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Is 20% re-stocking fee acceptable?

 
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Metsy
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Joined: Jan 19, 2005
Posts: 5
Location: Australia - travelling thru Europe, UK

PostPosted: Tue Apr 19, 2005 4:00 am    Post subject: Is 20% re-stocking fee acceptable? Reply with quote

I recently purchased a SDIO GPS (no name, no brands till I have your opinion. – OK?) to be used with a HP iPAQ 2215 from an eBay supplier. The item needed 'driver' software on the iPAQ. I was not able to get the item to work with my iPAQ. I talked to the vendor who informed me that there sometimes were driver 'issues' and sent me a link to HP’s updated driver. It still would not work. At the vendors suggestion I attempted to contact the manufacturer by email but got no reply. In fact after about 10 days I got an response saying the email had been deleted without being read!

I then spoke again to the vendor and arranged to buy an alternative (compact flash GPS) which, at least, works. (It’s not as small and I won’t be able to use it with an O2 phone when I get one but, as I said, at least it works).

I still do not know what the problem was. Perhaps the hardware was faulty. Perhaps the problem is with the driver software. The HP iPAQ 2215 is specifically listed in the advertising as being compatible.

The vendor charged me a 20% 're-stocking' fee. It is my view that if the hardware is/was faulty it should be regarded as warranty. If the driver quality is such that it will not work with a device with which it is supposed to be compatible then I question the advertising and fitness-for-purpose?. Either way I think the restocking fee is harsh. Essentially the vendor is making a profit on two items after having supplied unsuitable goods in the first place. Especially after ending up with a lesser product than I initially tried to purchase.

What is your opinion?

If you think the vendor is being unreasonable I’ll ‘name and shame’.

Thanks
Regards
John
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Dave
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Joined: Sep 10, 2003
Posts: 6460
Location: UK

PostPosted: Tue Apr 19, 2005 7:02 am    Post subject: Reply with quote

Unfortunately, yes. The consumer has driven the market down so that retailers now get iin most cases less than 20% gross profit on any item they sell. If you return it and the packaging is now opened/damaged and can't really be sold as new, then they will have to sell it at a reduced cost (usually -15% to -25%) which means in a lot of cases they are then selling the product below their buy price.

Usually a 15% to 25% re-stocking fee if the item isn't faulty is deemed normal, but in theory you are agreeing to this when you purchase an item because you agree to be bound by their terms and conditions on purchase.

I know it's not nice, but if an item doesn't work in your device (but isn't faulty) then the retailer has to try and not make a loss on the item when it's returned and are well within their rights to issue a re-stocking fee.

Unfortunately most people don't like buying opened products, and most products now days come in a blister pack (hard plastic moulding) and most people are fairly intelligent enough to realise when an item has been re-sold/returned, especially when a lot of companies will then re-box it in an unmarked brown box.

Some retailers will try to pull the wool over your eyes and ship a product out as new even though it's been opened and returned, but this isn't ethical, so charging a re-stock fee in this situation is okay. If, however, the unit is faulty then it should be returned and replaced by the retailer at no cost to you.
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Skippy
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Joined: 24/06/2003 00:22:12
Posts: 2946
Location: Escaped to the Antipodies! 36.83°S 174.75°E

PostPosted: Tue Apr 19, 2005 9:00 am    Post subject: Reply with quote

Metsy wrote:
I still do not know what the problem was. Perhaps the hardware was faulty. Perhaps the problem is with the driver software. The HP iPAQ 2215 is specifically listed in the advertising as being compatible.


This may be slightly tricky. If you brought the goods in the UK from a UK based company then the "Sale of Goods act" applies. If you brought it from some other country then the law in that country will apply. I will assume that you brought it in the UK.

If the device was faulty then you are entitled to a refund/replacement and no restocking fee. NOTHING that a retailer puts in their terms and conditions can affect your statutory rights under the Sale of Goods act.

If you brought a device which you returned because you didn't want it or you brought the incorrect item then you can return it in "as new" condition without penalty within 7 days under the "Distance Selling Regulations".


If you returned a device after 7 days then it comes down to the question of if the device was faulty or not. Since the device is now returned, this would be difficult to prove one way or another.

Can you tell us the model of GPS you were using with your iPaq, maybe someone here has that combination of devices and can tell you if they should work straight away without problems or if there were driver issues which were difficult to resolve.

I would suggest that you contact the company telling them that you made a reasonable effort to get the GPS to work with the iPaq and consider that the original unit was faulty and you want a full refund.

If that fails then:

Name them here
Dispute the transaction with your credit card company (if you paid by card)
Take up the case with Trading Standards (the UK consumers institute)

Name them here anyway - they might be reading this and decide to make a good will settlement.
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