Restocking fee

Discussion in 'Ecommerce Forum' started by Christiane, Dec 23, 2007.

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  1. Mattonella Tile Studio

    Mattonella Tile Studio UKBF Ace Free Member

    1,677 319
    Thanks Steve.
     
    Posted: Jul 3, 2008 By: Mattonella Tile Studio Member since: Jun 10, 2008
    #41
  2. Steve2507

    Steve2507 UKBF Newcomer Free Member

    1,555 222
    Thats okay.

    You may want to give your local trading standards a ring just to double check I am right. They are very helpful and not the ogres that a lot of business people think they are.
     
    Posted: Jul 3, 2008 By: Steve2507 Member since: Jun 9, 2006
    #42
  3. cjd

    cjd UKBF Legend Full Member - Verified Business

    15,452 3,074
    Yes I'm afraid so. (Unless the customer comes in and sees them - then it's not distance selling.)

    The up side is that this is so unreasonable that most customers don't know that they can cancel without reason or penalty. What you do about that information is up to you.....:cool:
     
    Posted: Jul 3, 2008 By: cjd Member since: Nov 23, 2005
    #43
  4. streetslocal

    streetslocal UKBF Newcomer Free Member

    3,046 363
    Yes this is correct.
    If your order tiles from a business that would be a business to business transaction which would be excempt from the distance selling regs however when you sell to a consumer they have the seven days under the distance regs.
     
    Posted: Jul 3, 2008 By: streetslocal Member since: Nov 27, 2007
    #44
  5. CableGuy

    CableGuy UKBF Newcomer Free Member

    130 8
    Completely agree!
     
    Posted: Jul 3, 2008 By: CableGuy Member since: Jun 13, 2008
    #45
  6. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,657 2,156
    Unfortunatly a lot of the DSR regs were based on the early birds like Gratons Catalog and Littlewoods

    The companies Charged very high prices but offered weekly payments and you could order what you wanted and they would pick up or give you free postage on any items you did not want

    Massive turnovers with high prices and returns could be sold on via specialist shops and still make great profits

    The DSR looked at this as the normall, then along came the internet and small companies who did not have the money or size to compete in this way but still got caught by the regs

    Restocking does have a place as B2B can place large orders which companies get in for the order and then find the order cancelled and returned. You cannot return to your supplier so are stuck with large amounts of specialist items thet at best may be very slow moving, so a restocking fee does help to ease the load
     
    Posted: Jul 3, 2008 By: Chris Ashdown Member since: Dec 7, 2003
    #46
  7. jxm28788

    jxm28788 UKBF Newcomer Free Member

    44 0
    To be honest, as a retailer, I wouldn't want you to shop at my store if you objected to restocking fees - that almost implies you're considering returning the goods before you've even purchased them!

    I'm sorry, but if the consumer wants to 'see and touch' these items they should go to a bricks and mortar store - they should leave internet buying to people who know what they want - we're in business to sell stuff, not provide a 'try before you buy' service. Why should I pay £5 to ship it out, and another £5 to have it shipped out just because they're not really sure if they'll like it or not?

    I disagree - customers don't only return products to companies with rubbish products. We get people ordering standard consumable products that are the same brand (and therefore quality/packaging etc) as every other store that sells these items, yet we still get returns because the customer purchased the wrong one or changes their mind for no apparent reason - this has nothing to do with the products or services. The DSR penalises all retailers not just the bad ones.

    We've had quite a few business returning items recently - so we're going to modify our T&C's to have a restocking fee for business transactions - pity we can't do the same for consumers as well. It's a total ripoff that we have to refund delivery and returns charges if they decide to return something - they should at least have to pay for that.
     
    Posted: Jul 4, 2008 By: jxm28788 Member since: Nov 16, 2007
    #47
  8. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,657 2,156
    The following is really our only defence

    The regulations give consumers an unconditional right to cancel an order. This is to allow the consumer the opportunity to examine the goods or consider the nature of a service.

    If a consumer cancels an order, written notice must be given to you by:

    goods - seven working days from the day after that on which the goods are received by the consumer;
    services - seven working days from the day after that on which the consumer agrees to go ahead with the contract.


    It is clear that if they just phone up or send the goods back with no written request to cancel, they have not given the written notice and therefore you do not have to accept the goods back. Small point often overlooked and using the phone is cutting it very fine if you refuse on that basis

    Basically treat your customers how you want to be treated
     
    Posted: Jul 4, 2008 By: Chris Ashdown Member since: Dec 7, 2003
    #48
  9. jxm28788

    jxm28788 UKBF Newcomer Free Member

    44 0
    yeah, but we don't really want to weasel out of it on a technicality - just have things a bit fairer - like they pay the delivery charge (after all they have received that 'service' whether they return the item or not), and they should have to pay the cost of return too...
     
    Posted: Jul 4, 2008 By: jxm28788 Member since: Nov 16, 2007
    #49
  10. streetslocal

    streetslocal UKBF Newcomer Free Member

    3,046 363

    BUSINESS TO BUSINESS TRANSACTIONS ARE EXCEMPT FROM DSR SO YOU DO NOT HAVE TO OFFER A REFUND FOR A CHANGE OF MIND ETC.
    Only faulty goods!!
     
    Posted: Jul 4, 2008 By: streetslocal Member since: Nov 27, 2007
    #50
  11. jxm28788

    jxm28788 UKBF Newcomer Free Member

    44 0
    I know, but we're not trying to weasel out of B2B transactions if they have made a genuine mistake (loading up on goods to use up their budgets then trying to return all the stock in the new financial year is another matter!) - but it seems only fair to make a charge for the hassle and time involved with dealing with the return.

    So with B2B we plan to make refunds 'at our discression' (ie. if they're not taking the p***) with a restocking fee. Seems fair to us and the customer that way.
     
    Posted: Jul 4, 2008 By: jxm28788 Member since: Nov 16, 2007
    #51
  12. 365drills

    365drills UKBF Newcomer Free Member

    29 1
    Can I just say that from the other perspective we sell a niche item (drills for granite) and had a customer by one pack of 22mm delivered and then a pack of 25mm delivered.

    A month later he wanted to send back the 22mm.
    So we told him to pay for the return postage which he did.
    The invoice was for £45.48 total which included
    £40.49 for the drills
    £4.99 postage and packing.
    And it all included 20% VAT

    I was going to charge him 20% restocking fee (which is obviously the same at the VAT!!) But when I looked at the cash value it was only £6.49 which didnt seem much for our agro.

    So I chose a figure of £8 which seemed reasonable to me (the retailer) to cover all my time and agro plus credit card charges and some of the lost profit.

    Running a business not a charateeee so think that as the goods were out of my sight for a whole month then its goodwill on my part to take them back BUT I also want to see a commercial return for my deed.

    The problem with these big chains and their generous refund policies is that suddently Joe Public thinks it applies in all cases no matter what the time frame.

    Just a different view and observation - not looking for a squabble here (or a pat on the back either)
     
    Posted: Dec 9, 2011 By: 365drills Member since: Oct 29, 2011
    #52
  13. Sstevemichael

    Sstevemichael UKBF Newcomer Free Member

    6 0
    how much the fee?
     
    Posted: Dec 12, 2011 By: Sstevemichael Member since: Dec 10, 2011
    #53
  14. 365drills

    365drills UKBF Newcomer Free Member

    29 1
    Well I chose a figure of £8 to restock the item.

    From an inital cost of £40.99

    If
     
    Posted: Dec 12, 2011 By: 365drills Member since: Oct 29, 2011
    #54
  15. kulture

    kulture UKBF Legend Staff Member

    7,961 2,169
    Whilst I understand, if the customer was a consumer and not a business, what you have done is against the law.
     
    Posted: Dec 12, 2011 By: kulture Member since: Aug 11, 2007
    #55
  16. Sstevemichael

    Sstevemichael UKBF Newcomer Free Member

    6 0
    thanks for the recommendation
     
    Posted: Dec 12, 2011 By: Sstevemichael Member since: Dec 10, 2011
    #56
  17. 365drills

    365drills UKBF Newcomer Free Member

    29 1
    Not sure if any laws were broken. The goods were out of contract so it was goodwill for us to give anything back.

    It was remember a case that the customer just didnt want them any more (not broken or faulty). And a month had gone by not 7 days.
     
    Posted: Dec 12, 2011 By: 365drills Member since: Oct 29, 2011
    #57
  18. Sstevemichael

    Sstevemichael UKBF Newcomer Free Member

    6 0
    Where to buy it?
     
    Posted: Dec 12, 2011 By: Sstevemichael Member since: Dec 10, 2011
    #58
  19. Bill1954

    Bill1954 UKBF Enthusiast Full Member - Verified Business

    734 134
    how to spam it
     
    Posted: Dec 12, 2011 By: Bill1954 Member since: May 24, 2010
    #59
  20. kulture

    kulture UKBF Legend Staff Member

    7,961 2,169
    Fair point, but if the distance selling regulations and the right to cancel are not mentioned in the terms and conditions, then the period is 3 months and not 7 days.
     
    Posted: Dec 12, 2011 By: kulture Member since: Aug 11, 2007
    #60
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