
What do gym memberships and the price of house paint have to do with the fees eBay and other online marketplaces charge sellers? In light of recent news stories, it could mean marketplaces should check their pricing policies.
First up: surcharges. According to a
news story on Cleveland.com, a consumer filed a class action lawsuit against Sherwin-Williams claiming it tacked on a 4% surcharge at the checkout line for supply-chain issues that have caused prices for goods to skyrocket in recent years.
The lawsuit alleges the surcharge amounts to deceptive pricing for shoppers and accuses Sherwin-Williams of using the surcharge to make it appear prices remain low.
eBay instituted a surcharge on sellers in 2018 (also known as penalty fees) - "You may be charged final value fees if you violate our policy of buying or selling outside of eBay, or we may apply additional final value fees if you are not meeting our performance expectations."
eBay explains how some of those fees work as follows:
"If your account doesn't meet our minimum seller performance standards for the US in the evaluation on the 20th of the month, you'll be charged an additional 6% on the final value fees applicable to sales in the following calendar month.
"If your rate of 'Item not as described' return requests is evaluated in your service metrics as Very High in the evaluation on the 20th of the month in one or more categories, you will be charged an additional 5% on the final value fees for sales in those categories in the following calendar month."
The eBay penalty fees against sellers are different from the reported Sherwin-Williams checkout surcharge, but sellers who suddenly find themselves paying an extra 5 or 6 percent more in commission fees to eBay may feel similarly outraged by the policy when it hits them. It's a practice that has never been challenged legally, as far as we know.
Another news story may have more direct implications for online marketplaces: the
FTC is proposing a rule that would require businesses to make it easy to cancel subscriptions.
If the FTC implements the new rule, it appears marketplaces and service providers would be required to allow sellers to cancel their subscriptions at any time - for example, sellers with an annual eBay Store subscription who find themselves locked in.
In addition, services would have to send a reminder to customers every year:
"The proposed rule would require sellers to provide an annual reminder to consumers enrolled in negative option programs involving anything other than physical goods, before they are automatically renewed."
Naturally sellers themselves will have to adhere to the new rules if the FTC implements them. Would they impact you, and are there other questionable or troublesome pricing practices you encounter when selling online?