Question
I've gotten a couple queries if I would offer a layaway payment option but I hesitate to take the risk. On the other hand, it seems like a nice idea, especially if it means not relisting again and again.
I would only consider it for particular items over, say $150, and items that are NOT super-hot.
What's your experience?
As a bidder, are you more likely to bid on items with this option?
As a seller, do you have more sales, more bids, higher bids, happy endings?
Answer
Isn't using a credit card a 'lay away' option, except that the seller receives their $$$ up front, the bidder/buyer get's their merchandise 'up front', and the payments are spread out over time.
Possible problems.
What if they don't pay 'on time'?
What if they don't 'finish' paying?
What if the item is damaged (broken/aged/goes missing/etc.) during the payment term?
How much extra work (for you) is it going to take to keep track of their payments and when its due?
What if they 'string you along' for a few months, then decide they don't want it/found it elsewhere, and want their $$$ back?
What if they die during the payment period? Who keeps the funds? How do you know WHO the rightful "new owner" of the $$ is?
Answer
Doesn't paypal have something like this that THEY administer? And you get paid right away?
Answer
I've offered people layaways around the holidays for years and never had a problem. LOL.....having so many layaways that I couldn't keep track would be a sweet deal indeed!
I am always clear as to when I expect the payments to be made and with the fact that the payments are non-refundable should they change their mind or fail to be able to complete the transaction. I always accept only money orders as payment so there is no question of charge back. I don't charge a layaway fee and in turn don't have to pay credit card fees.
It has been a good thing for me.
Dee
Answer
kathleen and goodworks1:
No PP accepted here. If someone wants something, they can pay with a cc thru BidPay. So far, no there's response to my question of why they wouldn't/couldn't do so.
Granted, they'd have to pay a BidPay fee. But as far as I am concerned I have the greater risk. I would have to take the (unique) item off the market for 30 days, get paid slower, and be forced to deal with an angry buyer if they don't pay on time. Sounds like a headache.
Glyph:
How long is your layaway time-frame? How does it affect you/your inventory/ ie: risk, if someones never pays up?
I sell unique items: vintage/antique decor, so I think it's a little different for me. I have a very small inventory, and rarely have over 5-7 items up for auction at a time. If I were offering the same things/or a had a niche inventory, there would be less risk. Good old stuff is hard to come by, and lately, higher priced decor is becoming hard to sell...plus with a small inventory...fast sell/quick turnover is what I aim for.
Answer
I have a lay-away payment plan for repeat customers that have buy at least $150 in the last three months and for orders over $200. It has worked very well. These are customers that didn't want to have a cc balance. I don't offer it for new customers and only through my store, not Ebay.
Angie
Answer
Insist on 1/3 immediately, with 1/3 in 2 weeks and balance in addntl 2 weeks. Make sure the buyer understands that failure to meet your timetable means s/he forfeits all money paid. AND that under no circumstances will you consider a return/refund. Your risk would not be significant.
(That's what I would do, anyway )
Answer
Platinum sorry for the delay in replying. Like most things with ebay it depends on what you sell. I hand craft my inventory so it is not an issue for me as it is with you. They only time I run into something like that is when I am near the end of a particular fabric.
I am generally very flexible. Right now I am working with a woman who need five weeks to pay $260 and wanted to make it in two payments. I usually run a pre-Christmas layaway where I take orders in October and they have until Thanksgiving to pay. I'll take it in quarters, thirds, or halfs but usually don't let it stretch over six weeks total. Occasionally eight week quarters if the customer is someone that I know and has purchased before. I figure every two weeks is a pay period. It depends upon the orignal price of the item as well. Most of the year, except right before the holidays I don't have a set in stone policy and do it as a favor that way I can guage my own needs and try to make it mess with that of my customer and it has worked well for me.
I do have to say I'd be a lot more reluctant to do such a thing in your shoes. For instance, if having 50% of the money that you are selling an item for allows you to find a new item for sale so that you can keep moving then that would be my minimum or first payment. Then you could require either one or two additional payments.
If holding the item for them impacts you negatively then I'd tell them so and let them know you just can't afford to have the item on hold. Maybe they can save or come up with the cash before it sells. Just be matter of fact but express you regret at not being able to hold the item. We all have to pay our bills.
Good luck.
Dee
Answer
I appreciate your input Angie, Cowprincess, and Glyphia. Since the member hasn't replied as to how long they would need to pay-up, nor why they could'nt use BidPay... I have decided to shine it on.
As Glyphia mentions, I think it's a really good idea to "be flexible" and I would tend to go with my gut on this type of stuff anyways. And since the member didn't respond to my queries, the gut sez "don't bother"...
Answer
I agree if they don't have time to answer your emails they may not have time to complete the layaway.
Dee