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my bet is on tax shenanigans. The $100 item costs us $108 due to sales tax, it cost the seller $40-$60 to produce, but it only costs them $20-$40 (possibly more
by gosub100 3y ago
my bet is on tax shenanigans. The $100 item costs us $108 due to sales tax, it cost the seller $40-$60 to produce, but it only costs them $20-$40 (possibly more) for a refund because they can write off the loss.
- mindslight 3y agoThat doesn't make sense. In general, "write offs" just means subtracting a cost from profit, along with the cost they pay for the items that are successfully sold. (Unless you know some special tax result that allows them to deduct more than the price of the damaged item) I'd guess it's something to do with the margin being much much higher than we imagine. Like it's sold for $100, but it only costs $10-$20 incremental cost to produce. Hence why I'd think the manufacturer would be eating returns, because that allows them to keep their margin higher.