Affiliate Articles

The How & When of Refunds

Auctions are a unique way to purchase goods. It is not traditional retail, and therefore does not function like a Target or Amazon. We want to avoid refunds, and a good way to do that is to take extra care in writing item descriptions. Make sure you are listing correctly with the proper product titles, descriptions, pictures, and use the correct product identifier:

1. factory sealed,

2. appears new,

3. open box, or

4. damaged.

(Read more about these descriptors here.)

We also want to keep in mind all of the following, as each of these seemingly small errors could provoke a refund request:

• Wrong color

• Not properly displaying damage

• Picturing the wrong item

• Labeling incorrectly

• Not having the correct # of items for what’s actually in the box

• Duplicate listings

• Using the wrong brand

• Stating that the item has been tested but it is not working

• Indicating the wrong size

Motivate your employees to cut down on refunds by making low numbers an incentive. We’ve used Equip-Bid Bucks in the past…for every lister who has no refunds at the end of the month, we rewarded them with a $25 Equip-Bid Buck voucher that they could use in your store (not online or from any other store). It ended up being a great motivator!

Ultimately, mistakes happen. We just want to make sure we’re watching for any trends that may appear and address them.

To double check all of these details, preview your auctions. Look for easy-to-miss things like if the bed is a full or a twin, if dimensions are included, is there a picture of the damage listed? Make sure the stock photos show what the customer is receiving as this might be the only thing they look at. If the chair is listed as navy but the image shows a pink chair, definitely update the lot!

Speaking of stock photos, please do not use screenshots from other sites. Lots of detail is usually included in these photos, but it may not be accurate to what is included in your lot. For instance, a vacuum may not come with all of the accessories included in a screenshot from Amazon. Even if you write “accessories not included,” because the photo includes them, you will likely get a refund request.

When you put anything in written format, remember that the person reading it cannot hear your tone or read your body language; everything is subject to interpretation. Keep this in mind when writing descriptions, and try to include sizes, dimensions, colors, and materials in your descriptions whenever possible.

You can also mitigate questions and problems by communicating the importance of inspections. Let bidders know this opportunity is for their benefit. Some of the items we sell on Equip-Bid are incomplete, damaged, or just well-loved. But that doesn’t mean they are not of value to the right buyer. Many bidders do not understand this, so it is our responsibility to make the item’s condition clear. It may take a bit more time on the front end, but it will definitely help you in the long run.

All refunds must include sales tax and buyer's premium paid on hammer. If the affiliate is at fault then the handling fee must be included in the return. 

your refund policy

Do you have a refund policy in place already? If not, we highly suggest creating one, communicating it to your staff and your bidders, and enforcing it consistently.

We have a fillable form for auction terms and conditions that can help with ideas. As you can see here, there is quite a bit of information bidders need to know that should not change from affiliate to affiliate. These are standards that protect you and Equip-Bid and help bidders know what to expect from our auctions. The information shaded in grey is editable on this form, and the information included is only a suggestion.

For the refunds sections, this second part is what you should determine based on your own company’s policy. Is there a certain timeframe that works for your auction and load-out schedule? Do you want to handle refunds case-by-case via telephone? Since these terms will vary between affiliates, we highly suggest included concise, clear information about your refund policy so bidders can read it quickly before bidding.

WHEN SHOULD YOU GIVE A REFUND?

Providing the chance for bidders to request a refund can either be a time-suck for you or a good way to quickly handle issues with bidders. You just want to make sure you’re not allowing bidders to take advantage of you. If you put in the extra work up front of listing and picturing correctly, there is much less chance of needing to provide a refund as the onus is on bidders to look through listings thoroughly.

We also see troublesome return bidders that constantly ask for refunds. What should we do about them? Here’s our advice:

• Rely on each other – check in with your fellow affiliates and see how they’re doing with their refunds and policies.

• Your phone number and email must be accurate on the website. Check your voicemail and email inbox and be available during work hours. If bidders are unable to get ahold of you with questions, they might end up winning the item and causing a riot over a refund that could have been avoided.

• What is your hold item policy? Make sure your customers know it – post it at your load out location, on your website, and on any social media you use.

• PUSH PUSH PUSH for inspections.

• Do you have a day you might be open (say a Saturday) if you are having a lot of questions on a particular auction or item? Have a special time for people to come and inspect.

In the end, you might say no to a refund, but if the customer is set on it, they will dispute the charge and we are then faced with a chargeback. Make sure that you are being firm, fair, and consistent with your refunds to avoid this.

HOW TO PROCESS REFUNDS

So, you’ve determined a refund for an item or invoice is necessary—what’s the next step? The process on Paytrace is super simple! Watch this video that quickly walks you through the process.

When you process a refund, make sure your bidder receives an emailed copy of their receipt. Let them know that it depends on their bank as to how long it takes to process a refund, bt usually this is between 7-12 business days. Sending an email of the receipt shows that we submit the refund in a timely manner and greatly limits the number of inquiries we receive about refunds.

TAKEAWAY

As a takeaway from this first webinar with The Thursday Morning Show, we encourage you to fill out your terms and conditions, paying particular attention to the refunds section. Some of our affiliates have the staff, time, and systems in place to process refunds on almost everything, while others just don’t have that capacity. Maybe take a look around the website at others’ refund policies and ask your fellow affiliates on Slack if their system has worked well for them.