Dear BAKERY,

As a small business owner dealing with some large-sized customers I often find it to be a challenge when handling returns, especially the return of seasonal goods. Large vendors can (much) more easily swallow the loss involved in returned goods compared to a small business like mine. I know that in order to “play in the big leagues,” so to speak, I also have to have a similar policy. Even with a restocking fee, having returned goods definitely affects my bottom line. However, losing a customer because of this would be a shame. Any advice?

Love,
Stockpiled

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Hi Stockpiled,

Ugh, the dreaded restocking fee. I can see how one customer or two customers who are just the average Joe were to purchase something then decide they didn’t want it, that they could return it. Usually shops ask for a 10% restocking fee, and sometimes no fee at all.

But, I guess I am confused as to why you are allowing large customers to return items? How many items are being returned at once? Are these vendors that are purchasing wholesale? In my opinion, if you are a company and you place an order with another company — once you buy it, it’s yours. It should no longer be the original sellers’ problem after that. These vendors should order what they think they need and reorder more if they begin to run out. If they’ve ordered way too many items and you’re accepting items back in stock, it might be a good idea to up your restocking fee to dissuade them from over-purchasing. Everyone loses money with seasonal items that don’t sell. It’s your choice whether you want it to be you or them.

Another thing you could do is look at the past history of these clients and see how many items they have ordered in the past and then how many came back to you. Suggest that they order a few less than they did last year and remind them how many items they sent back, along with the fact that they spent extra money on restocking fees. Try to act like you’re really thinking about saving them time and money by not having to send anything back to you. They will appreciate that you have their best interest in mind.

If you find that it really puts you at a loss and you feel there’s no way out, you can opt to mark seasonal goods as “final sales”. That would eliminate your problem altogether

Love,
BAKERY