wsmeyer - 6:05 pm on Jul 18, 2006 (gmt 0)

I think you need to evaluate what your niche is in your market. If the focus of your site is convenience or customer service I think a no-hassle return policy is expected. If your product is something that is sought out on the internet and your niche is selling it at the lowest price, I think a restocking fee / exchange only policy actually conveys to the customer that you operate on extremely thin margin - and this is good.

I don't think that many people would actually go through the hassle of sending the item back just because they were cheap. But the ones you do get back, would it be feasible to setup an eBay store just to sell your returns? And would you be able to recoup your costs?

William.