How do you feel about a down payment for large orders?

[Former_Member]

I've never had a customer cancel before, but I was wondering if I should make a shop policy that in case of a cancellation for an order of $100+, if I should keep a certain percentage of the payment as a non-refundable down-payment, that is if the cancellation has been made after 48 hours. I kind of think it's a good idea, for my shop, orders over $100 usually take up a lot of my resources and time since a lot of it is made to order.

Also, what percentage should I keep? I thought 25% was good, it would cover costs and pay me as well.

http://www.lmcstationery.blogspot.com
http://www.facebook.com/littlemisscardsonline

[Former_Member]

Mandatory!

[Former_Member]

Thank you, anyone else have advice or opinions?

[Former_Member]

The only time I require a deposit on any order is if its a custom order or a special order item.

For anything else, if the order hasn't shipped I simply honour the cancellation request and refund the full amount.

[Former_Member]

That makes sense, I guess if they cancel and it's not something I already sell in my shop I can just put it aside for someone else later.

[BrushStrokeOrnaments]

If I create a special order for someone (and it's personalized or cannot be sold to anyone else) there IS no such thing as "cancelation". You buy, I make, you get the item. I did have this happen one time. A customer ordered about $100 of ornaments...and, being nice, I decided to make them before payment. Well, all of a sudden (due to some unexpected problems), she was not able to purchase. I still have those ornaments! Lesson learned.

I think your idea is fine. If you can resell the item (s), keeping a certain % for your time and trouble is perfectly acceptable.

[kidsstore]

Many years ago I had a custom bridal business where I also sold invitations and personalized accessories. I dealt with 5 different invitation companies and they all had the same policy. Once they received an order, it was final. They did not issue refunds. If they made a mistake, they redid the items for free but did not refund the payment. If the customer or I made the mistake, then we had to pay to have the problem fixed. You better believe, I always double checked to make sure I wrote down exactly what the customer had approved. I also had the customer check everything 3 times before they left.

[heartsabustin]

I do custom bridesmaid clutches, and one of my requirements is that they pay 100% up front, and once I've started the project, if they cancel, they only get part of the money back. My materials fees stay with me.

[Former_Member]

I have my customers pay 50% in advance for all special orders. Special orders are not refundable, but I do make sure that they like what they are getting before I ship it. So far I haven't had any problems (crossing my fingers). I would allow customers to cancel a listed order up until the time that it ships and not charge them anything. FYI: My experience with special orders is not through Etsy but through local buyers.

[LeedsRadio]

I don't have a lot of experience on Etsy but much off. I give a full refund on anything stocked up to the point that it is packed or already shipped, after that 15% restock. And once shipped, shipping is not refunded and return shipping is paid by customer.

For special orders where I have to bring material in that I don't normally use or custom orders, once work has started no refunds.

[mylittlemookie]

I don't do down payments, custom orders are paid for in full. Before I begin I workout all the details with the customer. I also do. It do returns on custom orders, I have never had to :)

[Former_Member]

I haven't had a cancelation here on etsy. I've done several special orders. Usually, where the customer send me their "precious stone" and I complete a personal healing pendant for them.

Generally, all the specifics have been ironed out prior to sending.
I currently have someone building an item for me for my daughter. We worked out all the specifics prior to my sending payment. I have no reason to not believe it will all be what I wanted.

I felt confident in the discussion and the results of the design.

https://www.etsy.com/transaction/132940838

It will be finished with pmc and polished. It represents my Grandson's name - Domingo Rey.......Sunday King.....sterling silver crown.

[Former_Member]

Sure, call it a restocking charge or I used to charge a down payment for good faith with my graphic design, so maybe you could charge a down payment to cover your costs. Tell them once you receive the down payment, work begins immediately. That way you're not out any money if they do cancel.

[Former_Member]

You should do what works best for your shop! Getting a deposit and keeping a portion due to cancellations sounds reasonable to me because you could absolutely spend that time loss working on other projects and you should be paid! Even when we have set policies there is always the exception!!

[SageNThymeDesigns]

If I've already started work on a custom order then there is no refund available. I can't imagine people even asking. A deposit to start work on a large custom order is something that some shops require.

I only offer refunds if there was an error on my part, since most things in my shop are custom and made to order, refunds just aren't feasible.

I'd recommend looking at the Policies section for other shops that sell similar items. Many people who sell supplies or other ready-made items may not have the same needs/concerns as a shop like yours.

[Former_Member]

Thanks guys, that was very helpful