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Distance Selling Regulations

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  • Distance Selling Regulations

    I run a website that has a sale page which offers some really good bargains on it, ie ladies fashions.
    These same things are freely on sale in the shop itself but we do get many people from all over the country and abroad buying directly from the website. This incurs a cost for postage.
    I explain quite clearly on the Terms and Conditions that in the event of a purchase being returned we will happily refund the cost of the garment but not the cost of postage. This would make the operation of this facility prohibitively expensive and maybe even running it at a loss.

    I am now aware of the Distance Selling Regulations ( I knew of them before but as they are so complex didn't fully understand them ) and can now see that I MUST also refund postage.

    All the customers I've spoken to about the need to refund only the purchased item cost see the sense in this and fully agree to a non refund of postal costs.
    However this is still a legal requirement.

    Can I include a phrase such that the customer waives their right to a refund of postage? I know that anyone can make such a waiver to their Human Rights according to law but does it stand up in this instance? Could I make the postal charge a donation to the shop for expenses necessarily incurred etc or am I really stuck with this absurd situation?

    The likes of the main high street retailers are fully able to meet this legislative burden due to their overwhelmingly high profile but the small shops have a difficult enough time meeting their costs already.
    Any suggestions anyone?

  • #2
    Re: Distance Selling Regulations

    Why are people returning the goods, because they have changed their minds?

    Any changes you make to your terms and conditions may be challenged if they are considerd to be unfair. As the regulations state that refunds must include postage costs, then you cannot attempt to circumvent this in your terms and conditions.

    Why not include the postage in the cost of the item and offer "free" post? How much is postage costing you?

    Comment


    • #3
      Re: Distance Selling Regulations

      You've got to be VERY careful with this, one of the large mail order firms has just been seriously stung for non refunding the postage costs. I hope you find an acceptable work around.

      Comment


      • #4
        Re: Distance Selling Regulations

        Originally posted by Cetelco View Post
        Why are people returning the goods, because they have changed their minds?

        Any changes you make to your terms and conditions may be challenged if they are considerd to be unfair. As the regulations state that refunds must include postage costs, then you cannot attempt to circumvent this in your terms and conditions.

        Why not include the postage in the cost of the item and offer "free" post? How much is postage costing you?
        If only it were that simple. The problem is that for Special Occasion outfits, women are so undecided. They cannot even make their minds up in the shop itself despite being confronted with, and trying on dozens of outfits.
        All sorts of factors crop up. Wrong colour (despite them having asked for that particular colour in the first place), wrong size (she didn't look anywhere near a size 16 when she walked in but we had to be polite and bring her 16's down to try on anyway. I guess you get the drift.
        Let me point you to an instance from this morning's emails. A lady has told me she wants to try on 3 outfits from the website. She asks whether she has to pay for them all now etc. As each outfit attracts a £12.50 Special delivery cost with associated purchase of parcels etc, we stand to get at least 2 of the 3 items back. In fact we may even get 3 of them back. We have no problem with her "trying" 3 outfits. We do have problems if we have to refund ALL postal costs though. You can see why the percentage of returned goods is so high from this instance too.
        So the same thing applies to the website. In fact around 78% of all goods sent out are returned. No problem with the quality though.
        To increase the cost of the sale item by an unknown factor due to the anticipated number of returns we get is impossible. It would make the outfit more expensive than a genuine off the rail price so negating the meaning of "Sale Price."
        What I'm looking at doing is something more in line with the normal service we offer.
        We are always prepared and quite often do, send new outfits to an enquirer just so she can try it on for size, or see the colour, or even get her daughters opinion. These aren't sale priced goods. They aren't bought up front either. All we do is to take a security deposit of up to the actual cost of the item ( most at 50% cost) in case of them disappearing forever with our goods. The postal charges for this are never refunded as they are just sampling the outfit. I don't think there's any legal issue with this.
        So I cannot see any reason why I can't take this a step further by not advertising them with a Paypal button for example but with a button that allows them to make a security payment until the customer decides she would like to buy it after consultation.
        Furthermore, by having a shop that has the bulk of business I think I should fall within the category of not having a substantial distance selling profile for exemption purposes.
        The government shouts from the rooftops about the great opportunities for internet based business then sticks us with a totally unworkable set of regulations.
        I know they're in the process of merging all the relevant legislation to make it more comprehensible but have been advised that the refund of postal costs will still at the expense of the retailer.
        I've written to a couple of trade bodies on this lately and am waiting for a response.
        Last edited by Lynnzer; 20th August 2010, 13:17:PM.

        Comment


        • #5
          Re: Distance Selling Regulations

          Most who sell on-line have made the decision to incorporate the price of postage into the selling price. Also, offering free shipping is an advantage!

          Comment


          • #6
            Re: Distance Selling Regulations

            Originally posted by Lynnzer View Post
            I run a website that has a sale page which offers some really good bargains on it, ie ladies fashions.
            These same things are freely on sale in the shop itself but we do get many people from all over the country and abroad buying directly from the website. This incurs a cost for postage.
            I explain quite clearly on the Terms and Conditions that in the event of a purchase being returned we will happily refund the cost of the garment but not the cost of postage. This would make the operation of this facility prohibitively expensive and maybe even running it at a loss.

            I am now aware of the Distance Selling Regulations ( I knew of them before but as they are so complex didn't fully understand them ) and can now see that I MUST also refund postage.

            All the customers I've spoken to about the need to refund only the purchased item cost see the sense in this and fully agree to a non refund of postal costs.
            However this is still a legal requirement.

            Can I include a phrase such that the customer waives their right to a refund of postage? I know that anyone can make such a waiver to their Human Rights according to law but does it stand up in this instance? Could I make the postal charge a donation to the shop for expenses necessarily incurred etc or am I really stuck with this absurd situation?

            The likes of the main high street retailers are fully able to meet this legislative burden due to their overwhelmingly high profile but the small shops have a difficult enough time meeting their costs already.
            Any suggestions anyone?

            Hi
            In answer to your orriginal question, i am affraid that section 14 of the distance selling acts says postage must be returned and section 25 says no contracting out so you cannot put a disclaimer on your website

            sorry
            peter

            Comment

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