
eBay confirmed today that it will begin charging US sellers penalty fees for what it considers excessive claims or under-performance beginning October 1st. However, eBay UK sellers caught a break - earlier in the day, eBay UK announced it is postponing implementation for sellers in that country until next year.
eBay will charge an extra 4% Final Value Fee (FVF) when sellers fall below standard. The average FVF is 10%, so 14% is a 40% increase in fees.
In eBay's reminder today, it explained:
"The additional fee of 4% for very high rates of "item not as described" and for below standard performance are not subject to maximum final value fee caps, and will be applied to the total amount of the sale, including shipping. Final value fee discounts, including Top Rated Seller discounts, will not apply to the additional 4% final value fee."
Seller B sold a men's wristwatch for $9,640, including shipping. The seller has an Above Standard seller performance level and a Very High evaluation for 'Item not as described' returns on eBay.com in the Jewelry & Watches category, so an additional 4% final value fee applies.
Final value fee calculation: 10% of $9,640 = $964 (fee capped at $750). 4% of $9,640 = $385.60. Total final value fee: $750 + $385.60 = $1,135.60
Readers should note that eBay's example is an increase in fees of 51%.
A reader emailed us to voice frustration, calling it "the most convoluted, self serving, inappropriate, insulting and ridiculous policy change eBay has EVER done. They will be judge, jury and executioner on a policy that they will receive a financial gain from."
And, they added, "Let us not forget that eBay promised that SNAD requests would NOT be held against us as long as we resolve the issue with our buyers while it was in the request stage."
Be sure you review the changes carefully as this can clearly be an expensive proposition if run into some troublesome buyers or experience challenges in your business - here's a link to the
eBay Announcement board post.