4 {{ upvoteCount | shortNum }}
4 {{ upvoteCount | shortNum }}

How to avoid restocking fees?

by wonderd
3 replies
  • ECOMMERCE
    • |
I am doing a little competition analysis and I notice my competition is offering no restocking fees on returns while the same manufactures I do business with are still charging a restocking fee.

Is my competition biting the bullet and paying the customers restocking fee or is there something else going on?
#avoid #fees #restocking
  • Profile picture of the author amcg
    Originally Posted by wonderd View Post

    I am doing a little competition analysis and I notice my competition is offering no restocking fees on returns while the same manufactures I do business with are still charging a restocking fee.

    Is my competition biting the bullet and paying the customers restocking fee or is there something else going on?
    Depends on the market you're in. In luxury/premium markets, re-stocking fees might not exist to the same extent as in mass merchandise; this might be as a result of fatter margins in the former.
    {{ DiscussionBoard.errors[8934971].message }}
  • Profile picture of the author Anton Louis
    They may have been working with these suppliers for a long time and noticed that returns and far in few in between.

    Maybe the additional sales from their "no restocking fee" policy outweighs the costs that they have to absorb when a customer actually wants to return an item.
    Signature

    {{ DiscussionBoard.errors[8935325].message }}
  • Profile picture of the author Daniel J
    Yes, trying to figure out competition's strategies can be baffling. Are the "manufacturers" you are working with drop shipping the items for you? If so, your competition may be buying in bulk. None of my suppliers charge me "restocking fees" they simply send me replacements (or a refund depending on why I'm returning the item to them.) In my opinion, this is one great advantage to stocking your own product. The disadvantage of course is the upfront investment. If you are drop shipping, you may want to consider investing in a low quantity of your top selling items thus avoiding the restocking fees from the suppliers.
    {{ DiscussionBoard.errors[8936810].message }}

Trending Topics