Ebay U-turns over forced free P&P

Posted on 5 Feb 2010 at 12:48

Much to the indignation of sellers, Ebay introduced a free postage and packaging requirement in 2009 in several categories including accessories and media. Ebay said this was because most online retailers offer free P&P, and buyers now expect it.

However, sellers didn't agree, especially those selling products in auctions with low starting prices. As one of Ebay's forum users put it at the time, "There is no such thing as free P&P - just go to your local Post Office for proof".

Fortunately Ebay has realised its mistake and, from February 8th, it will remove the free P&P requirement and replace it with maximum limits to charges. This is what the company should have done in the first place, as it prevents sellers charging over-inflated shipping costs. Some sellers do this to offset low item prices, which avoids them paying such a large Final Value Fee to Ebay.

Ebay is also making two other significant changes in April. One is that it will lower the sales level to enter the PowerSeller scheme. This will mean more sellers that provide excellent service will be rewarded with benefits and discounts. The second change is that the "minimum performance standard for selling on eBay will be raised to ensure a consistently high level of service across the marketplace". Sellers who fall below these standards will have their listings demoted in searches and will have restrictions placed on their selling activity.

Author: Jim Martin

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