What exactly is a Restocking Fee?

[El Orans]

Either way, you pay for it.

There's a restocking fee or all customers pay for those customers who return articles.

TANSTAAFL...

 

[jviehe]

Think of it as savings to those who dont return items. Assuming there is a justification that returning an item costs a business money, which the biz owners who have replied have indicated, then were a business not to include restocking fees, they would have to include the cost of returns into the price of the product for everyone. In effect, the business is rewarding customers who choose wisely.

100 widgets sold for $10 makes a biz 1000 dollars
1 widget returned costs the biz 1 dollar

If 50 widgets are returned, that $50 has to either come from those who returned it or tacked on to the price of all widgets, and thus raises the price of the widget even for the guy who doesnt return it.

 

[bythesea]

Ok. A store has 10 generators. A storm is forcasted. He's happy because now he's going to sell all 10 at $1000 each. The generators are now sold. That's $10,000 made.
,,,,,,,,,,,,
That's the way I see it.

Good point if the Keebler Elves are making generators for free and supplying them to the store,,,:lightbulb,,,Last time I looked Keebler Elf cookies were about $4. They make them with elfin magic so thats $4 of PURE profit to the store,,,,If I had some elves I'd open an LDS and make HUGE profits and never ever ever charge restocking fees to the vast majority of people who use returns as a convenient "loan" of goods. Our motto,,, "Thank you for wasting our time,,,Please come again"

 

[mike_s]

In some cases it's clearly warrented is right. In all cases? Not. Imagine if Walmart decided that they will no longer accept returns of ANY item. People will take their money to another store and Walmart will file for bankruptcy. Businesses have to accept that returns is part of business. Does Walmart go broke because massive amounts of people are returning things? I think not.

.

You can take anything back to walmart. They don't seem to care. reciept or not. (If you don't have a reciept, they just issue you a store credit on a gift card).

But try taking something back to Target. What a pain in the butt.... heh.... if you don't have the reciept, fat chance. They enforce their return policy. I bet it keeps overhead down though.

 

[all4scuba05]

yeah and keeps more people shopping at walmart too

 

[all4scuba05]

For all those in favor of the fee, is there such this as too large a restocking fee?

 

[froggs]

I know for me the biggest reason a restocking fee is applied is to cover the credit card transaction fee's. The initial purchase transaction costs are not too bad and factored into my selling prices, but refunds and returns to credit cards eat me alive. The fee for a refund on to a card for a small business is pure piracy, and more often than not the items I have the biggest problem with this is wetsuits, where the customer could try it on in the store but doesn't want to.

What are the fees?? I seem to remember hearing 2% from someone. Are the transaction fees set in stone, or are they based on "client tiers"? Are the return fees the same as the initial purchase fees?

 

[DBailey]

If the store would change the terminology around, I bet a lot more people would understand the fee.

Use Fee - it is store policy that all returned merchandise that has signs of useage will have a 20% use fee associated with the return of the item. Defective merchanise will be exchanged for the same item at no charge.

Opened Item Fee - since most customers will not pay full price for an item that has been re-packaged the following fees will be assessed based on the state of the return:

-- 10% fee on opened items where the original package is 100% in tact and all documentation is included with the item. We will re-sell the item at 90% of the original value (but not to you at that price).

-- 20% fee if the opened item's packaging was damaged or documenation is missing. Would you pay full price for an item in this condition?

 

[AbyssalPlains]

"Rip-off" didn't sound good enough to the marketing people. So they came up with the term "restocking fee" instead.

That's all.

 

[all4scuba05]

I wonder what happens if we all voted with our dollars like someone said. Whenever a shop decides that it wants to charge us 33% restocking fee on a BC($200) we boycott them or picket out front