How Does Everybody Handle Chargebacks???

by jeffreyasolochek 6 replies
With Digital products if I offer a 100% refund po;icy I get more sales but then afgain I get a lot more chargebacks.

I can no longer sell myt digital products on Ebay using the auction feature.

What percentage of chargebacks is notmal to expect?

Your ideas and input will be greatly appreciated.

Thanks in advance

Jeffrey A. Solochek
#main internet marketing discussion forum #cancellations #chargebacks #digital delivery
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  • Profile picture of the author Scott Ames
    Do you mean refunds? Chargebacks and refunds are two different things.
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  • Profile picture of the author mmurtha
    Hi Jeffery,

    I'd say it depends on the product, plus other variables like what crowd is buying.

    For instance, if your product is junk then people are most likely going to ask for a refund. Plus, if someone bought the product hoping to get specific inormation, but didn't they will do a chargeback as well.

    I've seen some stats that go for a 1.5% - 67%. I've never sold digital products on eBay though. The stats came from friends of mine, but seeing these or hearing about the stats sure did make me rethink putting up anything digital.

    EBayers do buy some digital, but them prefer physical products over anything. That may have something to do with it too.

    You simply don't no.


    Mary
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  • Profile picture of the author Britt Malka
    From what I've heard, it's more "normal" to get asked for a refund, if you sell at ClickBank. Because it's so easy, and you don't necessarily have to deal with the seller himself.

    But if you sell your products in another way - I don't know what's normal. I never had any demands for refunds on my own products, and only two for a product I have resell rights to (and I've sold hundreds). I guess about 1 pct. is perhaps considered "normal"?

    If you create quality products, you have less refunds than if you create bad products.
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    • Profile picture of the author myob
      Price your products to allow for about 3% in chargebacks and/or refunds. It WILL happen no matter what you do.
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    • Profile picture of the author Italian Guru
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      • Profile picture of the author Kim Standerline
        Originally Posted by Italian Guru View Post

        Forgive me for being dense, what is a chargeback?
        A chargeback is when someone contacts their credit card and complains about a transaction, they will quite often say it is fraudulent (which it may well be). Or the goods are not as described etc. (which they may not be).

        Its a pain in the ass when people do charge backs without asking for a refund first,

        Kymi
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      • Profile picture of the author myob
        A chargeback is a reversal of a credit-card transaction. It usually occurs when a consumer files a complaint with their bank or credit/debit card provider. A consumer claims a fraudulent transaction on their statement or misrepresentation from the order page. Often the consumer complaint is untrue, and their refund claim gets denied. In these situations, the merchant will still be charged processing fees. The bank will investigate complaints, and will "take back" the value of the original transaction, together with an additional fee directly from the merchant's account, unless the merchant can prove the transaction was legitimate. This can be especially costly if you have a high volume transactions or sell high priced products.
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