Accept the return and offer a FULL REFUND, including the REASONABLE cost of shipping the item back to you. No need to pay for overnighting a return.
The thing is, upsetting the buyer will only earn you a negative feedback and draw scrutiny to your account. eBay/PayPal/Amazon will give the buyer their money back and tell them to return the item anyway, so you gain nothing by making a big deal about it - in fact, YOU LOSE!
That is just the way it is. And I don't really disagree with it. As a buyer, I don't want to be stuck with someone else's problems. If the listing says an item is in working condition, then it needs to be in working condition. I never complain about small stuff, but if I bought a laptop in working condition, and when it arrived it was DOA, I'd be upset if the seller refused a refund.
When I list used items, I always list EVERY SINGLE DEFECT and try to use as many pictures as possible. I am also PAINFULLY HONEST in my descriptions. That avoids a lot of these problems. And I NEVER refuse a refund or a replacement request, unless the item was bought a long time ago.
I advertise 30 days but will stretch that to 60 days when necessary. Remember, CHARGEBACKS are a possibility for up to 180 days! And you want to avoid those like the plague. PayPal will debit your account for the amount of the chargeback and may even charge you a fee if they feel you were at fault. On Amazon, your "defect rate" will skyrocket under their new points system. A chargeback or A-Z claim is considered a SEVERE problem.
Nobody likes refunding money or accepting returns. I know I don't. But, if you are operating professionally, you just have to deal with it sometimes.
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