'Clearance sale' return policy

[drenwick]

Hi all.
My site has a selection of items that are marked as 'clearance' and non-returnable.
It's on the page where the customer sees the product (literally in it's own bold section right above the description), it's on the check-out and the T&C's are in the returns policy page in a specific section. Oh and it's on the document that I ship with the item.

I have this policy in place because I am selling these old items at below purchase price - I am literally trying to clear out stock.. I am honest and clear about this again in the T&C's. I don't charge the entire shipping costs to the customer and therefore an additional hit.

Nevertheless - the distance selling regulations say to me that I cannot refuse a refund within 14 days - despite laying out my honest and open T&C from the outset.

All this aside: I still get customers demanding refunds. I couldn't be clearer about the policy and the reasons for it.
I am a honest retailer looking to pass on very good quality goods at below cost in order to clear out the stock room and generate some cash flow. Seems to me that the consumer doesn't have to take any responsibility for their purchase decision at all and that I can continue to lose money processing, shipping and the re-processing the goods time and time again.

The only option I see is to throw them away all together instead of offering them at bargain prices.

Any help or advice here would be appreciated. I am trying to do 100% the right thing here.

Thanks

dave

 

[Mr D]

Your terms and conditions do not override the law. Buyers have right of return.
Sell the stuff in a job lot on ebay or somewhere to get rid, let it be someone else#s problem.

 

[WebshopMechanic]

Hi Dave,

What is the reason for them returning the product? Is it something you could make clearer in your product description or title? Is there something missing in the product detail? Could you add better images? Maybe include B-Grade in the product name?

Unfortunately, everything is stacked against a retailer when it comes to things like returns and fraud but you can cover yourself by charging a re-stocking fee.

If a customer orders a product and doesn't like it then you are entitled to charge a re-stocking fee to cover the postage /admin costs of you sending the item to the customer. You can't be expected to absorb all the fees just because a customer changes their mind.

I don't condone this for standard products but this does makes the customer think twice before returning it and you should include it in your product description and terms and conditions. After all, you're not a charity.

If the product is faulty then you can't do that. You should refund it immediately, no questions asked.

I would also add information to your order confirmation emails to ensure you get it in front of more eyeballs. Order confirmation emails have some of the highest open rates.

Hope that helps.

Matt

 

[Raw Rob]

If a customer orders a product and doesn't like it then you are entitled to charge a re-stocking fee to cover the postage /admin costs of you sending the item to the customer.

This is just not true for B2C. You can get the customer to pay return postage, but only if you specify this in your T&C. (Of course, the rules are different with B2B and you can do this.)

 

[Clickdocs]

Hi Dave,

You can't remove/negate consumers' statutory rights. Any terms of sale that you offer that conflict with statutory rights would not be upheld should a dispute arise.

Distance selling regulations - the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 - also say that you have to make consumers aware of the statutory 'cooling offer' period and their right to return goods. There are some exceptions but it doesn't sound as though the goods you're offering would be exempt. You don't have to pay the return freight costs but you do have to refund the purchase if the consumer exercises their statutory right and the goods are returned in good order etc.

Can you re-price your bargain so that you don't make a loss? Mr D's idea of selling through a different channel/in bulk also sounds good.

 

[Paul Norman]

As stated above, you have to accept returns, even on clearance items.

If the item is correctly supplied by yourself you can ask the customer to pay for the return - and generally, they will, if your terms stated this.

In online retail people do return stuff. And it often means a loss on an individual transaction.

But you cannot look at online retail like that. You have to ensure that your margin on goods that sell at a profit is enough to pay for:

1. Credit card fraud (not a lot, you have some protection against that)
2. Returns that you cannot then resell, or lose money on (as your example)
3. All the courier and logistics costs.

And, of course, much more. A lot of inexperienced retailers that I speak to just do not have a profitable model, if the truth be told.

Amazon, Asos and the like can outgun you because they have volume. Unless your costs are close to zero, you have to have volume.

 

[deniser]

I have the same problem. I have tried selling it off for next to nothing online, Ebaying it and opening a pop up B&M shop to clear it but nothing really works.

I was reading about a card company which failed because they were paying for warehousing stock which was old and probably unsaleable when they should just have burned it!

I really need the space now and my pop up shop has reopened. Those who dare to venture inside (young people seem scared of independents) leave with bags and bags of stuff because it is ridiculously cheap (less than 25% of the original price) but it's getting people to come inside which is difficult. There used to be a large footfall outside my shop but it has dwindled to virtually nothing. Everyone just seems to drive these days. The door is open.

I have already given lots away to charity. Currently trying to think of some gimmicks to lure people inside. I need to clear it all by Christmas as I need the space for new stock. I am wondering whether I could shift it even if it were free.....

 

[DontAsk]

I am a honest retailer

So abide by the law like all other honest retailers

I am trying to do 100% the right thing here.

You are clearly aware of the law. You know what you have to do. Why are you even asking?

 

[DontAsk]

I have the same problem. I have tried selling it off for next to nothing online, Ebaying it and opening a pop up B&M shop to clear it but nothing really works.

You don't have the same problem in a B&M shop as the distance selling regs do not apply. You CAN refuse returns, unless the goods are faulty or not as described.

 

[Mr D]

I have the same problem. I have tried selling it off for next to nothing online, Ebaying it and opening a pop up B&M shop to clear it but nothing really works.

I was reading about a card company which failed because they were paying for warehousing stock which was old and probably unsaleable when they should just have burned it!

I really need the space now and my pop up shop has reopened. Those who dare to venture inside (young people seem scared of independents) leave with bags and bags of stuff because it is ridiculously cheap (less than 25% of the original price) but it's getting people to come inside which is difficult. There used to be a large footfall outside my shop but it has dwindled to virtually nothing. Everyone just seems to drive these days. The door is open.

I have already given lots away to charity. Currently trying to think of some gimmicks to lure people inside. I need to clear it all by Christmas as I need the space for new stock. I am wondering whether I could shift it even if it were free.....

So sell it to a company who will buy it all in one go.

 

[pen2670]

@deniser have you tried listing on local Facebook selling groups? Works for us with that kind of customer and if I remember correctly we're in a similar industry

Maybe would work for OP too if they have a physical base.

 

[deniser]

So sell it to a company who will buy it all in one go.

Where do I find that company? Have tried several and they don't respond.

 

[Mr D]

Where do I find that company? Have tried several and they don't respond.

Google. And phone them.

 

[deniser]

You don't have the same problem in a B&M shop as the distance selling regs do not apply. You CAN refuse returns, unless the goods are faulty or not as described.

Just to clarify, we are an online business so have exactly the same problem as the OP.

 

[Mr D]

Just to clarify, we are an online business so have exactly the same problem as the OP.

The pop up b&m does not.

 

[DontAsk]

Just to clarify, we are an online business so have exactly the same problem as the OP.

You said you had tried a pop-up B&M shop. Assuming that wasn't a typo for Something else, a bricks and mortar shop DOES NOT have the same problem with regard to distance selling regs and can refuse returns unless goods are faulty or not as advertised.

 

[Chris Ashdown]

We had the same problem but had the advantage of a B&M shop as well. What we found was to advertise on Facebook the sale in the shop and like a pack of lions out for a kill the bargain hunters came and brought

Different item we did find local facebook a great way to get customers as we were on a industrial area so little footfall most days

 

[antropy]

Any help or advice here would be appreciated.

Car boot sale?

 

[lesliedocherty]

So abide by the law like all other honest retailers

You are clearly aware of the law. You know what you have to do. Why are you even asking?

Think his point is more in frustration than anything else, didn't take from his post he was dishonest,

 

[gibby]

We used to do the same thing with shoes as we would list each pair and run a big clearance sale online.
The returns were far too high and daftly customers would pay more for return postage then their product was worth.
We did manage to cut the returns rate right down by adding a message to the product listing and putting a note in with each item.
We still made money but its a lot of work.

We also found that finding local events or market was a better way to move clearce stock. Another way was to sell a box load on eBay as there are loads of traders who can move stock.

 

[deniser]

The pop up b&m does not.

I know that. I only mentioned the pop up shop in the context of trying everything and anything to shift excess stock. The point is that the pop up shop doesn't work either so stuck with the original problem of not being able to sell at below cost online because returns effectively cause you further losses.

 

[Mr D]

So do not get returns. Shift to a bulk buyer as a b2b transaction.