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Charging for returned non faulty items

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  • Charging for returned non faulty items

    Hello and happy new year. I have had a couple of cases of people returning items that are not faulty or misidescribed but just not quite what the customer wanted so I wondered if one should charge a restocking and admin fee. I would usually just give a full refund but gather some people charge a restocking and handling charge. If you have any thoughts I would be grateful to hear from you.

    Regards

    Lawrence

  • #2
    To comply with distance selling regulations, you have to give the customer at least 7 days to change their mind...(there are exclusions from this, such as bespoke and personalised items) have a look here... http://www.oft.gov.uk/business-advic...D4966FB329C630
    You need to put your terms for refunds and returns somewhere on your website. For example I have that goods can be returned within 7 days but the customer must pay return postage unless item is faulty. I suggest a signed for service is used also. If you plan to charge a restocking fee, (which would put me off buying personally) make sure you put it in your terms. But I'd read through the DSR's to make sure you're allowed to make this charge.
    Hope this helps
    S x

    P.S Just checked and you are NOT allowed to charge a restock and/or admin fee I'm afraid.
    Last edited by Loody; 01-01-2013, 08:16 PM.
    Sarah x

    ~ The Lilac Dragonfly- Handmade Jewellery ~

    ~ Facebook Page ~




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    • #3
      Think Sarah is right, as far as I'm aware you can only charge a re-stocking/admin fee if you are selling B2B and obviously it has to be in the t&Cs.
      Visit Natty Netty for a huge selection of Iris Folding supplies

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      • #4
        Pretty much what Sarah says.

        However, to clarify, the customer has seven days from the date of delivery to say they wish to return the goods, not the day of despatch. They do NOT have to return the good in the original packaging.

        Also, you have to refund the postage cost they paid for with the goods. So if you charges £2.99 for postage on the original order, you must refund that £2.99.

        Restocking fee, if they return outside of the time dictated by the distance selling regulations, I don't see why you can't.

        Another interesting fact I picked up (from the BBC I think - I'll try to find a link later) is that if the customer has examined the goods before buying them mail order, they are not entitled to a refund.

        Lenny.
        ~~The old ways are the future~~

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        • #5
          Here we go: a link from the BBC: http://www.bbc.co.uk/news/business-19910561
          Also, have a look at the OFT video: http://www.youtube.com/watch?v=DVzuE...3&feature=plcp
          And http://www.moneysavingexpert.com/sho...funds-exchange. Scroll down to the section RETURN REASONS ALLOWED.
          ~~The old ways are the future~~

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          • #6
            Quote from above site... "You are not allowed to make any further charges, such as a restocking charge or an administration charge."
            Sarah x

            ~ The Lilac Dragonfly- Handmade Jewellery ~

            ~ Facebook Page ~




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            • #7
              Originally posted by Lenny View Post
              Also, you have to refund the postage cost they paid for with the goods. So if you charges £2.99 for postage on the original order, you must refund that £2.99.
              Yep it's only the cost you charged for P&P that has to be refunded and not the amount they paid to return it to you although a lot of the bigger companies will offer free returns but then I guess they can afford to do so (or can't afford not to!).

              Of course if it's faulty then you must pay for it to be returned too although I've seen many ebay sellers completely ignore this.
              Visit Natty Netty for a huge selection of Iris Folding supplies

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              • #8
                Originally posted by nattynetty View Post
                Yep it's only the cost you charged for P&P that has to be refunded and not the amount they paid to return it to you although a lot of the bigger companies will offer free returns but then I guess they can afford to do so (or can't afford not to!).

                Of course if it's faulty then you must pay for it to be returned too although I've seen many ebay sellers completely ignore this.
                As long as it's in your terms that buyer pays return postage.... if it's not I think you are liable.
                Sarah x

                ~ The Lilac Dragonfly- Handmade Jewellery ~

                ~ Facebook Page ~




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                • #9
                  But let's not ignore good customer service and good will and customers coming back for something different and spreading the word about how nice you are to deal with.

                  I'm all for force a smile, the customer is always right, keep them sweet.

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                  • #10
                    Indeed.
                    And just to make clear, the law over-rides anything you may put in any terms and conditions. For any straightforward sale on the internet etc the customer gets a full refund no matter what the reason. That's cost of item and all postage charges, there and back. I always think that latter is a bit of a swizz as we don't get bus fare or mileage when we take back to a shop, but that's the law
                    The exceptions are things like earrings or knickers for hygiene reasons or commissions and the like.

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                    • #11
                      Originally posted by Pearlescence View Post
                      For any straightforward sale on the internet etc the customer gets a full refund no matter what the reason. That's cost of item and all postage charges, there and back.
                      I'm pretty sure that's not the case although too busy to try and find the document where this is stated. As far as I'm aware as long as you have it in your T&C's it's the customer's responsibility to pay to return something if it's not faulty - there are some VERY big stores out there that do this and I can't imagine they'd be able to get away with it if it was against the law.
                      Visit Natty Netty for a huge selection of Iris Folding supplies

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                      • #12
                        Many thanks. I'm sure I have seen people charging for restocking. Anyway it looks like we have to give a full refund but its only once in a blue moon.

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                        • #13
                          From the Office of Fair Trading
                          http://www.oft.gov.uk/shared_oft/bus...ral/oft913.pdf

                          Returning goods
                          Only if it is covered in the contract and the written information
                          can you require the consumer to pay for the cost of returning
                          the ordered goods. If the consumer then fails to return the
                          goods, or sends them at your expense, you can charge them
                          the direct cost to you of the return, even if you have already
                          refunded the consumer’s money. You are not allowed to
                          make any further charges, such as a restocking charge or an
                          administration charge.
                          Also you must show clearly a return address which cannot be a box number and there are other rules too - many of which are ignored or not even known about by many websites, large companies and 'hobby' sites.
                          careful reading of the whole document is recommended

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