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How is this going to work for businesses in the EU where customers are allowed to refund for no reason when buying things at a distance?
by Dayshine 4y ago
How is this going to work for businesses in the EU where customers are allowed to refund for no reason when buying things at a distance?
- kasey_junk 4y agoBusinesses will increase costs to cover it, just like they do now.
- Silhouette 4y agoHow will that help in the scenario the GP described? The businesses would still have to refund those higher charges.
- suzakus 4y agoI think the scenario is that in the case of normal purchases, your profits need to be higher to cover these fees on any returns.
- Eisenstein 4y agoEveryone pays more for everything the retailer sells until their revenue and costs ratios match roughly as they did before, with variation depending on competition intensity and elasticity of the products sold.
- dylan604 4y agoEveryone else that bought something at the higher prices covers the fees when the much smaller number of people request the refund. So it is essentially crowd funded
- crote 4y agoRaised prices. The company I work for alrady has to pay a 3% charge on payment returns. Take 3% of the product price, multiply by the expected rate of return, and add that as a hidden fee to the new product price.