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@satpran wrote:

It is annoying and unfair ever since they introduced commission on postage. Yes eBay wouldn't put you on Top rated seller/Premium service rating unless you offer free postage and 30 day returns. They also claim that if you follow their recommendations, your listings will get priority when buyers do the search. We sellers have no other options or alternative except to follow what they say.

Just try and see couple of your listings with free postage by adding to the item cost, if you see a difference in your sales, that is good for you. You offer free postage or with postage eBay charge you the same FVF in the end anyway. 

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I don't have 30 day returns on anything and around 50% of my items have a postage cost. I am both a Top Rated Seller and a Powerseller. My sales are running along quite smoothly without having that silly Premium badge. My handling time is 5 days. I used to have a 1 day handling time and due to my work, there were times when I couldn't achieve that. I changed it to 5 days mostly to fatten out that silly estimate eBay put in the listing. My sales haven't altered one bit since I extended my handling time. I still try and post by the next day if I can manage it (although I have been marked down on stars for a buyer buying on Friday night and I post Monday).

As a buyer, I couldn't care less if a seller has a Premium badge or not. As long as they have good feedback, that's good enough for me. I also don't have an issue with paying for postage. I know I'm not alone in that either.