10/19/2012 - Voices Call Overview: Managed Returns

eBay launched the US managed returns pilot in July and we recently held a call with members of our Voices team to reach early adopters and find out what’s working well and what isn’t working as well with the process. We’re excited to share with you information and feedback we gathered from the call, which will help us prioritize our efforts to make the managed returns process the best it can be.

Here are the main steps of how the new managed returns process works:

1. Sellers opt in to the managed return process.
2. When a buyer needs to return an item, they click the return button and choose a reason for the return from a menu of choices. A return shipping label is generated and available for the buyer to print and use for shipping the item back to the seller.
3. At the same time, eBay automatically notifies the seller that a return has been initiated by the buyer. eBay pays for the return shipping up front, then charges the buyer or the seller as appropriate.
4. After the buyer ships the item back, the seller is notified that the item has been shipped. The seller can then go into eBay to issue a refund to the buyer.
5. The final value fee for this transaction automatically appears as a credit on your next seller invoice.

We collected valuable feedback from the sellers on the call—thank you!

Some of the topics discussed include:

• SNAD (Significantly Not As Described) returns
  There were concerns that the new process can increase SNAD activity returns from buyers. eBay is monitoring this closely and is making ongoing adjustments, including adding a "wrong size" reason code released just this month for fashion returns. Currently fewer than half of buyers are using the SNAD return reason code. Based on the feedback from the meeting we’ll be looking into other improvements to the SNAD flow.
• Shipping rates for returns
  

  At times shipping rates for returns are higher than the original shipping cost. There are two things to consider when comparing a return: shipping rates and outbound shipping rates.

  First, return shipping rates are currently averaged across all zones to simplify pricing, so there is not a direct 1:1 comparison. Based on seller feedback, our returns team will be looking at changing the pricing to include zones, so that it’s more transparent.

  Secondly, a different level of shipping service may be used for returns. As an example, with outbound shipping, you are charged for the shipping the minute the label is rendered, regardless of whether you use it or not, but with the return label you are only charged once the label is scanned by USPS. This protects the seller from buyers who never return the item. As a result, USPS does not offer the same rates as outbound for returns. There is no flat-rate pricing, media mail, etc.

• Buyer education
  The returns process currently allows buyers to process a return without contacting the seller. Some of the sellers on the call expressed a preference for this approach, as it frees them from the back and forth of Member to member messaging and protects them from a buyer who tries to negotiate returns. Others don't like this, as it takes them out of the returns communication and does not allow them to personally service the customer.
• An option for exchanges.
  The ability to do exchanges in addition to refunds is on the 2013 features roadmap.

Many sellers shared common feedback on what they like about the managed returns process:

1. They like getting final value fees back automatically
2. They like getting return labels delivered to the buyer through the system
3. They found it easier to refund the buyer with the simplified return flow

Thank you so much for taking an active role in making eBay the best place to do business!
We hope you find this information helpful, and we welcome any additional feedback you may have on the new managed returns process. You can send questions and/or feedback to DL-eBay-Returns-Questions@ebay.com or participate in the returns discussion board, which is monitored by members of eBay's returns team. As always, thank you for selling on eBay!