Diluting sales to keep account healthy

[solefoodbk]

I recently started selling some items that I lose money on, about $1-$2 per sale. Eventually I could buy wholesale and maybe not lose $$ but thats not really my objective.

For example if I get 10 extra sales per day it dilutes my return rate and overall numbers in my favor. I never have intentionally done this in my 7 years of selling online. Done over an extended period of time with more items it really works in my favor. I make plenty of profits to not worry about the little losses I have from this. Its a cost of doing business in many ways. I think it will make the account less likely to get hit with negative flags, and in general brings more customers to my shop.

Does anybody here do this?

[SaiJin]

I don't do this because I don't believe in this strategy at all.

There are better ways to keep an account healthy like shipping fast, good communication, as described items etc.

[solefoodbk]

Originally Posted by SaiJin

I don't do this because I don't believe in this strategy at all.

There are better ways to keep an account healthy like shipping fast, good communication, as described items etc.

When I was younger and working at Best Buy I was told by upper management they break even on most branded TV's etc. A lot of their profits come from selling accessories and protection plans. Getting the pricey items are more so to get the customers in the door. Maybe things changed but I worked at the store near the corporate head quarters. In essence this is the same thing except its more to protect your number ratios for eBay.

[yankee]

My return rate is .29% on the worst account and zero on the best accounts. My peers are .42% according to ebay.

Are you getting returns because of fit, etc.... or are you selling items that are problematic and just getting returned for quality/defects etc?

Is your return rate average with your peers?

If you are in line with your peers in your category, I dont think you need to manipulate the return rate. But if you are above your peers, it may be insurance you need. Just make sure the items you are selling for the buffer dont get returns etc... and be counterproductive.

[vettefever17]

As Yankee has mentioned above, I would want to stay within the parameters of the category. Diluting could keep the policy police off of you, but that is not really the problem.

The problem is why are you getting the number of returns to worry about the return rate? I wont assume things of why these items are being returned. Just a thought to ask yourself whether it is competing or other things.

[ebaystealth1974]

It will definitely work... done it before, but I would try to find something I could at least break even on. $10-$20 a day adds up quick. $3700-$7400 a year. Is it really worth that to keep the account buffered?

Like the other guys are saying, see if you can rectify the high returns issue.

[Hank]

The first piece of advice given, even by some who've posted on this thread, is if you're account has poor metrics and is threatened with closure is to sell a load of cheap/discounted stuff to assist with it's repair.

So, like me, all you've done is preempted this and reduced/eliminated the chance of this situation arising. Works for me too as my big money spinner is a 'widget' which is returned for many reason including buying the wrong part, damaging it when fitting, abusing it to breaking point etc etc etc.

Returns go with the territory but on its own my metrics would surely be trashed ... not that I'll ever know of course.

[solefoodbk]

Some of you guys always resort to the negative scenarios, always.

I came to realization I can apply for wholesale license and actually make about $1-$2 profit instead of losing money. I have never been one to sell items with such a low profit but these things add up over time. That really was the essence of what I was saying.

For example: I sell across about 5 platforms. It can very easy to be out of stock on items, especially during holidays. Even if I update inventory every single night (which I don't do) there can be a window in between this where someone buys a bunch from one platform causing issues on another. I have had my account for a long time so there no need to educate me on customer service. I am trying to play offensive not defensive.

If I am selling a bunch of items that are easy to sell and I make low profits but this gets me,

1) easy accumulative feedback
2) lowers late shipment rate
3) lowers return rate

This helps protect my account from potential issues. Its a ratio game. All I am trying to do is protect my account from things I cannot control that can happen. Planning for problems before they happen in many cases can prevent those problems from happening in the first place.

[solefoodbk]

Originally Posted by vettefever17

As Yankee has mentioned above, I would want to stay within the parameters of the category. Diluting could keep the policy police off of you, but that is not really the problem.

The problem is why are you getting the number of returns to worry about the return rate? I wont assume things of why these items are being returned. Just a thought to ask yourself whether it is competing or other things.

Yeah I am selling in the same category. I know selling things outside your normal items can cause red flags. Also if you are trying to actually run a retail shop that would make your shop look sketchy.

[solefoodbk]

Originally Posted by ebaystealth1974

It will definitely work... done it before, but I would try to find something I could at least break even on. $10-$20 a day adds up quick. $3700-$7400 a year. Is it really worth that to keep the account buffered?

Like the other guys are saying, see if you can rectify the high returns issue.

I don't have high return rates, but lets say I had 2.5%.... I'd rather have sub 1%. Totally agree on that though. I'm selling on average about 20 per day.. With a $2 profit thats $14,600 per year. Include many other items I could make low profits on it really compounds. I just never did the math and thought like this before. It was always good profits or its a waste of my time.

[ebaystealth1974]

Originally Posted by solefoodbk

I don't have high return rates, but lets say I had 2.5%.... I'd rather have sub 1%. Totally agree on that though. I'm selling on average about 20 per day.. With a $2 profit thats $14,600 per year. Include many other items I could make low profits on it really compounds. I just never did the math and thought like this before. It was always good profits or its a waste of my time.

I thought you were LOSING 1-2 bucks each? Maybe I misread your post...

[solefoodbk]

Originally Posted by ebaystealth1974

I thought you were LOSING 1-2 bucks each? Maybe I misread your post...

Yes I am right now. Once I get accepted for wholesale I can turn the loss I am receiving now into a profit. It is still only about $1-$3 per sale.

[ebaystealth1974]

Originally Posted by solefoodbk

Yes I am right now. Once I get accepted for wholesale I can turn the loss I am receiving now into a profit. It is still only about $1-$3 per sale.

Profiting 1-2 bucks is a 2-4 dollar swing from what you were previously doing! Can't beat that!

[yankee]

I don't think any of use were being negative at all LOL