topic Re: is this coming to AU? paypal to keep refund fees. in Selling

is this coming to AU? paypal to keep refund fees.

purchasenetwork — Wed, 16 Oct 2019 15:17:09 GMT

PayPal reinstates controversial policy of pocketing fees from refunds

PayPal is reinstating a controversial policy around its handling of fees in the event of a refund. Starting next month, PayPal will begin pocketing the initial 2.9 percent commission fee sellers forfeit during a transaction even when the seller is refunding a customer in full.

https://www.theverge.com/2019/9/20/20876570/paypal-refund-fee-policy-change-sellers-controversy

Re: is this coming to AU? paypal to keep refund fees.

padraicpaul91 — Thu, 17 Oct 2019 02:45:32 GMT

Much as I dislike this apparent about turn by paypal, it represents only a minor increase in costs.

My return rate is currently 0.2%, so it will have little impact on my bottom line.

Re: is this coming to AU? paypal to keep refund fees.

purchasenetwork — Fri, 25 Oct 2019 03:02:26 GMT

oh sorry my mistake! i didnt know it was all about you and your bottom line....

i guess since ebay wants sellers to accept returns for change of mind, sellers will be happy wearing those extra costs...

(FYI im being scarssitc as it seems you miss the point of things)

Re: is this coming to AU? paypal to keep refund fees.

k1ooo-slr-sales — Fri, 25 Oct 2019 03:20:39 GMT

you may or may not like what I post . . . but I’ll give it a go anyway.

If the thought of not being refunded the PayPal fee when refunding is an issue for you then why not just raise the total price of your higher priced items by $1 so that when you are in the situation of refunding you are not out of pocket the PayPal fee?

Many sellers do a similar thing to cover the cost of refunds. They see it as a sort of ‘self-insurance’. Just add a dollar to your P&H charge or add a dollar to the price of your ‘free postage’ items.

I can understand any reluctance sellers may feel in implementing the strategy I have outlined . . . but if a seller’s selling situation is so perilous that what I have posted is not feasible for them then maybe selling is not for them (at this time).

Just sayin’

Re: is this coming to AU? paypal to keep refund fees.

whoisbiggles — Fri, 25 Oct 2019 04:24:00 GMT

With you mate - this is a b.s. policy.

What is the cost to Paypal when I refund a transaction without question?

The $0.30 impost seemed reasonable - expecially if all the paypal / ebay processing was done without any paypal / ebay employee being required to step in and adjudicate a claim.

The rollout of the Ayden payment system cant be too far off. Be interesting to see what they offer.

Re: is this coming to AU? paypal to keep refund fees.

eol-products — Fri, 25 Oct 2019 04:38:46 GMT

What if the item is in the thousands. It can get expensive quickly.

Re: is this coming to AU? paypal to keep refund fees.

k1ooo-slr-sales — Fri, 25 Oct 2019 05:41:55 GMT

@eol-products wrote:
What if the item is in the thousands. It can get expensive quickly.

the strategy I posted about would enable a seller to accumulate all those extra $1 amounts. The PayPal fee loss would only be incurred on refunded items, and, if a seller is having to refund often then they need to make hard decisions about selling on eBay.

For seller’s who regularly sell items for thousands of dollars then scale up my suggestion and add $10 to each listing.

It’s not rocket science. Sellers can adjust the amount to add to their listings based on the value of what they sell:

- a seller of $2 widgets would only need to add 10 or 20 cents to each of their listings.

- a seller of $10 to $20 items could add 50 cents

- a seller of $50 to $400 items might add $1 or $2

- a seller of . . . . . should be obvious by now.

There is a way for sellers to calculate how much to add to their listings. It needs sellers to estimate their potential losses and number of sales. Here’s the formula:

( [PayPal fees forfeited per yr due to refunds] divided by [# of sold listings per yr] ) multiplied by 1.1 = amount to add to listings

The ‘multiplied by 1.1’ Just adds 10% more for wriggle room.

Re: is this coming to AU? paypal to keep refund fees.

eol-products — Fri, 25 Oct 2019 08:20:35 GMT

When does this start, the article mentions 11th October. I have not noticed any thing different but I wont get my hopes up just yet.

Re: is this coming to AU? paypal to keep refund fees.

davewil1964 — Fri, 25 Oct 2019 10:52:07 GMT

It's started. At least 18 days ago.

Re: is this coming to AU? paypal to keep refund fees.

eol-products — Fri, 25 Oct 2019 11:04:14 GMT

So has anyone not had the paypal fee reversed. I am stiil only losing the 30c which I can live with.

Re: is this coming to AU? paypal to keep refund fees.

davewil1964 — Fri, 25 Oct 2019 11:50:55 GMT

@davewil1964 wrote:
It's started. At least 18 days ago.

Yes

Re: is this coming to AU? paypal to keep refund fees.

oz-e-seller — Sat, 26 Oct 2019 02:20:59 GMT

It hasn't started on my account yet. I refunded someone yesterday and only lost the 30c fee.

Re: is this coming to AU? paypal to keep refund fees.

eol-products — Sat, 26 Oct 2019 02:31:43 GMT

I feel there would be more complaints on the forums if it had started.

Re: is this coming to AU? paypal to keep refund fees.

digital*ghost — Sat, 26 Oct 2019 02:41:56 GMT

Some accounts had it implemented on the 11th of October, others (mine included) are slated to have it implemented on the 1st of November, at least according to the email I got recently.

I don't know why it didn't happen for all accounts at the same time, but I do know I am currently not losing the fees when refunding, but others are.