Why do the fees and costs differ between EXCHANGES  and REFUNDS?

Why do the fees and costs differ between EXCHANGES and REFUNDS?

Published by Jay French on 11th Nov 2020

CCW Breakaways EXCHANGE and REFUND policies are posted at:

https://ccwbreakaways.com/exchange-return-procedure/

Occasionally, we get asked for a more complete explanation of the costs. So we're providing that here.

Returns for a clothing company are expensive to process and they have become a significant expense. The option is to pass that expense on to our whole audience . . . which drives the overall cost up for everyone . . . or to pass that expense on to just the individuals desiring the refund. We believe it is fairer to pass on the expense to just those needing that service. We have the same philosophy for our accessories. Not everyone wants every item. . . so we offer those products a la carte.

Here are the three or four deductions that are assessed on REFUND orders:

  1. CCW Breakaways will not sell “used clothing,” so each item returned goes through an incoming inspection process where the pants are unfolded, sticky-lint cleaned, and repackaged. This “restocking” fee returns the items to a factory new condition. We recoup this labor cost on returns by charging $5.00 per pant.
  2. Postage is outrageously expensive. It sometimes costs more to ship the product, than the cost of the product itself. In mid-2019, we decided to discount our customer’s shipping for pants to $6.99 . . . but our actual Priority Mail Medium Flat Rate shipping fee is now $13.60 . . . which is a $6.61 loss for us. We recoup this loss on returns by charging $6.00 per shipment.
  3. We also deduct any coupon codes from a sales order. Because the customer experienced an immediate discount at order placement, they actually never incurred an expense. So we recoup that discount.
  4. The fees we pay to process your credit card transaction is about 3% of the total. That is a total loss for us and we do not recoup that fee because it is a variable expense. We just absorb that loss.

The restocking fees mentioned above are always waived on EXCHANGED orders. The costs associated with running a business in today’s world are real and burdensome so we try to breakdown our financial transactions in the fairest manner possible.

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