At person-to-person auctions sites, such as eBay or Gold's Auction, sellers who offer a policy for returns attract bids by putting potential buyers at ease. It's an implied guarantee of customer satisfaction, and a panacea for those still leery of buying merchandise through online auction venues. Many auction sellers refer potential buyers to their personal page, such as an AboutMe page on eBay, for information about how they handle requests for refunds or exchanges. Other sellers include this information in an auction's description.

From a buyer's perspective, how a seller handles returns often can help determine whether a bid will be placed.

Standard Return Policy
A seller's return policy should get right to the point: "I accept returns if you notify me within three days after receiving the item. I will issue refunds within 30 days, and only after I've inspected the returned merchandise."

Be sure the policy is clear and understandable. If you refer buyers to an information page, be sure it's a direct link. Don't make your customers hunt around. Be aware that buyers may have more confidence in a return policy stated right in the auction description, since they know you usually can't change it once an auction closes.

Seller's Position
It's probably the last thing you want to think about when you list an auction, but a stated return policy offers a few key benefits, including:

Don't panic when an email arrives with "Need to return item" in the subject line. Not all returns are necessarily a bad experience. Occasionally, a buyer will return an item and request one of higher quality for an additional cost. Any online transaction that remains pleasant could lead to more business. However, don't let your caution down when agreeing to reverse the transaction.

It's wise not to issue a refund until you've checked the item. Unless you know the buyer, never send a refund without the returned item in hand and verified. A seller should clearly reserve the right to take a specified amount of time--normally three days--to inspect the item before agreeing to proceed with a refund.

Seller's Responsibility
You need to settle a few things with your customer before he or she ships the item back. First, determine whether the buyer wants a refund or a replacement. If it's a handmade item, agree in advance whether you'll accept the return, and specify whether you'll repair it or replace it. Above all, insist that the item reaches you in the same condition as it was sent, with the original packaging.

When you receive the returned package from the buyer, unpack it promptly. Examine the item to be sure it's the one you sent out. (Be mindful of the buy and switch routine.) If the situation merits a refund, send the funds within the period specified in your return policy.

If you're selling sealed products not visible through their original packaging, such as new electronic equipment or cosmetics, you almost have to take the buyer's word for it if the product was damaged or incomplete when it arrived. Denying a return may cost you future business, result in complaints about you to the site, or earn you negative feedback.

Next Page | What about the buyer?

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