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Old 02-28-2016
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Default eBay's New Return Rate Metric - Protect Yourself Now!

You have most likely noticed that eBay now has a return rate metric on your seller dashboard. While eBay CLAIMS it is only providing the information for use by sellers and is NOT judging sellers by that metric, you can expect that to change as eBay gains confidence in their return rate calculations and works the bugs out.

So, it is in your own best interest to get a handle on this now and figure out how to reduce that rate. We have all seen eBay crackdowns on sellers, eliminating hundreds, or even thousands of sellers at a time, simply for falling below what they consider to be an acceptable level of whatever it is they are measuring. It would be very easy for eBay to identify the sellers with the highest return rates and simply close their accounts. Because in eBay's eyes a return equals an unhappy buyer. Amazon has been doing this for some time now.

So, the question becomes, what is an acceptable level of returns? How do I know if my return rate is good or bad? While we cannot answer these questions in an exact way, we can make some guesses based on some measurements we can find for online retail. These are not numbers specific to eBay, so eBay's average return rate could be higher or lower, but you would do well to stay on the low side of the scale.

For example, in 2013, average return rates for web-only retailers was 3.47% overall. And then, you can further break it down by category, because some categories have higher rates of returns than other categories. Apparel for example, consistently has return rates at the high end of the scale. This is because of items not fitting properly, or can be due to the fact that color on every monitor is set differently, so the dress that looked great online may not be the exact color you were expecting. So, if your return rate is on the high side of the average, dig a little bit deeper and find the average return rate for your category. Your return rate may be low going by those numbers.

Generally speaking, anyone on eBay with a return rate above 5% should probably worry about eBay taking this metric into account in the future. I would aim for a return rate of 2.5% or less. The lower, the better.

I have a return rate of less that one half of one percent. Years ago, I was trying to figure out why people returned items. Not because of eBay or Amazon, but because returns are costly and can really drag on profits. I found that in most cases, it was because someone had ordered a book from me and received one that was slightly different from the description and ISBN numbers. For example, I had a paperback in stock, but my listing mentioned a hardback. So, I started cleaning up my listings and being careful not to just copy and paste an old listing, but to make sure the ISBN was correct and that it was the correct version of the book that was being listed. This drove my return rate from 3% to where it is today at less than 1%.

Of course, what steps you have to take depends on what category of items you sell, and why you find that your buyers were returning the items.

Here is a link you can go to to see what the average return rates for online retail are. They have the general figures and the category breakdowns:

https://www.internetretailer.com/201...st-return-rate
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Default Re: eBay's New Return Rate Metric - Protect Yourself Now!

My strongest account with the most sales is currently at 4.75%.

I understand WHY they would be doing this but they need to really tailor it to the category.

So someone who sells books I imagine shouldn't have that high of a return rate, I would think. I sell clothes, and although I'm selling more new than used now I still get returns on a frequent basis. I would think anything above 5% is getting into the red zone.

Haha, I just noticed you mentioned 5% after re-reading the post.
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Default Re: eBay's New Return Rate Metric - Protect Yourself Now!

Quote:
Originally Posted by jeffweico View Post

This is because of items not fitting properly, or can be due to the fact that color on every monitor is set differently, so the dress that looked great online may not be the exact color you were expecting.
The return I hate the most......
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Old 02-29-2016
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Default Re: eBay's New Return Rate Metric - Protect Yourself Now!

Thank you for the heads up Jeff
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Old 02-29-2016
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Default Re: eBay's New Return Rate Metric - Protect Yourself Now!

It would probably depend more on top rated status, losing benefits before losing account. I would think 2% or less keeps you top rated 3.01-5% would be average and over 5% would be risking suspension....

Also, it could be that they plan on more category limits. If your return rate is higher in certain items then maybe they just block you from that category.

Honestly I wouldn't mind getting a few kicked out of some of my main selling categories. Just making us all look bad....
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Old 03-01-2016
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Default Re: eBay's New Return Rate Metric - Protect Yourself Now!

Quote:
Originally Posted by solefoodbk View Post
My strongest account with the most sales is currently at 4.75%.

I understand WHY they would be doing this but they need to really tailor it to the category.

So someone who sells books I imagine shouldn't have that high of a return rate, I would think. I sell clothes, and although I'm selling more new than used now I still get returns on a frequent basis. I would think anything above 5% is getting into the red zone.

Haha, I just noticed you mentioned 5% after re-reading the post.
I sell mostly clothes as well. When I stated including hand measurements on each item and a like a bold disclaimer check and compare to something you own etc. Items vary in age and sizing can vary. Blah Blah it went way way down. I also started utilizing the Restocking fee option and take lots of pics. I mean knock on wood but it has helped keep the nonse returns way down. Getting back clothing sucks. Half the time if was new in bag the bag is gone or the tags are missing etc.
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Old 03-02-2016
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Default Re: eBay's New Return Rate Metric - Protect Yourself Now!

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Originally Posted by vogeltron View Post
I sell mostly clothes as well. When I stated including hand measurements on each item and a like a bold disclaimer check and compare to something you own etc. Items vary in age and sizing can vary. Blah Blah it went way way down. I also started utilizing the Restocking fee option and take lots of pics. I mean knock on wood but it has helped keep the nonse returns way down. Getting back clothing sucks. Half the time if was new in bag the bag is gone or the tags are missing etc.
Anything new w/ tags I make them show me the tag is attached. If its not then I'm not accepting the return.

I don't like taking pictures of the ruler on clothing, it can help with cases but to me looks unprofessional. I take the collar to bottom, pit to pit, and sleeve length. Anything else the buyer to me is a little OCD on making sure it fits. Unless its a really expensive item then I can understand. The problem is there is so many reasons why things don't fit. Like if a shirt is "classic fit" it will naturally fit a size up, but if the buyer chooses to not read the description of course its a instant return..

I add re-stocking fee and it is REALLY nice. I only do 10%, anymore is a little extreme for clothing. 100% justifiable though. Once you wear something it devalues the item so restocking fee helps AND discourages buyers for just returning it to return it.

I will NOT be doing the 30 day return policy just to get the TRS. The idea that someone can buy something from me and return it after a month of wearing it is crazy. This is a fundamental problem with eBay. Certain categories SHOULD be treated differently.
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