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Thread: First Time Cafe Seller - Returns Cost Allocation

  1. #1

    Default First Time Cafe Seller - Returns Cost Allocation

    I'm going to be listing my Kentucky 950 soon and had some questions about selling on the Cafe...

    I'm planning to offer free insured shipping with 48 hour approval (and a Cafe donation).

    On PayPal I was planning to use the Goods and Services option with a 2.9% fee and fraud insurance for the buyer (but I assume some people use free Friends and Family as well, at their perceived risk).

    If the buyer returns it, for an $850 refund it's about $75 in costs ($25-30 shipping each way plus the $25 PayPal fee, which they don't refund).

    What is common practice on allocating return costs? Buyer pays return shipping only? Both ways shipping? Both ways shipping and PayPal fee? You split the total cost?

    Obviously anything is negotiable depending on buyer/seller motivation but the listings mostly don't get into these details.

  2. #2
    My Florida is scooped pheffernan's Avatar
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    Default Re: First Time Cafe Seller - Returns Cost Allocation

    I typically have listed instruments for sale with the explicit condition that a buyer will pay for shipping both ways in the unlikely event of a return. I have only had one come back, and I don’t recall losing out on PayPal.
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    Scroll Lock Austin Bob's Avatar
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    Default Re: First Time Cafe Seller - Returns Cost Allocation

    Quote Originally Posted by mandokismet View Post

    Obviously anything is negotiable depending on buyer/seller motivation but the listings mostly don't get into these details.
    This is really the key. Since you're the seller, you can set the terms of sell. And you're right, most ads don't spell it out, but in my view they should. That can certainly cause a lot of ill will in the event of a return.

    I think it's reasonable for the buyer to pay shipping both ways on a return, with the exception if the goods arrived not as advertised. If the seller didn't disclose a major repair, or if the item is damaged in shipping, I would not expect to pay as a buyer. I would want that in writing before I pulled the trigger on a major purchase.

    And this is why I don't mind the if the seller adds the PayPal fee to the price. They will stand behind the buyer in these scenarios.

    Finally, don't forget the Cafe donation, I like to see that in the ads because it adds a bit of integrity to the seller.
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  6. #4

    Default Re: First Time Cafe Seller - Returns Cost Allocation

    PayPal changed the fee refund recently.
    https://www.paypal.com/us/smarthelp/...vanced-faq3108

  7. #5

    Default Re: First Time Cafe Seller - Returns Cost Allocation

    Whatever the sale, terms should be spelled out. I recently completed a perchase with Bryan Kimsey, and with him having a UPS business account, he would have generated a call tag at his discount rate. This was spelled out in advance, plus I requested delivery so that my Thursday weekly play out would be within the 72 hour window, to witch he then extended the window to cover that possibility.

    For some reason, I do not respond to adds that have the buyer paying all the fees. It rubs me wrong. Id rather just have the seller take that into consideration. I have offered to split fees for my convenience. Buyer paying freight both ways protects the seller from less than serious prospects.
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  8. #6
    Registered User J Mangio's Avatar
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    Default Re: First Time Cafe Seller - Returns Cost Allocation

    My past sales on the Cafe spelled out buyer pays shipping both ways if returned.

  9. #7
    Registered User mbruno's Avatar
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    Default Re: First Time Cafe Seller - Returns Cost Allocation

    When buying from the classifieds, I assume the buyer pays shipping both ways unless they note otherwise. It's not feasible for them to include the variable shipping costs in the price IMO. The only exception I can see for a return is if the seller misinformed the buyer (i.e. listed the mandolin was perfect but in reality had a bunch of imperfections that changes what the buyer would have been willing to pay).

    Don't forget The Cafe donation BTW.
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    Default Re: First Time Cafe Seller - Returns Cost Allocation

    Beware of shipping costs these days. I recently shipped a mandolin west to east cost and it was $65.


    Quote Originally Posted by mandokismet View Post
    I'm going to be listing my Kentucky 950 soon and had some questions about selling on the Cafe...

    I'm planning to offer free insured shipping with 48 hour approval (and a Cafe donation).

    On PayPal I was planning to use the Goods and Services option with a 2.9% fee and fraud insurance for the buyer (but I assume some people use free Friends and Family as well, at their perceived risk).

    If the buyer returns it, for an $850 refund it's about $75 in costs ($25-30 shipping each way plus the $25 PayPal fee, which they don't refund).

    What is common practice on allocating return costs? Buyer pays return shipping only? Both ways shipping? Both ways shipping and PayPal fee? You split the total cost?

    Obviously anything is negotiable depending on buyer/seller motivation but the listings mostly don't get into these details.
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  11. #9

    Default Re: First Time Cafe Seller - Returns Cost Allocation

    Buyers usually pay the cost of shipping it back. Sellers usually refund the selling price. Easy math.

    Returning an item is an expensive nuisance, so even people who aren't 100% satisfied with what they get tend not to return the item.

    The clearer you are on the condition and quality of the instrument, the less likely it is to be returned.

    Are you sure you want to use Paypal? Some people love it. I've found that it just adds another layer of complication and cost.

  12. #10
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    Default Re: First Time Cafe Seller - Returns Cost Allocation

    Quote Originally Posted by Charlie Bernstein View Post
    Buyers usually pay the cost of shipping it back. Sellers usually refund the selling price. Easy math.

    Returning an item is an expensive nuisance, so even people who aren't 100% satisfied with what they get tend not to return the item.

    The clearer you are on the condition and quality of the instrument, the less likely it is to be returned.

    Are you sure you want to use Paypal? Some people love it. I've found that it just adds another layer of complication and cost.
    I prefer PayPal as a buyer for my protection, and as a seller also for my protection, with all of the forgeries of cashier's checks/bank checks I've heard about. Plus convenience...

  13. #11
    Martin Stillion mrmando's Avatar
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    Default Re: First Time Cafe Seller - Returns Cost Allocation

    Quote Originally Posted by mandokismet View Post
    PayPal changed the fee refund recently.
    https://www.paypal.com/us/smarthelp/...vanced-faq3108
    Yikes. Yes indeed they did.

    I just sent a buyer a $25 refund on a $525 purchase, for reasons I needn't specify here, and PayPal debited my account for the entire $25 -- in the past, that would have been something like $24.26 from my account and $0.74 from PayPal as a fee refund. I guess those days are gone.

    So if you must do a *full* refund, you either eat the PayPal fee, or refund the actual amount you got from PayPal and put the fee on the buyer.

    I'm sure this will add up to a nice yacht for the PayPal CEO.
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