just a quick unethical buck. Sellers who honestly try to properly represent items for auction with decent pics and descriptions and who offer a fair return privlege and reasonable shipping charges probably don't get many returns. If you, as a seller, get too many returns then something is being misrepresented. One area which is ripe for returns is the toned coin market( mostly what I sell) due to enhanced pics. I put forth every effort to properly describe and picture my coins and I'm proud to say that I can count on one hand the number of returns I've had in the two plus years I've been selling on E-Bay. If I can do it anyone can. I'm no rocket scientist or computer wizard, just honest and fair. I will never require a restocking fee or overcharge for S&I and would like to be treated in like fashion.


I also would like to say that I don't think every seller who charges a restocking fee sells subpar stock or enhances their pics but they are definately hurting themselves.

braddick

Restocking fee? I dislike that strongly, but knowing others do too and just might skip over the auction because of it, I look twice and have found the occassional bargain because of it.

I've never returned a coin yet I found on eBay. The 'Restocking Fee' means nothing to me other than the principle behind it.