Tradesmart Inc. is a fairly broad marketplace, which, in addition to low prices, also provides customers with a unique policy of returning money for the goods. However, this system is far from ideal due to the fact that customers can return the goods essentially regardless of their condition and receive a full refund. According to Huang and Feng (2020), “From the customer’s perspective, the policy of MBG is one of the most eagerly awaited moves. Consumers are attracted by the full refund when unsatisfactory products are returned” (p. 3). A refund policy itself is necessary, as it inspires confidence in customers, which also increases their number.
From the marketing side of this issue, this policy is justified, but not from the one offered by Tradesmart Inc. Even though, according to the company’s motto, customer satisfaction is paramount, their money-back policy can easily be abused.
Despite such an attractive loophole in the company’s policy for customers, there have not been massive cases of refunds for goods yet. Even with a high risk of such situations, the company will not lose anything, since it is not Tradesmart Inc. that reimburses the money for the goods, but the manufacturers. In addition to this, all customer complaints about the product are also addressed to manufacturers, which affects their reputation, although most “defective” goods are actually working. I believe that this whole situation is ethical in relation to customers, but not ethical in relation to manufacturing companies.
A Possible Solution to the Problem
To achieve a compromise for all, I would insist on a review of the terms of cooperation. If Tradesmart Inc. doesn’t want to change its policy regarding the refunds, they must first send the goods to the manufacturer’s service department in order to conduct an examination there. In the event that the goods are actually defective and the warranty has not expired, the manufacturer will reimburse the cost or replace it with a new one.
If nothing is found, Tradesmart Inc. should reimburse; thus, all the benefits of using Tradesmart Inc. are left to customers, and manufacturers no longer receive complaints about serviceable goods. If Tradesmart Inc. would not agree to such conditions, then I would simply refuse to cooperate with them. In case nothing changes in the future, then over time, relations between companies can greatly deteriorate, and as a result, manufacturers will not be interested in further cooperation, which will only bring losses.
Reference
Huang, Z., & Feng, T. (2020). Money-back guarantee and pricing decision with retailer’s store brand. Journal of Retailing and Consumer Services, 52, 1-12.