Think twice before ordering from Panda Motorworks (cancellation fees on backorders)

[rtaylor]

Panda Motorworks has a policy of charging a 7% cancellation fee on backordered items.

While a reasonable person might assume that this policy applies only to returns, they are applying it to backordered items that are not yet in production and have no delivery date.

Fine print in final checkout (one section of long document talking about returns):

I filed a dispute with my credit card company and will let them decide whether they will let Panda charge me $284 for something they never shipped and isn't in production yet.


What do you think? Should I be outraged at this cancellation fee or do you agree with Panda?

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[TXBoy79]

How did you come across the fee info? If you already had the information then sounds like you lose. If it's indeed "secret" as you stated then they need to revamp the way they conduct business and refund your $$.

Just my opinion.

 

[PWillette]

The way I read the disclaimer it applies to "returned" items...how can they charge a fee for something that isn't returnable because it was never received...or built for that matter?

 

[mcinfantry]

Credit card companies have a max amount of order fulfillment time, as well

 

[sgraing1]

Based on the statements in your post.That is an absolute BS policy. I'll keep a note of this company when it comes time for my Bronco parts needs.

 

[Rex21c]

Yea, this is not a return of a product as in your pictures. You should be able to push back on them that their written policy is for returned items, which you have not returned anything as you never received it. It would cost you more than your 7% to take them to small claims court, but unless there's more that's not being posted, it's pretty clear that the 7% applies to returns even though it's under a Refund heading.

There's also negative reviews to consider against the company. I know of a forum that's pretty good at doing those.

In my opinion they never should have billed you for something that has not shipped.

 

[goalie]

that sounds like a refund on delivered goods, they shouldnt have even charged you yet for a pre-ordered item.

 

[UtahBrandon]

I haven't been in direct management of Ecommerce in a number of years, however, in the past, the vendor wasn't supposed to charge your card until the item is actually shipped. Pre-authorization is fine, but not charged.
If it's not charged, then there's no service fee. Hopefully it's just a misunderstanding. And, by the way, the fact that you have a screenshot indicates that it's not really a "secret policy".

 

[IfIHMadeA2021Scout]

Panda Motorworks has a secret policy of charging a 7% cancellation fee on backordered items.

While a reasonable person might assume that this policy applies to returns, they are applying it to backordered items that are not yet in production and have no delivery date.

I filed a dispute with my credit card company and will let them decide whether they will let Panda charge me $284 for something they never shipped and isn't in production yet.


What do you think? Should I be outraged at this cancellation fee or do you agree with Panda?

Outrage is warranted.

With the way things are going today I think I'll start an on-line company that has cool stuff, take orders, never deliver anything, and take 7% cut of all the orders when canceled. That should be a pretty nice return for little effort running an automated system with no inventory.

Think about it. If they can't fulfil an order for any reason, even if it's out of their control, that is all they are doing.

 

[rtaylor]

And, by the way, the fact that you have a screenshot indicates that it's not really a "secret policy".

The "secret" (maybe poor choice of words) is that they are applying it to cancellations and not only returns.

Also, it is buried in the fine print (multiple documents with multiple pages) in final checkout.

 

[Rip]

@rtaylor the 7% charge is not for returning the goods, it is the fee that the payment provider charges them to process both your primary payment and the refund. Some processors only charge once for this and some hit you both times to process it. They will have to pay this fee so it appears they pass it on to a customer that cancels.

@UtahBrandon is correct that the right way to do this is NOT to charge a customer in advance for items that aren’t available. This resolves the problem.

I hope the insight helps but I hate you are in the middle of that. That is awful.

 

[Trueblue2296]

I wonder what @Mitch Panda Motorworks can do to help if anything. Seems wrong to charge for things you can't provide and then keep some of the money when you can't provide it.

 

[chris@pandamotorworks]

If I recall what this order is about it would be a Pre-Order Icon Suspension System.

The order came through the day Icon released the products. We immediately reached out to the customer letting them know this is a Pre-Order and the wait would be aprox 3months.

We would only process the order if he was okay with the wait. The customer agreed to the wait and understood this was a new product and would take some time.

We are not hiding this FEE at all. In fact we give you multiple chances to read about it. The home page, before placing an order while in your car and during checkout. The fact is we have placed this order with his name on it and taken the hit on the fees after informing the customer of the wait and him agreeing.

If he would have not been okay with that wait we would have canceled same day and had not charged the fee!


We are a small shop doing everything we can to help our customers but we should not be penalized from the banks because a customer changed their mind on a product they agreed to wait on.

 

[GToddC5]

Doh! Seems you left out some important details!

 

[GaryB2220]

"once your return is received". You have nothing to return, so this passage should not apply.

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