Before you think of e-commerce. Think of your refund policy and procedures


And not just how to give the money back, but also how you can get your goods back in your warehouse.

Most clients just want to sell on the internet. I tell them that it is like getting married and imagining that life will be "happily ever after".

No such luck guys! You get customers who will hold you and Visa to the 100% the refund guarantee you issued. Visa will side the customer, not you in the dispute. You end up having to "return" the money (100%) + pay for the freight incurred to send to the customer + pay the bank charges + pay for the freight to get your product back + the product's repair cost as it was damaged slightly in transit.

I talk alot about how good a candidate a product is for e-commerce business. The candidacy depends on how much the profit margin is like. If it is 10 - 15%, I would say "Get Out!". If it is 40%, I would say "Maybe". But it is really the 70% range, maybe it will work. This is because your cost is low and you can afford to "Not Collect Back" your product if the sales fail.
Shane Wong / 24 Nov 08, 11:07
 


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