LuLaRoe Suddenly Changed Its Return Policy, And Vendors Are Furious
We probably all know at least one woman selling LuLaRoe leggings on Facebook. The multi-level-marketing company has thousands of sellers, and I’m pretty sure I went to middle school with every single one of them, if the amount of leggings on my Facebook feed are anything to go by. Now those sellers are furious, because LuLaRoe just announced that it was changing its return policy. Some sellers say they could be out thousands of dollars.
LuLaRoe sellers buy products wholesale
According to Buzzfeed, LuLaRoe sellers buy the goods wholesale for between $8.50 and $31. To sign up to sell LuLaRoe, a person must buy a starter package. Starter packages cost between $4,812 and $6,784. In April, LuLaRoe reportedly told its sellers that if they decided to go out of business or stop selling LuLaRoe, they could return all unsold merchandise for a 100-percent refund. The company even covered shipping the items back to them.
Wednesday, however, the company announced it would only reimburse 90 percent of the wholesale price of the goods. Now, only goods in their original packaging can be returned. The company now only refunds products purchased directly from the company, not purchased or traded from another LuLaRoe seller. It also only accepts returns on things purchased within the last year, and limited-edition and discontinued items can’t be returned. The company also said it would no longer cover shipping, which is a big concern for people who have hundreds of pounds of leggings to send back.
LuLaRoe sellers are furious
LuLaRoe sellers are furious at the news. Some of them say they could be out thousands of dollars. Several who say they started “going out of business” procedures before the new announcement are worried they will no longer get the refunds they were expecting.
Some of the vendors are accusing the company of dragging its feet when sending out the return shipping labels, then claiming it’s too late for the 100-percent buyback deal.
Multi-level marketing companies often appeal to stay-at-home mothers, military wives, and women in rural areas. They offer the promise of a successful, fulfilling career that fits a person’s unique schedules and abilities. It sounds good. But research shows that 99 percent of people selling for MLM companies actually lose money.
What do you think of LuLaRoe’s sudden announcement? Let us know in the comments.
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