Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon Aug 12 2019 20:10:29

eBay Sends Drop Ship Violation Notices

By: Ina Steiner

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Some sellers who do not drop ship as a product-sourcing strategy say eBay sent them a notice that they are violating its drop-ship policy and will lose their Top Rated Selling status. One seller reported the issue on the Ecommerce EKG board and wondered if it was a technical issue.

eBay allows sellers to drop ship from wholesale suppliers, but not from retailers. Here's what eBay's help page says about drop-shipping:

"Drop shipping, where you fulfill orders directly from a wholesale supplier, is allowed on eBay. Remember though, if you use drop shipping, you're still responsible for the safe delivery of the item within the time frame you stated in your listing, and the buyer's overall satisfaction with their purchase.

"However, listing an item on eBay and then purchasing the item from another retailer or marketplace that ships directly to your customer is not allowed on eBay. In such cases, we may remove your listings from search, display them lower in search results, or remove them completely from the site. We may also limit, restrict or suspend your ability to buy, sell, or use site features on eBay, and you could lose any special status and/or discounts associated with your account."

Another seller recently forwarded us a copy of the email eBay had sent them (the seller didn't have TRS status). Here's a copy of the notification from eBay:

Subject: Your Top Rated Seller status will be removed: Selling practices - drop shipping
policy

Your Top Rated Seller status will be removed: Selling practices - drop shipping policy

Hello,
We've determined that you haven't followed our selling practices - drop shipping policy therefore, we will be removing your Top Rated Seller status until your account is in compliance with the policy.

There is evidence on your account that you are purchasing items from an online retail or marketplace site after you sell the item on eBay and having that retailer ship the item directly to the customer. This is a violation of the terms and conditions section of our Selling practices policy, which states:

·Items you list must be in your inventory or you must have an existing agreement with a third party to fulfill the delivery of the item under the terms of your listing.

For more information on this policy, please go to:



Regards,
The eBay team

Sellers had reported getting such notices in January. 

In April's Spring Seller Update, eBay warned that sellers who used a retailer to ship directly to buyers would face reduced search visibility. As we noted at the time, the policy appeared to be an attempt to reduce incidents where buyers receive their eBay orders in Amazon packages (or Walmart and other retailers' branded boxes), which can lead to confusion and/or disappointment on the part of eBay buyers.

Comments (53) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: OhWhatFun This user has validated their user name.

Wed Aug 14 00:59:06 2019

Their box supplier is charging the wrong tax and ignores me when I ask them for information as to if they are registered here.  
I dont mind mailing items for dropshippers, maybe I need to put a notice on my store, "3rd party agreements available ".
I think my sales would go down a lot if it were not for those sales.

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: OhWhatFun This user has validated their user name.

Wed Aug 14 00:59:07 2019

Their box supplier is charging the wrong tax and ignores me when I ask them for information as to if they are registered here.  
I dont mind mailing items for dropshippers, maybe I need to put a notice on my store, "3rd party agreements available ".
I think my sales would go down a lot if it were not for those sales.

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: Snapped This user has validated their user name.

Wed Aug 14 05:14:33 2019

''Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.''

eBay (i.e., ''the store'')  doesn't keep the products ''it sells'' as the (too soon to be) merchant of record either, taking payment so to skim their take prior to paying the 'third party' their due (i.e., purchasing it from that third party).  That third party (YOU) is who ships directly to the buyer.  eBay never sees or handles the product.  Ergo, eBay is a dropshipper, no matter how cleverly they will try to 'describe' such a transaction otherwise.

The question is, are YOU a wholesaler, or are YOU a Retailer?

Guess that depends on your tolerance for taking the eBay hypocricy stick up your (re)tail.



Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: pace306 This user has validated their user name.

Wed Aug 14 09:59:48 2019

People are so ready, willing and able to hand over aspects of their business to the San Jose Mafia with nary a thought.

Its none of eBays business where you get items from.

I dont drop ship - so it doesnt matter to me - my issue simply is "letting eBay tell you what to do when its none of their business".

There are people (well one special certain someone) who thinks that because you sell on their platform - that gives them wholesale (no pun intended) control over what you can or cant do.

Amazon states you cant use your Prime account to do drop ships, but you certainly can with your regular seller/business account. Why? 'cause Amazon doesnt care where you get things from as long as 1) its legal 2) the buyer is happy.

There are SO MANY issues that eBay has now, why this is even anything of importance is mind boggling.

"Now that you let" eBay tell you where/how you can source things from - what if they told you/took things farther - how far - how much control of your business are you willing to give away, before you say ENOUGH.

They already have control over the payments part, they have control over the returns part, whats next?

If you dont complain now - there will be NO ONE to blame when DWs next stupid idea comes down the pike - and you know DW is full of them - the man's dumber then a dead cockroach when it comes to ecommerce.

Just worry about making sales, when your business is growing (like Amazons), THEN maybe worry about such sillyness "ohhhh the box said Amazon on it - the HORROR!".

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

This user has validated their user name. by: FEEbay

Wed Aug 14 10:33:48 2019

@mjr55
"Not sure Ebay's stance on this but Amazon makes it VERY clear you are not to use FBA to drop ship anywhere. It's suspension time if they catch you and there are a couple threads per day of sellers being suspended for this on there."

If this is the case, then why does FBA have a feature "Create a Multi-Channel Fulfillment Order" that allows you to dropship anything from your FBA to any customer?? We do it all of the time, including to Ebay buyers. One would think that a buyer would actually be HAPPY with getting a package within 2 days if we are out of stock here, instead of waiting for a backorder to be fulfilled!

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

This user has validated their user name. by: FEEbay

Wed Aug 14 10:38:16 2019

It is always hard to guess "intent" on the part of the idiots at Ebay, but my guess is that they are trying to limit Retail Arbitrage more than anything else. I don't see how a buyer receiving a product in an Amazon box is any different than a buyer receiving a product in a box with a Distributor's packing slip inside, or the Distributor's name on the packing tape. As someone who dropships 200 order per month on Ebay, and uses both FBA, and Distributors for this, not ONCE has a buyer complained.  

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

This user has validated their user name. by: toolguy

Wed Aug 14 11:40:58 2019

This is all for the upcoming of hiding eBay seller ID's

eBay will the seller, you are the supplier, they don't want a 4th party involved.

The writing is on the wall if you care to read it.

We will all become fulfillers of eBay's sales!

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

This user has validated their user name. by: toolguy

Wed Aug 14 11:44:46 2019

"They already have control over the payments part, they have control over the returns part, whats next?"

Same goes with Amazon & Etsy

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

This user has validated their user name. by: NoMoreEbay

Wed Aug 14 12:45:54 2019

If the buyer is staring at his widget received on time, exactly as described for the price he paid, what's the difference how it was shipped or from whom?  (China masking as California excluded of course.)

What's the difference If the shipping container says Amazon or anything else as long as it's not something obscene?

I really want to know because to me, this is much ado about nothing.  

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: pace306 This user has validated their user name.

Wed Aug 14 13:35:23 2019

“Same goes with Amazon & Etsy”

At least with Amazon you make sales - usually 10x what you do on eBay- comparing the same item.

And Amazon doesn’t tell you anything about drop shipping- which is the topic here.

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

This user has validated their user name. by: toolguy

Wed Aug 14 15:50:58 2019

"At least with Amazon you make sales - usually 10x what you do on eBay- comparing the same item."

If you sell 10x on Amazon that you do eBay why do you even bother with eBay?

You would sleep better at night and not have to even worry about what eBay is doing if YOU didn't sell there.

Let it go pace, let it go. . . .eBay will survive without you. . .

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: Geetar This user has validated their user name.

Wed Aug 14 21:29:55 2019

I dont think now is the time for ebay to be sending sellers to the curb. But them again, when did they ever do anything that made sense!

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: pace306 This user has validated their user name.

Wed Aug 14 22:20:32 2019

“If you sell 10x on Amazon that you do eBay why do you even bother with eBay?“

Since your knowledge of e-commerce is limited, you would know about Amazon and brand gating and why another site is needed.

Amazon grew %20, eBay %2 WITH Stubhub - put down the rusty tools and learn about e-commerce please 😀

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: mjr55 This user has validated their user name.

Thu Aug 15 01:38:12 2019

@FEEbay, you are totally right, I mis-spoke. You cannot use your PRIME account to dropship. Yes, you can use FBA for just about anything.

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: Snapped This user has validated their user name.

Thu Aug 15 07:44:08 2019

"eBay will survive without you. . ."

Tell us, wise eCom sage, what percentage of one's paying customers is it permissable to disrespectfully suggest they 'go away' if they 'don't like your terms', and still expect to "survive without" them?

Or is 'survival' a sufficient enough business plan to advocate?

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

This user has validated their user name. by: toolguy

Thu Aug 15 11:24:37 2019

@snapped

You and pace are a very very very small % of eBay sellers.

Most sellers DON'T have near the problems you 2 have.

One must ask WHY?

No matter if I know ecommerce or not, I sell more then you do on eBay, always have always will. . . . .

PS: I look at the products you have for sale on eBay, what is gated on Amazon that you have in stock?

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

This user has validated their user name. by: toolguy

Thu Aug 15 11:33:02 2019

@pace306

DROP SHIPPER

Even an amateur can spot this one out. . . .

Listings with 1 or 2 pictures, listings with only "stock" photo's

You might have eBay fooled but you're not fooling me!



Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

This user has validated their user name. by: toolguy

Thu Aug 15 12:31:03 2019

@snapped

This was meant for pace as I have NO idea what you sell on eBay!
But if you want to reveal your eBay ID I would be happy to shop you and see if you have anything I might want to buy. . .Pace has a few items I like but I wouldn't even dare buy from him, I would spend more with ANY other seller. . .
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

"No matter if I know ecommerce or not, I sell more then you do on eBay, always have always will. . . . .

PS: I look at the products you have for sale on eBay, what is gated on Amazon that you have in stock?"

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: thievesBay This user has validated their user name.

Thu Aug 15 13:48:48 2019

eBay are trying to get rid of as many TRS as they can in order to charge more fees. TRS have been greatly diminished over the years by sellers leaving and eBay's own punishment metrics. They don't want TRS. eBay only cares about 1 thing: more money for them, whether it's wrongly taken or stolen doesn't matter.

Perminate Link for eBay Sends Drop Ship Violation Notices   eBay Sends Drop Ship Violation Notices

by: pace306 This user has validated their user name.

Thu Aug 15 13:55:14 2019

"@snapped

You and pace are a very very very small % of eBay sellers.

Most sellers DON'T have near the problems you 2 have.

One must ask WHY?"


WRONG - alot of sellers do - we are just more vocal about it. The squeaky wheel, gets the grease.

Your lack of ecommerce (not your fault - its not your field) is why you continue to say things that are not correct/true. I wont speak for SNAPPED - hes HIGHLY intelligent, spot on on %100 of his posts, and someone you would do well to listen to - but personally - Ive been doing this (selling/selling on line) since the mid 80s.

I have no time or interest in just posting crap, nor do I (like another person here AHEM) just say the opposite to get a rise out of people.

Im critical of eBay because Im a paid user of their service - just like anyone else or any other company.

"PS: I look at the products you have for sale on eBay, what is gated on Amazon that you have in stock?"

Again - since you do know about ecommerce - you dont know what brands/categories are blocked ....

Tool - lastly - I take all my own pics/scan each one in. If you have a fast FTP that can handle 6-8GB of pictures - Ill upload them to you and then you can right click on each one and look at the header info that describes what scanner/camera was used, date and time.

If I were you - Id read a few more of SNAPPEDs columns - you may get a good primer on ecommerce.

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