topic Re: Is there a maximum return rate which seller should maintain? in Selling

Is there a maximum return rate which seller should maintain?

prime.gadgets — Thu, 14 May 2020 00:54:58 GMT

Is there a maximum return rate per category or account that eBay seller should maintain, otherwise eBay impose any penalty or restrictions to the account?

Many thanks in advance...

Re: Is there a maximum return rate which seller should maintain?

kopenhagen5 — Thu, 14 May 2020 01:07:55 GMT

Seller performance - https://www.ebay.com.au/help/selling/selling/seller-levels-performance-standards?id=4080

- https://sellercentre.ebay.com.au/how-we-measure-seller-standards

Re: Is there a maximum return rate which seller should maintain?

prime.gadgets — Thu, 14 May 2020 01:20:48 GMT

Hi, Thanks for the reply. I'm clear that it does not affect the seller performance level. Needed to know if eBay impose penalty or restrictions to the account.

Re: Is there a maximum return rate which seller should maintain?

kopenhagen5 — Thu, 14 May 2020 02:25:52 GMT

Yes eBay impose higher final value fees if return rates get to a certain level within a particular category but I think it also works on an algorithm based on peers selling in that category.

If you are using seller hub then go into Service Metrics.

Re: Is there a maximum return rate which seller should maintain?

digital*ghost — Thu, 14 May 2020 02:41:23 GMT

It depends on the reason for return, and the rate of returns your "peers" are getting, which unfortunately makes it very difficult to gauage an exact number, except by percentage.

Items returned for change of mind reason don't count, but returns requests that are initiated for not as described do - if you click on the "performance area" link in the overview of the seller hub, then "service metrics", it will show a simple bar graph of where you currently are, where the "peers" (unknown, but supposed to be sellers with similar items and transactions to you) are averaging which in turn determines what will count as "very high" for your categories.

On mine, it shows that my peers average a 0.19% return rate for INAD, and just guessing from the visual, it looks like "very high" would be 0.5% of transactions resulting in a return request for INAD.

It doesn't result in account restrictions or suspension of selling ability (unless the requests become cases resolved without seller resolution), but it can add an additional 5% to your FVF, and that's not a 5% increase, eg my current FVF is 8.55% so if I was rated 'very high', I would start paying 13.55%, which is just over a 58% increase.

Re: Is there a maximum return rate which seller should maintain?

dontmissthese — Sun, 05 Feb 2023 11:27:17 GMT

I know this is an old post but the penalty is 50% of the current FVF not just the
addition of 5%.

Re: Is there a maximum return rate which seller should maintain?

springyzone — Sun, 05 Feb 2023 23:22:57 GMT

That's what she said?

but it can add an additional 5% to your FVF, and that's not a 5% increase, eg my current FVF is 8.55% so if I was rated 'very high', I would start paying 13.55%, which is just over a 58% increase.