Preventing Chargebacks for Special Order Merchandise
The beauty of unique merchandise, especially things created and customized to an individual’s unique specifications, can be hampered greatly by the possibility of special order chargebacks.
If you fall into the customizable merchandise category, it would behoove you to learn some of these chargeback prevention tools.
Understanding the Problem
Anytime a merchant deviates from the norm by customizing a product to a particular customer’s preferences, there is a risk of chargebacks. Maybe the thread chosen for the stitching appears more yellow than it did on the computer screen. Maybe there is a smudge on the logo screen printing.
Whatever the reason, a disgruntled customer can easily file a chargeback. And each chargeback brings you one step closer to a placement on the MATCH List (an action taken by the bank that will prevent your business from accepting credit card transactions).
In many chargeback situations, the customer doesn't return the merchandise in question. Even if the made-to-order merchandise is returned, the merchant is still at a disadvantage.
By nature, custom-made goods are personalized and tailored to the individual consumer’s desire. They include details (colors, words, images, etc) that hold a special meaning to the purchaser. However, these individual preferences are rarely shared by the general population. Therefore, these one-of-a-kind items are nearly impossible to resell.
Not only are a merchant's profits tied up in chargeback fees, the business will lose even more because there is no chance to resell the original item.
Best Ways to Prevent Chargebacks for Special Order Merchandise
First, a merchant must admit that not all revenue loss is caused by special order chargebacks. Chargebacks can happen for a myriad of reasons. It's advantageous for merchants to take a careful look at the business's policies and procedures to uncover the triggers for all chargebacks, not just those caused by custom-order clients.
Start by downloading our eBook that outlines general chargeback prevention tips.
While no chargeback prevention plan is guaranteed to eliminate transaction disputes in their entirety, there are things merchants can do to prevent special order chargebacks:
- Perhaps the most helpful chargeback prevention tool is open and honest communication. Carefully and accurately explain to the customers exactly what they are getting.
- Listen carefully when customers explain their expectations. Compile a list of what you think the customer wants. Then, have the customer sign off on all specifications and descriptions.
- Be in constant contact with the customer throughout the production process. Send pictures, ask for feedback, and get approval every step of the way.
- When possible, use email for communication. This ensures written documentation of all your communications. If something important was discussed over the phone, follow up with an email to document the changes.
- Make sure you have transparent and explicit policies. Have the customer sign off on these policies before work begins.
- Conduct a follow-up survey to judge the customer’s satisfaction. Use these tips and suggestions during your next custom order.
Most importantly, it might be time to acknowledge the fact that professional help is a necessity. Any merchant who suffers from a excessive amount of chargebacks, whether the business provides personalized products or not, should consider professional help. In-house chargeback management techniques are only capable of preventing a small portion of transaction disputes.
Stay Positive
It will be difficult to please some customers, no matter how hard you try. However, with exceptional customer service, attention to detail, and professional guidance, you stand a much better chance of preventing chargebacks for special orders.
If your business specializes in custom merchandise, contact us today. We can help you craft business policies and customer service norms that reduce the risk of chargebacks.
