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Managing/Tracking Refunds

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jcwarriorwrc
jcwarriorwrc
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jcwarriorwrc
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Hello Warriors!

I've always wondered how product creators managed refunds/returns using payment processors/hosts like gumroad, stripe, e-junkie, jvzoo, etc., when it involves money-back guarantees.

For instance, if you create an ebook that has a 30-day money back guarantee, do you not touch that sale/revenue just in case that customer asks for a refund later on?

I know Clickbank manages this aspect of the sale; but I don't know how it's accounted for with the aforementioned services, since it seems you're in charge of all the customer service.

Thanks everyone!
#managing or tracking #refunds
  • Profile picture of the author Sid Hale
    Sid Hale
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    Originally Posted by jcwarriorwrc View Post

    I've always wondered how product creators managed refunds/returns using payment processors/hosts like gumroad, stripe, e-junkie, jvzoo, etc., when it involves money-back guarantees.

    For instance, if you create an ebook that has a 30-day money back guarantee, do you not touch that sale/revenue just in case that customer asks for a refund later on?
    Kind of seems silly to let the earning power of those funds sit idle while you wait to see if a buyer is going to refund or not... but it's just as silly not to plan for some percentage of refund activity, as well.

    As long as you maintain enough reserves to fund those refunds when they do occur, there's no problem. It's only if you don't recognize that potential liability and set aside some percentage of revenue to cover those costs that you will have any major problem.

    This is true regardless of what payment processor you use, and it doesn't matter whether you're using one of the affiliate networks to interface to your payment processor, or if you are using a self-hosted sales/affiliate management system.

    I know Clickbank manages this aspect of the sale; but I don't know how it's accounted for with the aforementioned services, since it seems you're in charge of all the customer service.
    ClickBank "manages" this by debiting your account balance and withholding revenue from future sales to offset any refunds encountered when you don't have a sufficient account balance to cover those refunds.
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  • Profile picture of the author gjabiz
    gjabiz
    gjabiz
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    I put the first 5 sales back, and if I ever have to refund 5 people (has not yet happened)...then I'm going back to the product and make it better.

    Over the years, I've had many products with zero refunds, if you start getting them, then you must look at:

    Your COPY, what did you "promise" them
    Your market, did you select a serial refunder market
    Your product, is it NOT what you said it was.

    More than a 5% refund rate should be unacceptable to "most" marketers, however, in the IM marketplace, 20% or more is not uncommon.

    gjabiz

    Originally Posted by jcwarriorwrc View Post

    Hello Warriors!

    I've always wondered how product creators managed refunds/returns using payment processors/hosts like gumroad, stripe, e-junkie, jvzoo, etc., when it involves money-back guarantees.

    For instance, if you create an ebook that has a 30-day money back guarantee, do you not touch that sale/revenue just in case that customer asks for a refund later on?

    I know Clickbank manages this aspect of the sale; but I don't know how it's accounted for with the aforementioned services, since it seems you're in charge of all the customer service.

    Thanks everyone!

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