Alot depends on the kind of items you sell and how complex the item is to use and/or install. But offering to pay for all returns is a bad decision since this is costing more money than you might be aware of.
In our business model we could not afford to pay for return shipping costs, we instead try to resolve the matter amicably before a dispute is opened since through the PAYPAL DISPUTE process if we lose the claim then PAYPAL refunds their entire fees plus shipping costs as you know.
So, when we do get a claim, our goal is to settle with the buyer by first offering a replacement product and if that does not work then we offer an even better product. If buyer is still reluctant then we sweeten the deal with some sort of freebie from our inventory.
We find this process works very well for us however there is always exceptions where the buyer simply refuses all offers. In these cases, we stick by our DOA/RETURN policy terms and do not waiver from it.
We further protect ourselves by using security stickers when appropriate and we also maintain a photo database of all items we ship that show the condition of the item BEFORE it is shipped.
The security stickers and photographs come in handy to fight against bogus claims and/or when a buyer breaks an item and files a false claim.
Todate we have help eBay suspend 10 accounts due to false claims.
Also, alot of buyers are NOT AWARE that eBay does not tolerate false claims and will suspend them indefinatey if it is proven that they knowingly file a false claim.
WE MAKE IT A POINT TO MENTION THIS UPFRONT WHEN WE FIRST RESPOND TO A CLAIM. This alone is usually enough to scare away bogus claims.
Anyhow, hope I was able to offer some useful information for you.
Good Luck,
TIM @ FTL
