Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue May 31 2022 08:51:33

Should eBay Automatically Refund Fees for Cancelled Orders?

By: Ina Steiner

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eBay sellers probably agree they should not have to pay fees for cancelled orders, and for the most part that's true. However, a seller told us that eBay did not automatically refund their Promoted Listing ad fee when a buyer cancelled a sale. 

"I had to get mine back by chatting with eBay," the seller told us. 

We checked the policy page on eBay, where it says it will refund Promoted Listings Standard fees in cases where the buyer asked the seller to cancel their order; or when there was an issue with the buyer's shipping address; or when the item was out-of-stock or damaged. 

However, it does not say if it will refund fees for Promoted Listings Express (for auction listings) or Promoted Listings Advanced (cost-per-click ads).

We searched and found a post from a member of the Promoted Listings team in response to a seller who had a similar experience a few years ago. The eBay employee said eBay does automatically credit Promoted Listings Ad fees for returns and canceled items, but added some information about the timing of the credits that may be helpful to sellers who encounter similar situations:

"I would encourage you to check the following months invoice to see if the fee was indeed credited," according to the 2017 post. (The conversation continued into 2019 until it was locked by a moderator.)

If you've opted to run Promoted Listing ads, does eBay automatically credit you the following month (or ever) for cancelled orders? Or do you have to call eBay to get the credit? 

What about the other frees eBay credits for cancelled orders?

Even if you don't advertise through eBay, the email from the EcommerceBytes reader serves as a reminder to check your invoices carefully - and that applies to all platforms, shipping carriers, and service providers you use. And be sure to tell us what's going right and wrong for you.



Comments (14) | Leave Comment | Permalink

Readers Comments

Perminate Link for Should eBay Automatically Refund Fees for Cancelled Orders?   Should eBay Automatically Refund Fees for Cancelled Orders?

by: AddyUp This user has validated their user name.

Tue May 31 12:05:57 2022

Of course they should as eBay sellers are fully protected.

From eBay's latest email that they're sending out.

----------------------------------------

Be part of the eBay selling community

Seller protection
As a seller, your transaction
is fully protected from events
out of your control.

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by: terry55 This user has validated their user name.

Tue May 31 15:48:48 2022

Can't say about promoted listings but there was a huge discussion come up when this came out. The .30 is only refunded if buyer cancels within and hour of buying.

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This user has validated their user name. by: Rexford

Wed Jun 1 11:03:57 2022

Charge the "buyer". The buyer comes out of these unscathed.  Sellers are clipped.  eBay is the only site that I sell on where there is an abundance of cancellations.  Lots of flakes buying on eBay.

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This user has validated their user name. by: iheartjacksparrow

Wed Jun 1 11:50:55 2022

Rexford is correct. One of my eCrater policies is that if a buyer cancels the order, I deduct from their refund the amount that Stripe charged me for processing the payment.

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by: eBaySince2006 This user has validated their user name.

Wed Jun 1 14:22:19 2022

I remember when PayPal announced they weren't refund fees anymore. It ended up costing my business around $5,000/yr in income. I was glad to join eBay payments after that. As long as they refund the final value fees I'm ok.  

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by: Alfacar This user has validated their user name.

Wed Jun 1 17:42:16 2022

I wish they had invoices like they used to years ago.  Now they telling you to go through the payments tab and search order nr or item nr.  Happened to me befor: Sometimes they “forgot” to refund promoted fees and sometimes it wa impossible to recover.
It was called invoice because you were paying it after reviewing .  Now it is a statement after the fact.

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by: Mazdaman This user has validated their user name.

Wed Jun 1 23:19:20 2022

We accept PayPal on our website, and we explain that since PayPal  doesn't refund fees, we don't either for those using PP.

Honestly , we never will use "Promoted ANYTHING" eBay conjures up, and it isn't surprising to us that eBay doesn't refund all the fees.  I think eBay knows how many canceled sales occur, and they wouldn't make any money from them if they refunded EVERY dime, would they?

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by: Actual Seller This user has validated their user name.

Thu Jun 2 00:56:40 2022

All I know is eBay has never given me back my 30 cents as they pretend to do.

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This user has validated their user name. by: Marie

Thu Jun 2 01:14:43 2022

Currently Ebay refunds ALL fees on any order a buyer paid for [no fees charged if no payment was transmitted] and the buyer filed for the cancellation using the process that is available to them within one hour of the purchase.

Ebay does NOT offer FVF or transaction fee refunds if a buyer simply sends an email asking for a cancellation.  Lots of sellers are lobbying Ebay to change this policy to be all inclusive.  Who knows what will come of it.

The fees for promoted listings get refunded too, however it is my understanding that there is a short delay in the credits.  They do get credited in short order.

https://www.ebay.com/help/selling/fees-credits-invoices/
fee-credits?id=4128

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This user has validated their user name. by: Marie

Thu Jun 2 01:19:00 2022

@Actual Seller

"All I know is eBay has never given me back my 30 cents as they pretend to do."  Ebay has never said they would refund the 30 cent transaction fee except now on this newer Cancellation rule if the buyer uses the formal process to request the cancellation [if they had actually paid for the purchase].  Other than that, Ebay never made any claim to be refunding this fee for any reason.

BTW, neither did Paypal.  They always kept the 30 cent fee too, unless the payment was fully refunded due to a cancellation on the same day the payment was received.  

So this isn't a new thing either.  Just that some are more aware of it now that they are in MP.  Lots of sellers are seeing fees differently in MP than they ever noticed when we used PP, when in fact overall not much has changes SPECIFICALLY in regards to fees.  Some minor differences, but overall the fees are the same.

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This user has validated their user name. by: Marie

Thu Jun 2 01:23:10 2022

@iheartjacksparrow and @rexford

"Charge the "buyer". The buyer comes out of these unscathed.  Sellers are clipped.  eBay is the only site that I sell on where there is an abundance of cancellations.  Lots of flakes buying on eBay."

You can actually do this on Ebay too.  As of May 23rd, we now get our FVFs and Promotion fees proportionately refunded when we partially refund a buyer.  

So if this is something you want to do because your buyer did NOT cancel the order formally within the first hour after their purchase and only sent you a regular email requesting the cancellation.   Simply withhold the 30 cent fee that you can't get refunded.  That is all you should withhold as your other fees will be refunded.

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This user has validated their user name. by: Marie

Thu Jun 2 02:14:09 2022

@iheartjacksparrow and @rexford

Correction on my math.  You'd need to withhold about 34 cents from the refund so you can cover your fees that won't be refunded.

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by: Surplus This user has validated their user name.

Thu Jun 2 06:22:49 2022

It's actually real simple.  I have a website and sell on Ebay exact same items.  The inventory is coordinated through a piece of software.  Our prices on Ebay are 20% higher than the website due to the outrageous fees and stupid stuff like this that costs me money.  Fact is Ebay is a high cost venue to sell in and we charge accordingly.  We are not going to lose money because of ebay's fees or policies.  Profit is not a dirty word in our business.

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This user has validated their user name. by: Lightning

Fri Jun 3 00:49:52 2022

People, please stop with the 30 cent thing.  Take it on the chin when it happens, but GET EVEN in some other way.  Call it 30COMP (compensation for eBay taking the 30 cents, which is actually not eBay but the cc company). Maybe that email you get for additional sales never hits eBay - that's a 30COMP!  Or some other creative way to fight back.  

Don't get mad, don't complain, just find a way to strike back, to even the playing field.  They give you a jab, you respond with an uppercut.  This is business - you gotta do what you gotta do.  One bypassed FVF will wipe out the entire year's 30 cent gouges.  You're not doing it to cheat, just recovering what was yours in the first place.  Just do it!



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