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Your Opinion On A Situation With A Cusotmer.


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This is kinda bouncing off of AmScray's thread of his friend with the vending machines (Stealing, Or Clever Angle To Gather Up Fools Money?).I recently had a situation with a customer of mine and I wanted to get people's opinion on it:I'm partners in an ecommerce business and we sell through multiple channels, (i.e website, eBay, Amazon, Overstock and so on...)For the most part we advertise our products at the same price over all sales channels, but if there is less competition for a specific product on a particular sales channel then we will raise the price as much as we can, even though it may be priced less on our main website or other channels.A customer orders 6 of an item that is advertised at $8.99 + $9.99 S+H each. His total comes $113.88 he agrees to this total at checkout and proceeds with his order. The MSRP on this item is $9.99 however, we do advertise this product through other sales channels for as low as $4.49 + $4.50 S+H. We purchase this product for $4.00 and like a lot of ecommerce businesses we make money on products like this primarily off of shipping fees.Now, this item only weighs 2oz each and we were able to fit all six of them in a 4x4x4 box and ship it First-Class Mail and have it delivered to the customer in a timely fashion. The shipping only cost us $2.53 (customer doesn't know how much we paid for shipping), even though the customer paid $59.94 for shipping.After receiving the product the customer complains about the shipping cost being to expensive for such a small box that he received and is requesting a credit for all of or most of his shipping charges.I stood my ground and insisted that we did not mislead or misrepresent the product in anyway and it was delivered on time and as he requested. Also, I reiterated to him that he did add all of the items to his basket and was given the total at checkout and still decided to proceed with the purchase.He then goes comparison shopping around the web and finds us selling it for $4.49 + $4.50 S+H on a different site and demands he be credited the difference.BTW, our return policy on non-defective products is that we do not refund shipping and there is a 20% restocking fee.Keep in mind that this customer is already probably never going to shop with us again so I don't really care about losing him as a customer. Let me know what you think. Also, please keep in mind that we are not a company that rips off people left and right, for the most part our average net is about $10 per order, but we depend on doing large volume. We are very aggressive and competitive in our pricing and for the most part we have the lowest prices when compared to our direct competitors. We have a 97% positive feedback rating across all channels from our customers.

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You charge $60 for shipping.It costs $2 to shipSeems unethical, even though it may not be "deceptive" under the law.Its your business, but I would adhere to a bit more honesty on your prices, especially shipping. I'd give the customer some credit or ship him some free product.

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Keep in mind that this customer is already probably never going to shop with us again so I don't really care about losing him as a customer.
done.if above wasn't true, i'd consider a credit to future orders. in fact, you can do that anyways. but if he's not going to be an ongoing customer, and your conscience is clear.....
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You charge $60 for shipping.It costs $2 to shipSeems unethical, even though it may not be "deceptive" under the law.Its your business, but I would adhere to a bit more honesty on your prices, especially shipping. I'd give the customer some credit or ship him some free product.
We charge $9.99 each for shipping not $60. He ordered 6 of them, therefore he was charged $9.99 x 6. If the customer had ordered 1 unit and paid $8.99 + $9.99 it would have still cost us about $2.00 to ship it.
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While it's kind of weird that you don't offer any kind of bulk shipping prices if it only costs you $2, you were very up front about it and he has no right to complain. As for pricing lower elsewhere online, that's just a fact of life, whether you're shopping online or at B&M locations...it's his fault for not comparison shopping before the purchase.

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As long as you didn't lie and as long as you charged him what he agreed to pay, you're free to charge whatever you want for whatever you want. Isn't that how economics works?

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While it's kind of weird that you don't offer any kind of bulk shipping prices if it only costs you $2
Typically, we do. It's just that on this particular product and sales channel there is very little competition and so we'll try to get as much as we can for the product.
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This is kinda bouncing off of AmScray's thread of his friend with the vending machines (Stealing, Or Clever Angle To Gather Up Fools Money?).Keep in mind that this customer is already probably never going to shop with us again so I don't really care about losing him as a customer.
That statement right there is what is wrong with business today.What you are doing is unethical. Charging him $50+ too much for shipping may even be theft/illegal. If it isn't it too is at least unethical as well. It is no longer about suppling the customer with good service, good product at a good and fair price. It's I will never see or hear from this customer again so I will take him for as much as I can and if he complains then oh well cause he signed for it so it is his fault that I charged him way more than I charged the next guy.
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You're totally solid to do this and yes, it's standard in e-commerce; you just have to understand that when a customer pays $60 for shipping and it arrives in a box with $3 actual postage, they're going to raise hell, never shop with you again, post how terrible you are on ripoffreport, etc, etc, etc.Also, consider that while you may snag morons, you're missing out on huge numbers of people who are wise shoppers and immediately look elsewhere for their multiple-item purchases when they see your shipping fees cannot be combined. In a way, grossly excessive shipping costs are akin to suckerfishing, ala pawn brokers, used car salesmen, etc; where they think they're doing better by screwing one person out of $100 than they would if they made $20 a pop off twenty different sales conducted within a more realistic price framework. On ebay, how many times have we seen items with 22 bids sell for $100 bid/$5 S&H when that exact same item was purveyed by another seller for $69.99 BIN/$20 shipping without any bidders? People are naturally averse to excessively high shipping costs and if I ran a viable e-commerce business, I wouldn't do that. I do LOL whenever I see someone on ebay selling a $60 electronic gadget with a .01 Buy It Now price, but $59.99 shipping- then you read their feedback and sure enough, there's a bunch of retards complaining about the shipping costs. Rule #1 in life is that statistics dictate all people are stupid until proven otherwise.

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That statement right there is what is wrong with business today.What you are doing is unethical. Charging him $50+ too much for shipping may even be theft/illegal. If it isn't it too is at least unethical as well. It is no longer about suppling the customer with good service, good product at a good and fair price. It's I will never see or hear from this customer again so I will take him for as much as I can and if he complains then oh well cause he signed for it so it is his fault that I charged him way more than I charged the next guy.
No. This is just silly.
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That statement right there is what is wrong with business today.What you are doing is unethical. Charging him $50+ too much for shipping may even be theft/illegal. If it isn't it too is at least unethical as well. It is no longer about suppling the customer with good service, good product at a good and fair price. It's I will never see or hear from this customer again so I will take him for as much as I can and if he complains then oh well cause he signed for it so it is his fault that I charged him way more than I charged the next guy.
I'm just a realist. I felt that he was already too pissed off and issuing him a credit would just be a waste and we'd never see him again regardless. Although we do have a lot of repeat customers, it is very rare to see an ecommerce customer return to you 5 times within a small time frame. I say 5 times because this is how many additional average orders we would have to have received from this customer to make up the credit that we would have issued.As I stated in my last paragraph in the original post, this is not a normal thing for us, but hey if the customer is willing to pay for it then we're going to charge as much as we can. What business owner doesn't think like that? We did offer and deliver the service and product as we advertised.If we had shipped the item lets say UPS or FedEx Ground, which we used to do, it would have cost us about $8 in shipping, even if he had purchased one unit. The fact that we are smart enough to see a savings in costs by shipping a different method but still getting it to the customer on time isn't something that we should be scalded for...
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You're totally solid to do this and yes, it's standard in e-commerce; you just have to understand that when a customer pays $60 for shipping and it arrives in a box with $3 actual postage, they're going to raise hell, never shop with you again, post how terrible you are on ripoffreport, etc, etc, etc.Also, consider that while you may snag morons, you're missing out on huge numbers of people who are wise shoppers and immediately look elsewhere for their multiple-item purchases when they see your shipping fees cannot be combined. In a way, grossly excessive shipping costs are akin to suckerfishing, ala pawn brokers, used car salesmen, etc; where they think they're doing better by screwing one person out of $100 than they would if they made $20 a pop off twenty different sales conducted within a more realistic price framework. On ebay, how many times have we seen items with 22 bids sell for $100 bid/$5 S&H when that exact same item was purveyed by another seller for $69.99 BIN/$20 shipping without any bidders? People are naturally averse to excessively high shipping costs and if I ran a viable e-commerce business, I wouldn't do that. I do LOL whenever I see someone on ebay selling a $60 electronic gadget with a .01 Buy It Now price, but $59.99 shipping- then you read their feedback and sure enough, there's a bunch of retards complaining about the shipping costs. Rule #1 in life is that statistics dictate all people are stupid until proven otherwise.
See post # 7... We normally do have a sliding scale that charges shipping based on weight and not per item. Also, just because we shipped it via USPS doesn't mean that we put actual stamps on the box or that the customer is aware of how much it cost us to ship. We use a USPS commercial solution that hides the actual cost of shipping.
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You charge $60 for shipping.It costs $2 to shipSeems unethical, even though it may not be "deceptive" under the law.Its your business, but I would adhere to a bit more honesty on your prices, especially shipping. I'd give the customer some credit or ship him some free product.
While it's kind of weird that you don't offer any kind of bulk shipping prices if it only costs you $2, you were very up front about it and he has no right to complain. As for pricing lower elsewhere online, that's just a fact of life, whether you're shopping online or at B&M locations...it's his fault for not comparison shopping before the purchase.
I agree that the guy agreed to pay that price and shouldn't complain now. It does seem strange to me that when someone orders a multiple quantity of the same item that you apply the shipping cost to each unit. In my opinion, to be ethical, your shipping charges should correlate with the size/weight of the goods being delivered + a healthy mark up, not marked up and then multiplied by unit. But that is your decision and he saw the total before he paid, so he should have pulled out at that point.Really though, charging $60 for shipping that cost you $3? That just seems mean to me. Even to charge $20-30 seems reasonable and still gives you a good profit. Like I said, charging by unit doesn't make sense and is pretty hard on the consumer, even if they do have a choice not to shop with you.EDIT: a bunch of stuff was posted after I started typing that addressed/covered everything I said here, so this post is totally pointless now.
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1 school of thought would be that he agreed... end of story. If you agree to pay a million dollars for shipping... pay it... end of story.Another school of thought would be that your "company" is ripping people off by charging high shipping costs in an effort to dodge ecommerce fees. After finding that the exact same thing could be purchased at almost half the price...from the same company... and said company wasn't willing to satisfy the customer... I could say that I would never do business with said company again. I would also make it my charge to inflict an amount of damage on said company equal to the amount I felt I was ripped off by.There's 2 ways to do business:Screw you... I got your money.. too late.orHow can I make you a satisfied customer.

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1 school of thought would be that he agreed... end of story. If you agree to pay a million dollars for shipping... pay it... end of story.Another school of thought would be that your "company" is ripping people off by charging high shipping costs in an effort to dodge ecommerce fees. After finding that the exact same thing could be purchased at almost half the price...from the same company... and said company wasn't willing to satisfy the customer... I could say that I would never do business with said company again. I would also make it my charge to inflict an amount of damage on said company equal to the amount I felt I was ripped off by.There's 2 ways to do business:Screw you... I got your money.. too late.orHow can I make you a satisfied customer.
Oh my god... I actually agree with something HollywoodAFD said. I don't know whether to be impressed, suspicious, or worried.
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It seems like most of you didn't read or refuse to recognize this paragraph so I'll post it again.

Also, please keep in mind that we are not a company that rips off people left and right, for the most part our average net is about $10 per order, but we depend on doing large volume. We are very aggressive and competitive in our pricing and for the most part we have the lowest prices when compared to our direct competitors. We have a 97% positive feedback rating across all channels from our customers.
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It seems like most of you didn't read or refuse to recognize this paragraph so I'll post it again."Also, please keep in mind that we are not a company that rips off people left and right, for the most part our average net is about $10 per order, but we depend on doing large volume. We are very aggressive and competitive in our pricing and for the most part we have the lowest prices when compared to our direct competitors. We have a 97% positive feedback rating across all channels from our customers."
Saying that you are not a company that rips off people doesn't make it so. You said yourself that you made around $50 on shipping alone off this guy. How does that amount to an average net of $10?
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That statement right there is what is wrong with business today.What you are doing is unethical. Charging him $50+ too much for shipping may even be theft/illegal. If it isn't it too is at least unethical as well. It is no longer about suppling the customer with good service, good product at a good and fair price. It's I will never see or hear from this customer again so I will take him for as much as I can and if he complains then oh well cause he signed for it so it is his fault that I charged him way more than I charged the next guy.
no.and lol at "ethical" in a free market economy.
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Saying that you are not a company that rips off people doesn't make it so. You said yourself that you made around $50 on shipping alone off this guy. How does that amount to an average net of $10?
Although I know this is a fake account I'll still reply.It's called an average. There are some orders in which we will only net $1.00 or even loose money on...
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I stood my ground and insisted that we did not mislead or misrepresent the product in anyway and it was delivered on time and as he requested. Also, I reiterated to him that he did add all of the items to his basket and was given the total at checkout and still decided to proceed with the purchase.
You mislead and misrepresented your shipping costs to your customer. Yes, that's unethical. Do you care? Apparently not. What's the question you want us to answer?
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Dude, it's been mentioned a couple of times in the thread already but I'll mention it again. Charging the shipping cost for each individual item just seems scummy to me. Who the hell does that? Certainly not a company who claims to "not rip people off."

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