Postage costs, customer address issues and international returns.

[KC1]

Hello,

We're looking for ways to combat incidents along the lines of the following scenarios:

1. Customers order with free shipping, has the wrong address - If sent back, what's the best way to charge a re-shipping fee ? If it's not sent back, how to we ensure were minimise losses?
2. An international shipment is either refused due to the customer not wanting to pay import fees/charges, or doesn't collect the item/delivery failed - We are then charged by the postal service for returns, what's the best way to bill this to the customer or minimise losses?

Free shipping is only for orders over a certain amount and it's not something we're going to remove due to the positive impact it has on sales. These are a small number of orders each year but often result in chargebacks, refunds or hassel to our customer services when it's a customer-issue.

We clearly also state at checkout about import fees and we internally check addresses via our shipping solution.

Any advice is appreciated as we're looking at the following options:
1. Adding pre-paid returns label for the customer to choose from
2. Updating our T&Cs once passed legal review
3. Improving workflow for deductions on refunds

 

[Paul Kelly ICHYB]

1. Customers order with free shipping, has the wrong address - If sent back, what's the best way to charge a re-shipping fee ? If it's not sent back, how to we ensure were minimise losses?

• Don't offer free shipping?
• Get them to confirm the address is correct?
• Refund the purchase price minus shipping ?
• Tell them they need to pay for reshipping?

. An international shipment is either refused due to the customer not wanting to pay import fees/charges, or doesn't collect the item/delivery failed - We are then charged by the postal service for returns, what's the best way to bill this to the customer or minimise losses?

• Do you advise them that there may be import charges? If they do not expect it, a refusal is very likely.
• If your courier send you updates, nudge customers to complete the import process
• If the T&C's state that refusal of delivery is on their account, refund sales minus costs - ensure this is in t&c's.

 

[KC1]

• Don't offer free shipping?
• Get them to confirm the address is correct?
• Refund the purchase price minus shipping ?
• Tell them they need to pay for reshipping?

As mentioned above, we're not going to remove free shipping due to the positive impact it has overall on sales. We have historically absorbed any cost as a goodwill gesture but are looking to reduce the amount lost on this.

We do ask them to confirm the address if flagged at potentially incorrect.

In the event we refund, we do deduct the shipping fee if paid for however when there' is free shipping im unsure if we can charge for it with B2C customers. It would be like the USA restocking fee but unsure about that in the UK.

Often, when a customer asks for a refund due to not wanting to pay for re-shipping (if they did originally), we refund minus the postage. However, if the order has free shipping that's the issue we're trying to improve on.

• Do you advise them that there may be import charges? If they do not expect it, a refusal is very likely.
• If your courier send you updates, nudge customers to complete the import process
• If the T&C's state that refusal of delivery is on their account, refund sales minus costs - ensure this is in t&c's.

Yes we do, on several places during the checkout process and by the purchase button. It's normally the amount of fees charged by the postal services in comparison for lower cost order values, due to the postal service charging a disbursement or other handling fee. It's only a small number of customers, mostly those with a low-order value or never imported outside of the UK before.

This is most likely what we're needing to push harder on, often support will let it slide and we absorb the cost but are seeing an increase of issues like this. DHL for instance may charge £50 for a shipment to be sent back to the UK, but the product value is only £30 and the customer would end up owing is money and not contacting us at all. The more recent issue we had of this was:

1. Customer places a £45 order with £40 express shipping.
2. DHL tries to delivery but customer is no longer at the address (out of country).
3. Customer asks for it to be sent to another country or address not in local area, which is not possible
4. DHL destroy the shipment (Customer is fully lieable) or DHL charge £50 for it to be sent back which is £5 more than the product price.

 

[Paul Kelly ICHYB]

However, if the order has free shipping that's the issue we're trying to improve on.

It is all about what your t&c's say - state the actual cost of postage will be deducted or similar.

but the product value is only £30 and the customer would end up owing is money and not contacting us at all.

...T&C's, however, I think you would be hard pressed to charge people an additional cost for something they did not get.

 

[KC1]

It is all about what your t&c's say - state the actual cost of postage will be deducted or similar.

We may look to do a flat fee for UK/International to make things simpler as it can vary a lot. This way we wil claw back some of the loss, which is an improvement, even if its not all.

...T&C's, however, I think you would be hard pressed to charge people an additional cost for something they did not get.

Understood It's circumstantial and really varies depending on the cost we incur by it.

 

[fisicx]

It is the wrong address or an incorrect address?

Do you have an address lookup on your checkout?

 

[KC1]

It is the wrong address or an incorrect address?

Do you have an address lookup on your checkout?

It varies, we're doing a review 2023 and have seen the following scenarios crop up:
1. Address is partially correct
2. Customer wants to change it to another address entirely (Sometimes country) - Which triggers our fraud policy of requiring a return/refund to credit then a new order to be placed.
3. Address is valid but customer was not home to collect or didn't collect in time and was sent back.

Our shipping solution has an address checker on, which we use and flag/ask the customer if it appears incorrect.

 

[fisicx]

3. Address is valid but customer was not home to collect or didn't collect in time and was sent back.

Do they have to be at home? I places quite a burden on the buyer to be in and able to answer the door at the exact moment the courier knocks.

I haven't signed for anything for years. But everything is tracked so I know exactly when the courier delivers. Many now send me a picture of the package in our safe place.

 

[KC1]

Do they have to be at home? I places quite a burden on the buyer to be in and able to answer the door at the exact moment the courier knocks.

I haven't signed for anything for years. But everything is tracked so I know exactly when the courier delivers. Many now send me a picture of the package in our safe place.

I think for international they may but it depends on the country and value of the shipment. We use royal mail international tracked. Typically DHL for instances give the customer the option to choose a safe place/make alternative arrangements. Royal mail in the UK is the same but when it's sent to another country, it will depend on their local postal service.

We don't use signed for, only tracked for a while now because of exactly that issue. They do normally get up to 3 attempts at delivery for all services.

That being said, not wanting to pay custom fees is more common than items being sent back without notice etc. Maybe 5-10 times a year we get something returned with no contact from the customer, so we contact them to arrange re-shipping etc.

 

[DontAsk]

We use royal mail international tracked.

There are no return fees in that case.

 

[KC1]

There are no return fees in that case.

Correct, not for royal mail its DHL and other couriers that do that and it can be more than the original shipping we paid for. It's contractual but about DHL is £50 for any returned shipment.

 

[DontAsk]

Correct, not for royal mail its DHL and other couriers that do that and it can be more than the original shipping we paid for. It's contractual but about DHL is £50 for any returned shipment.

I would just use Royal Mail for low value items.