Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sat July 8 2017 22:38:46

eBay Furtively Changes Payments Policy

By: Ina Steiner

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eBay is rolling out a new payments requirement, and not only are some sellers upset - some buyers aren't happy about the new policy either. Contributing to the controversy is the fact users say eBay has not notified them about the change.

The issue of Immediate Payment Required (IPR) came up during eBay's weekly chat session on Wednesday. A seller said he had been "pulled back into an old Beta test" that forced him to require immediate payment on all Buy It Now (BIN) listings, which forced shoppers to use the checkout cart to request a total for combined items.

An eBay moderator said it wasn't a test - it was a new change eBay was rolling out:

"We tested this a ways back but have recently made changes to help in our efforts of reducing Unpaid Item cases. There isn't an option to opt out of this feature but I encourage you to have your buyers use the cart and ensure your combined shipping rules are set up so that it's automatically being combined for your buyer."

The moderator replied to follow-up comments:

"Due to feedback from our sellers, we want to limit the number of non-paying buyers and in order to do that, we're pushing them through the checkout flow before showing the item as purchased/sold. We understand that it can impact some businesses more than others and we've shared that feedback with the relevant team."

One seller questioned eBay's premise that sellers had requested the change, reminding the moderator that sellers already had had the option of requiring immediate payment. "Ummmmm ...... that function is already there for the SELLER to choose, not to have eBay choose it for them."

You can find the new policy language here:

"Immediate payment is automatically required on items priced below $1000, that have a specified shipping cost, and where PayPal is the only payment method offered."

In a separate thread, when sellers wondered if the change was a bug, an eBay moderator confirmed the change was intentional. And when a user pointed to a seller whose listings were exempt, the moderator confirmed that not all sellers were impacted the same way:

"We are still in the process of rolling this out to every seller. While I do not have specific timeframes for when this will be expected to be completed, more and more sellers will be moved over to the new process as time goes on until 100% are included."

It appears to be a poorly communicated change from eBay applied in an inconsistent manner. But will it benefit sellers by reducing the incidents of deadbeat buyers?

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by: Scotty This user has validated their user name.

Tue Jul 11 12:42:39 2017

In regards to the revenue part of this discussion, I would be interested in a break-out of their revenue...i.e. how much from recurring fees (excluding listing and final value fees....all the small ancillary fees) as I have a feeling they represent a substantial portion of ebay revenue.  Take these out of the mix and it would be interesting to see their true revenue from listings and sales.  Might or might not be in their filings...if they are, guarantee they are well hidden or combined.  This is what the so-called analysts need to focus on as this is where the alleged ''growth'' is ocuring...not from increased sales, etc., but from increased fees such as those discussed.  Almost like when the gov't enacts new small taxes...they try to make them so small no one notices much, but cumulatively they add up to substantial $$$.

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by: mickeyfinn This user has validated their user name.

Fri Jul 14 00:10:40 2017

I can't say I've seen or heard of many instances where non-payers is a problem.  Certainly nothing that would warrant an imposed blanket IPR.

IPR might be saving NPB, but it could also be losing sales, simply because of the ''No Trust'' message it sends.

Personally, I don't like this forcing when I come across it as a Buyer - and I have even backed off a couple of times.  As such, I CAN say that IPR has resulted in a couple of Sellers NOT getting my business.

In addition, forcing IPR for a Seller I help out is going to decimate a significant portion of their business.

By allowing an opportunity to customise a shipping cost for multiple items, they are able to provide the BEST VALUE for the customer while retaining their margins. Bonus ''profits'' from multiple shipping costs are a big wet blanket to sales.

Remember - ''Free Shipping'' is a lie.  There is no such thing.  It should be ''Shipping Included'', but I know that's not a great selling point - however honest it is.  (Truth and marketing don't play well together).

Also, automating the shipping rules is not easy when you have products that vary in size from that of a toothpick - where you could send 20 of them anywhere in Australia as a letter for $2 - up to something the size of a basketball (but weighs half as much) that is subject to cubing - or other things that are just heavy for their size - that can only go as parcels.

As individual purchases, shipping cost is easy, but calculating for any combination of them is an automation nightmare. (If anyone has a functioning algorithm for this - I would like to know!)

However, by allowing customers to buy multiple items before payment, my Seller friend is able to do something that I have yet to see get automated with any semblance of accuracy - choosing flat rate satchels where they are cheaper than standard parcel rates.

BUT even if that COULD be automated, there is still one VERY VALUABLE opportunity that is available through doing it manually - and that is this: When the satchel is only half full, the Buyer can be contacted and told there is more room - and that they can add things to their order for no additional PP&H, so long as they fit.

Sometimes there is nothing added, but other times there is.  On a few occasions - yes, more than once! - an order of ~$100 has had ANOTHER $100 (give or take) of product added.

So, tell me eBay - why do you want to reduce sales?

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This user has validated their user name. by: Bill

Sat Jul 15 00:44:37 2017

Mickey Finn:

Because eBay is run by a bunch of blooming idiots that have no idea at all how marketing works. Period!

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by: mickeyfinn This user has validated their user name.

Sat Jul 15 22:37:39 2017

I wish I could argue against that statement ... but it's difficult.  Even if I were to try, it would be an academic effort (like when you get the rubbish end of a topic in the Debating team).

For all the pain and anguish eBay imposes on Sellers to attract Buyers onto the site and court them out of their money, you would think eBay understands the fragile nature of the buying process - wouldn't you?

Sitting at a computer with a dozen websites offering the desired product, it only takes the merest whim for a window to be closed - and when that happens, the loss of a sale through that channel goes with it.

Yeah.  Instant payment - for each individual item - works a treat.  If the implied trust issue isn't enough, the multiple payment of shipping charges will be.

What's even worse is that there are a lot of Buyers that will blame the Seller.  Ever notice how impossible it is to give feedback on eBay's performance? ... but that's another story.

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