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Do you sell online and use PayPal? Get ready to bend over!

Gaslight

Prominent Member
The greed is unimaginable!

PayPal Just Made Returns and Refunds More Expensive

PayPal will soon keep their commission percentage when a sale is cancelled. This can be anything from a cancel before dispatch, a return, etc.

So if you sell a £200 item, and the buyer sends you a message minutes later to say they bought the wrong one, and want to cancel, PayPal will keep their £7 once refunded.

For business sellers who get returns, not only do you lose the outgoing postage, now you will lose the paypal transaction fee as well. So selling a £20 item, if returned, could cost you £6-7 (2nd class signed for postage), and if the buyer claims an IND, you will pay for the return, so you could lose essentially £10.

Small business sellers such as myself are going to get hurt even more, which I didn't think was possible after eBays Managed Returns fiasco.
 

nheather

Distinguished Member
Out of interest what happens with credit cards. You buy something for £200 using your credit card, then return it for refund. Does the Credit Card company keep any of the fees (a) if the refund is done very quickly (b) after a few days (c) after weeks or months.

As it sounds, I think this will be very tough for small online businesses. Law says that you can return an items for whatever reason within 14 days. So say the item was £200 with free delivery and it cost the seller £4 to send it to you. The seller would also pay £7 in PayPal fees. So after the refund the seller would be down £11.

Cheers,

Nigel
 

MrFraggle

Distinguished Member
Spot on.

Haven't used PayPal in yonks.

I've discovered something called money which is actually made of paper?

Colourful notes and everything!
Is it something like this?
JylzvqO.jpg
 

Gaslight

Prominent Member
I was discussing this today with other Business sellers . currently this new policy roll out is for the US only, however as we have seen with pretty much every other PayPal policy, it only takes a few months for the UK to follow suit.

So we have a little longer before being bent over and shafted without even the tiniest amount of KY. Still criminal though.

I wonder if eBay will ever get prosecuted for unfair trading -i.e the rule that you HAVE to accept PayPAl as a payment method on eBay, even for collection only items. (and yet PayPal have in their terms and conditions not to accept PayPal for collected items)
 

Gaslight

Prominent Member
Back to paying by credit card.
That is still an option on ebay? Isn't it??

yes, PayPal process credit card payments on eBay and take their commission from the seller. So the seller will still lose the PayPal commission.

eBay have their own payment processor starting soon called Ayden, but I imagine they will insure it rapes the seller for as much as they can though, and then some.
 

Tuono r

Established Member
I must admit I'm using Gumtree a bit more lately, but it is limited.
Also I tend to try & go direct to supplier & pay by CC.
That way seller gets his money without paying a commission.
 

Gaslight

Prominent Member
I must admit I'm using Gumtree a bit more lately, but it is limited.
Also I tend to try & go direct to supplier & pay by CC.
That way seller gets his money without paying a commission.

Card payments do have a commission but its often around 1-2%. I dont really have an issue with paying PP their 3.4%, as its a pretty good service, but its when they do things like this that it shows the real ugly side of a no-competition industry.
 

jan2897

Established Member
I must admit I'm using Gumtree a bit more lately, but it is limited.
Also I tend to try & go direct to supplier & pay by CC.
That way seller gets his money without paying a commission.
Due to the exorbitant charges/commission made by Ebay and Paypal I try to sell as much as possible on Gumtree. At least it's free and you get to keep whatever you sell an item for without any exorbitant fees being levied.
 
I've totally given up with selling on eBay altogether and only use it for buying stuff as its so biased towards the buyer when anything goes wrong.

It seems to attract a few idiots and I ended up getting in two disputes within a few months both of which I eventually won. However it took weeks of arguing with eBay/Paypal to keep my money when I'd done absolutely nothing wrong on both transactions in the first place.
 

Ensor

Established Member
I wonder if eBay will ever get prosecuted for unfair trading -i.e the rule that you HAVE to accept PayPAl as a payment method on eBay, even for collection only items.
Or that we have to accept returns from customers, for any spurious reason, of items that aren't faulty but have been used by said customer, when the law clearly states that items cannot be returned once used unless faulty? :mad:
 

Gaslight

Prominent Member
Or that we have to accept returns from customers, for any spurious reason, of items that aren't faulty but have been used by said customer, when the law clearly states that items cannot be returned once used unless faulty? :mad:

Aint that the truth. the joys of eBay, have you had an empty box return yet that eBay force you refund with no real ability to appeal?
 

Ensor

Established Member
Incorrect, its 14 days. They have 14 days to tell you they are returning and another 14 days to return it.
Interesting, as far as I've been aware until now it was 30 days under the Distance Selling Regulations. And if I recall correctly, it was eBay's own "help" articles which misinformed me. :thumbsdow

I'll be printing off that info you linked to for future reference.

Strangely enough though, the BBC also state 30 days on a "Watchdog" page about buying online.
 

Ensor

Established Member
...had an empty box return yet that eBay force you refund with no real ability to appeal?
Luckily I've avoided that one thus far, though I have had numerous instances of unwanted items being returned incomplete making them impossible to sell on as used.

As always with eBay, no way to appeal or lodge any meaningful complaint.
 

Gaslight

Prominent Member
Interesting, as far as I've been aware until now it was 30 days under the Distance Selling Regulations. And if I recall correctly, it was eBay's own "help" articles which misinformed me. :thumbsdow

I'll be printing off that info you linked to for future reference.

Strangely enough though, the BBC also state 30 days on a "Watchdog" page about buying online.

Its usual eBay jargon of 'Market trends' to offer a 30 day returns. But its 14 day by law, however eBay now force sellers in certain categories like Vehicle Parts into offering 30 days returns. Either offer it, or you can't list.

You can still offer 14 days in some categories as a business seller.
 

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