Handling international returns
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Created by: Ryan W
Modified on: Wed, 17 Mar, 2021 at 1:55 PM
Here at RealArb we have made it extremely easy to account for international returns. In addition to the other variables that go into the items published price, we also include a return neutralization cost.
Return Neutralization Boost - This is a additional markup to your listing that goes to you at the time of sale. All items are published with this as an up-charge. This charge is added to neutralize the cost associated with international return management, which can be costly. Thanks to this margin boost you can rest assured knowing that losses due to returns are accounted for.
It is up to you how you would like to approach returns operationally. No matter your operational selection the return neutralization up-charge will remain to assist you. Here at RealArb our preferred method for handling returns is to refund the international customer and allow them to keep the item. The return neutralization up charge completely covers this operational method.
Just like for domestic marketplaces you will receive a full concession of the RealArb fee for any order that was cancelled or returned to you. To learn more about what you have to do to make sure you are getting these concessions, please check out our article: Entering Information into your dashboard
Other options
It is up to you how you would like to approach returns operationally. No matter your operational selection the return neutralization up charge will remain to assist you.
1. Getting the return sent back to your location for processing - One option is providing the international customer a return label so that they can send you back the item.
Benefits
You able to retain possession of the item
You may be able to return the item to the source you purchased it from for a full or partial refund
You can relist the item and attempt to sell it at a profit domestically or internationally
Downsides
International return shipping labels can be expensive
Due to the longer ship times that accompany international logistics you may miss the return window from the source you purchased it from and not be able to return the item for a full or partial refund
2. International FBA facilities - One option that works for some clients is sending all returns to an FBA facility in the country where the item sold. This is done by going through the process of sending an item to an FBA facility in that country, for the item being returned, and providing the shipping label to the customer who is returning the item.
Benefits
You are able to retain possession of the item
You do not have to pay the high cost of a international return label
You may be able to resell the item at a profit
Downsides
Since it will now be a domestic sale, depending on the country there may be tax implications
It is not a guarantee you will be able to resell the item
Although very inexpensive there may be FBA storage fees
Ryan is the author of this solution article.
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