A Restocking Fee?

[PieAreSquared]

This idea has been promoted on another thread, which got me thinking, how many of us would actually order from someone if we would have to pay a fee to return an unwanted gem? I'm talking about in addition to paying return shipping.

Honestly, I don't think I would...

Would you order from a company that charges a restocking fee?

 

[bludiva]

i'm more likely to order from someone who allows returns and does not charge a restocking fee but if the fees are reasonable, it wouldn't stop me from purchasing something i want.

when the restock fee is something like 15-20%, that would be too much.

paypal did small businesses and consumers a disservice by instituting fees on refunds btw.

 

[shelovesinclusions]

I have and would again. I see it as a way for small businesses to protect themselves from policies of large companies like PayPal or other credit card processors who charge them a fee for both the purchase & the return. Even low volume retail stores of large corporations are negatively impacted by returns.

I think it is also beneficial for me, the customer, when I am buying a one of a kind item online- I have satisfaction that the chances of the item having been in multiple other hands (or possibly dropped or microscopically scratched) is lower. It lets me know the seller is confident in what they are selling and that it is exactly as described (because if it's not, PayPal protects the customer and the fee could be circumvented through a dispute).

 

[amoline]

Yes.

The issue becomes for me, as @bludiva states, when restock fees start becoming a significant percentage of the original item, I'd rethink.

Honestly, I've bought quite a few gems and pearls online, sometimes with 3-4 photos for a piece, and I return less than 5% of anything I've purchased. When I have returned something, it was upfront and honestly forewarned, such as "Well, I'm not sure - go ahead and send it; if I decide I don't like it I'll pay for the hassle getting it back to you" and I've never had an issue.

 

[whitewave]

I would need a flat fee so I know on the front end how much it is. If I thought it was worth it, I’d pay it.

 

[whitewave]

They could put a note on the page with that stone: *this stone has a $8.00 return fee.

I just made up that number. I don’t know what number would be ok to me.

 

[PieAreSquared]

Thanks for everyone's input. So what would be your limit? ($8 sounds great BTW! )

If I bought a stone for, say, $2K, even a seemingly small fee of 5% (I just made that number up too) would mean I would have to pay $100 -for a stone I didn't want. I think I would be unhappy with that no matter what.

 

[mellowyellowgirl]

It would make someone very careful about what they order and I'm all for it.

I think it's a good idea. Say you order a $2000 stone and you really hate it. Better to pay a $200 stocking fee and get $1800 back than be stuck with a $2000 stone you don't like.

If you're on the fence don't order the stone but if you really thought you would love it, at least this gives you an out should it not live up to your expectations.

 

[lovedogs]

I would be ok with a small one, especially for stones that I am honestly not sure about how they'll look to my eyes (like ones that are tricky to photograph or have different moods in different ligjts).

 

[Arcadian]

I have no issue with it considering sellers are being put over a barrel by paypal, and it makes some sense.

Also, it makes the consumer do some serious considerations on the stones which I think is good. Gems in particular are emotional purchases unless you're some kind of collector doing it to make money (good luck and please adopt me?lol)

Will that mean a smaller pool of sellers for some? Sure, and thats ok too. They have to do whats best for them, we (general we) have to do whats best for us.

 

[icy_jade]

Precision gems has a no return discount, which works too.

 

[Bron357]

I think restocking fees for change of mind fair enough when dealing with small businesses. That said I buy with the intention of keeping, not to “see if I like it”. It takes time ie costs money for a business to process sales and shipping and then subsequent returns so restocking fees are a way of stopping customers wasting a vendors time and energy, I know of people who will think nothing of ordering half a dozen items to see which one, if any, they’ll keep. With others I know some (with clothes or handbags especially) that they’ll actual wear to a function and then return to the store! I was appalled but some have no shame it seems! Not such an issue with jewellery but still.........
Now that PayPal keeps the fee that they charge the seller to receive your money, the vendor actually loses money if an item is returned for any reason. So sellers on eBay who were happy to accept a return for change of mind now pay 3% for you NOT to buy their item! Sellers don’t accept returns without charging you at least the 3% that PayPal will hit them with. This comes after the fee being charged on shipping. You pay $20 for shipping cos shipping is $20 but the Vendor only gets $19.40 and has to pay the 60 cents extra themselves.

 

[deorwine]

To be honest, I have been known to return a fair amount of stones, especially earlier in my stone-buying trajectory as I was going through the process of learning what I liked and didn't like in sapphires (my fave). (If only I lived near a jewelry/gemstone district and could just go look at good stones, I could have saved both the vendors and myself this trouble! At least the vendors that had to deal with the most returns from me also tended to get the most completed sales from me as well.) Now that there's this Paypal fee, I personally absolutely would want to reimburse the seller that 3% if I paid by Paypal. The one time I have made a return since the policy went into effect I felt terrible that I was essentially penalizing the vendor for sending something to me. (I offered, but that seller did not take me up on it as the agreed terms of sale had been for a full refund.)

I'm not really a fan of a larger restocking percentage fee than that because it seems unnecessary. I'd be willing to go with a 3% + (small relative to vendor's average sale price) fixed amount fee, though.

 

[T L]

I have no problem with small estocking fees as long as they’re mentioned prior to sale. I’ve had vendors tell me after the fact.

Commissioned pieces, like by Jeff White for example, charge a large percentage for a return of a commissioned piece. With gemstones, it’s a bit difficult for me to therefore commit to a commissioned piece if it’s a high restocking fee. Gems sold online need to be seen in person. They’re not like brooms, or McDonalds hamburgers, where you know exactly what it’s going to be like IRL before you purchase.

 

[sunandsky]

For covering paypal fees, I prefer a restocking fee to the alternative, which is that the cost of everyone's returns is baked in to all prices in a store. The costs need to be covered somewhere, and with this kind of fee the buyer who benefits from the ability to return also pays for that benefit. Otherwise, those who return less subsidize those who return more.

For the same reason, I also prefer a restocking fee to cover other small costs of returns to the vendor, if there are any reasonable ones.

All that said, I think paypal is a terrible company regarding treatment of consumers and their data, and I would be happy to have alternative means of payment (and therefore, no restocking fee to cover that ~3%!).

 

[bludiva]

Precision gems has a no return discount, which works too.

that's brilliant!

 

[dk168]

I am in UK and I import from abroad clothing and jewellery items all the time.

It is worth it even after paying import and customs charges on top of shipping.

However it does bump up the overall price of the goods.

Therefore I seldom return anything. In fact I do not believe I have ever returned anything that I had imported from abroad, as the return process is a pain for me personally.

Therefore, a restock fee will not put me off from purchasing from a vendor.

DK

 

[Acinom]

It does cost the seller money to enable returns. Therefore I have no issues to pay a restocking fee. Like @dk168 I live in Europe and have to pay shipping and customs. I only order a stone if I am 100% sure. Yet it did happen a few times that the stone did nog meer expectations (for example a yellow stone that turned Brown after heating).

 

[PrecisionGem]

Charge cards are worse than Paypal. With a charge card the vendor pays a few around 3% for the sale, and then another 3% if it’s returned. You negotiate a fee with the charge card company, and the more sales, the lower the fee. For us little guys, we don’t sell enough to get a good rate. I’m sure Walmart pays a fraction of a percent.

So far the best option I have found is Apple Pay Cash. There are no fees, the transaction happens instantly in a text.

I have been thinking of starting to just “memo” the stone to well established customers. Then once they have it, if they like it, they can pay for it. I have done that a few times already with people I know from here.

 

[Lisa Loves Shiny]

I think a reasonable re-stocking fee is a good idea. I hate returning anything so the re-stocking fee would make me feel guilt free for the return.

 

[MrsBlue]

Precision gems has a no return discount, which works too.

I've used this and was very happy with my purchase. It's a great option.

 

[marymm]

I am happy to cover return shipping costs and to bear the vendor's original shipping-out cost should I choose to return an item but as a consumer I personally don't care for restocking fees.

I'd rather the vendor list a $100 gem at $103 or $106 (i.e., gem price plus 3% or 6%) so that transactional fees associated with a return are covered.

 

[PrecisionGem]

i'm not in favor of a restocking fee. I know it would turn me off if I was placing an order.

To me, the bigger problem with returns is not just the lost PayPal fee, but it seems once a stone is returned, especially if it was show on PS, then it's much harder to sell it again. Its as if the stone has CoronaVirus or something. People I think assume that once one person saw it and didn't like it, there must be something wrong with it. Often the consumer photos posted here are not very good quality, with the color balance off etc. A bad photo can make a great stone look like crap. These CFL bulbs are about the worst thing that has happened to colored stones. Almost all stones suffer under them, except peridot and chrysoberyl.

 

[PieAreSquared]

I am happy to cover return shipping costs and to bear the vendor's original shipping-out cost should I choose to return an item but as a consumer I personally don't care for restocking fees.

I'd rather the vendor list a $100 gem at $103 or $106 (i.e., gem price plus 3% or 6%) so that transactional fees associated with a return are covered.

I agree @marymm.

I'm pretty sure most sellers don't "make money" on shipping costs (unless they are obviously inflated) so if I want to see a stone, I feel it's fair to pay for the expense to get it to me.
If I decide I don't want it, it's also on me to get it back to the seller.

After all, even huge online sellers like Macy's expect customers to foot the bill for return shipping.

 

[kenny]

IMO the fee is fair because it hits only those who return goods.
But if a seller does not charge a restocking fee she must raise the price on everything a bit, which hits buyers who do not return.
If a seller does charge a restocking fee, her prices could be lower ... not guaranteed to be lower , but could be lower.

But next is whether the fee drives customers away ... which makes the bottom line difficult to determine with certainty.

 

[yssie]

I feel bad taking advantage of free returns (that are due to me changing my mind, not an issue with my purchase) because I know it's not "free" for the vendor to accept a return. A reasonable restocking fee assuages that concern and makes me *more* likely to buy, not less - ditto @LisaRN.

What's "reasonable"? It should at least cover
A) All card/bank processor fees
B) Shipping both ways
C) Labour to vet the return and confirm original condition
D) Labour and materials for any work required to restore to original condition
E) Costs of replacing packaging

 

[Ceilimom]

i'm not in favor of a restocking fee. I know it would turn me off if I was placing an order.

To me, the bigger problem with returns is not just the lost PayPal fee, but it seems once a stone is returned, especially if it was show on PS, then it's much harder to sell it again. Its as if the stone has CoronaVirus or something. People I think assume that once one person saw it and didn't like it, there must be something wrong with it. Often the consumer photos posted here are not very good quality, with the color balance off etc. A bad photo can make a great stone look like crap. These CFL bulbs are about the worst thing that has happened to colored stones. Almost all stones suffer under them, except peridot and chrysoberyl.

The inverse is also

This idea has been promoted on another thread, which got me thinking, how many of us would actually order from someone if we would have to pay a fee to return an unwanted gem? I'm talking about in addition to paying return shipping.

Honestly, I don't think I would...

Would you order from a company that charges a restocking fee?

I am completely with you, I would think long and hard before moving on with a purchase especially if there was a restocking fee. When I am considering a purchase with an internet vendor I want that merchant to understand that any purchase needs to be examined in person. Cameras, computer screens can alter how stones come across color wise.
What I find more troubling is when the merchant isn't upfront about terms of purchase. This is what I found with Brian Gavin when I was considering one of two diamonds he has on his site.

 

[GliderPoss]

I'd be fine with it as long as it wasn't massive! Totally get why Vendor's would need a re-stocking fee - in the time I had the stone (& decided not to keep it) they could have happily sold it to someone else. Also think it's fair to pay a small fee for extra photos or videos of the stone. If this discourages sales then hopefully it would encourage Vendor's to post more pics/videos in the first place.