Refunds and guarantees -- psychology and convenience

by Richard Seltzer, seltzer@samizdat.com, www.samizdat.com

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The following article was written for GoTo Auctions (formerly known as AuctionRover). The rights have reverted to the author.



Although auction-site services, feedback mechanisms, and credit card policies provide lots of protection for buyers and sellers, many auction descriptions still include the words "refund" or "guarantee." In fact, a recent search at eBay showed 127,903 auctions using the word "refund," 146,499 with the word "guarantee," and 34,305 with both words. Clearly, many sellers feel compelled to use these words. Why? What do they gain?

With so many sellers making such claims, this isn't a feature that will distinguish you from the crowd and make people more likely to bid on your auctions than someone else's. And sellers acknowledge that by putting the words not in their titles -- where they mention the most important selling points -- but rather in the descriptions. (While 146,499 use the word guarantee; only 176 use that word in the title).

Often the words are used very loosely. Sellers say, "I guarantee that this is a genuine ..." without any mention of what happens if the statement is not true. Or they say, "satisfaction guaranteed or money refunded," without making it clear whether just the purchase price or also the original shipping cost or also the cost of shipping the goods back to the seller are covered. Such statements amount to little more than a protestation of honesty, and the more you feel the need to make such statements, the more likely you are to arouse doubt in potential bidders.

Yes, you should stand behind your every sale with the confidence and integrity of a local shopkeeper. You should do everything possible to make sure your customers are satisfied and are motivated to give you good feedback and to come back and buy from you again and again. And yes, a customer of yours should never feel they have to use other remedies -- like filing an insurance claim with the online auction site or calling their credit card company to protest a charge. Yes, you should guarantee your own merchandise, and provide full refunds (including shipping costs as well as sales price) when by any stretch of the imagination you are at fault. The entire deal -- including the resolution of any disputes -- should ideally involve just the buyer and the sellers. That keeps everything as simple, quick, inexpensive, and hassle-free as possible for everyone.

But my personal recommendation is not to go into that kind of detail in your auction descriptions. Those should be crisp clear and to the point, focusing on the important characteristics of the items you are offering for sale. Be direct and honest, including details about any flaws. Be open and friendly, with a personal touch, when appropriate. But don't say anything more than you need to.

Your offering a guarantee/refund makes problem resolution much simpler and quicker and less of a hassle for everyone. No third party needs to get involved. But you need not state that in your auction descriptions. It can just be your standard business practice -- people expect it of you.

Afterall, what would you think of a stranger who when first introduced to you insisted, "I'm honest. You can trust me. I stand behind my every word..."



This article and hundreds of related items by Richard is available, in plain text, on CD ROM My Internet: a Personal View of Internet Business Opportunities (B&R Samizdat Express, 2002) for $29. That same CD also includes the full text of his books The Social Web, Take Charge of Your Web Site, Shop Online the Lazy Way, and The Way of the Web. It is available from Amazon and from our online store http://store.yahoo.com/samizdat, where you can buy an entire library for the price of a book.

Other auction articles by Richard Seltzer

This site is Published by B&R Samizdat Express, 33 Gould St., West Roxbury, MA 02132. (617) 469-2269. seltzer@samizdat.com


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