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Need insight on whether to delete my seller account or not , detailed scenario

I need some advice on how to deal with ebay and what the best options
are for me. They recently just this month moved me to below standard
performance levels and i found this ought by them moving my fee's up
from 3.5% to 7.5% with a 4% "penalty". My invoice was about double
what it should have been and this is how it came to my attention.

The reason this happened is almost unbelievable  it is so stupid.

I sell guitars only. I sell about  a gross of 250k worth of guitars on
Reverb dot com. That is a great E-commerce site and my main source of
business. On ebay i do about 80-100K.

I list guitars on each site, whichever one it sells on first, i take
it down off the other one.

I have had one "bad deal" in the last 120 transactions i have had as a
seller. It was a remorseful buyer who made up a damage claim, i got
the guitar back there was no damage. I paid for his shipping, and ebay
as always takes the buyers side. That gave me one Seller defect.

Apparently and unknown to me, i had 4 other defects in the past year
and this was enough to put me below standard and in the penalty box.

When i have to cancel a transaction. There are options/selections for
the reason why a cancellation is needed. This were for a variety of
reasons. Buyers wanted me to ship to a non approved address. Or in the
case of Russia, they pulled all shipping insurance to Russia so this
year i lost my Russia sales. So when i cancel a transaction i did not
know that this can work against you. Many times i just pressed " Out
of stock" as that seems like a peaceful way to back out of a
transaction and refund the buyer and relist.

So apparently i learn now that that is the kiss of the death to your
seller account and it acts as a transaction defect. All it took was 5
of these total over the course of 12 months for them to sack my seller
status.

In that times i have sold over 100k in sales, have excellent feedback,
only had one return. Uploaded all my shipping info on time.

All of this is because of cancelling transactions on goofy deals.
Belatedly i learned that i should have always chosen something like
"there is a problem with the buyers address" or something that defers
the blame away from me. Often times this was the case, but i figured
why does it matter? A cancelled transaction done right away should not
hurt me. My instinct was that refunding the buyer promptly was the
important part. I should have been more concerned with " How is ebay
gonna try and screw me".

So here is the problem. I do not sell a lot of items i sell high
priced items. I have guitars that i sell for as much as 2900$, so
selling 80 guitars on ebay and 200 on reverb is a great year for me
over the course of a year.

Reverb charges me 3.25% fee's and are an easy and honorable company to
work with. Ebay was forced to move their fee's down to 3.5% in the
category of guitars because of Reverb to compete with them. If there
was no Reverb. Ebay would still be charging a 10% fee on guitars.

So now suddenly my fee structure is 7.5% on ebay because of falling
below standard.

I called ebay and explained to them that these defects were not my
fault and i was unaware that i willingly giving myself a defect. They
sympathize but do not have the power to change anything . It was not
this way years ago on ebay. The new ownership is terrible.

So they do not want to make it right. There is no way i am going to
sell high end guitars at a 7.5% fee when i sell them on REverb for
3.25%. It would not be wise business to do so.

They want me to keep selling to rebuild my status, but what i did
today is i pulled my entire inventory of 35,000$ off of ebay. It's
mind boggling to me that they do not look at the bigger picture, they
do not have the power to work something out with me.

They told me i should sell a bunch of low priced items to get my
status back up. I cannot do that and do not have the time for it.

So what i am pondering at this time is closing out my seller account,
perhaps even my account entirely and just starting over.

The reason i still value ebay even though Reverb is superior for
guitars. Is having both simultaneously increases the speed at which
they sell. So it moves faster for me and some people still have not
heard of Reverb so there are reasons to want to stay on board.

So they have ways of trying to stop sellers from starting new
accounts. But here is the thing. I am not banned, or restricted. I am
at a 4% defect rate, and they say i need to get to a 2% rate, and they
want to gouge me on fee's for hundreds of dollars each month to
rebuild that status. They removed one of the 5 defects, so maybe i am
3.5% defect rate now or something like that.

So my question is there a way to just start a new account? The
feedback system means absolutely nothing in my industry. If you have a
good ad a good product and good pictures and a competitive price, your
guitars will sell so my 99% positive feedback 500 score actually does
not mean that much to me. The bottom line for me is all about fee
structure.

I will not sell guitars at 7.5% , but i would sell them at 3.5%. If
there is a way to get back to 3.5% i still sell here.

Also i believe i can maintain good standing because i know now the
loophole by which they got me. I was never a bad seller, i  was
completely naive ( and also busy running a business that they profit
from) about their transaction defect system as it pertains to how you
classify a cancelled transaction.

So what is the best method of starting over? Is there a streamlined
way to do this?

I do not think i can salvage my current account. It's a matter of
principle to me.  I will not be punished financially for cancelling
transactions that were flawed.

What's the best way to start over, step by step.

Message 1 of 19
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18 REPLIES 18

Re: Need insight on whether to delete my seller account or not , detailed scenario

"Why would they not consider a new account being open as fee evasion? "

 

 

Because they don't.

 

 

"" When does it become illegal to open a new account?"

 

 

When you have been suspended.

Message 16 of 19
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Re: Need insight on whether to delete my seller account or not , detailed scenario

If your account doesn't meet the standards, you:

  • Need to resolve all issues on the account before buying or selling with other accounts
  • Can't register for a new account
  • Can't use an existing eBay account to avoid buying and selling limits or other policy consequences
  • Pay a higher percentage rate for final value fees
Message 17 of 19
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Re: Need insight on whether to delete my seller account or not , detailed scenario


"It is not dishonorable for anyone to enforce their policies."
This is not a matter of 'policy', it's a matter of providing reasonable customer service in an understandable situation. A low-volume seller is much more vulnerable to the impact of a few cancellations. Changling was caught in a web set for third party sellers, those who fill orders by shipping from someone else's stock.
Obviously, Changeling does not fit that criteria. Just as obvious is that the punishment, the financial penalty, far outweighs the crime. Ebay failed to account for the way those low volume sellers were unjustly affected,
and they gave every sign of knowing what they were up to, and wanting it that way.

Ebay knew that they could trap many people with additional fees, if they only:
1) bombarded our inboxes with notices about shipping, and fast n' free, and ratings, and countless minutiae;
and never one, Not One, direct notice about the cost of accruing cancellations, and the very low numbers involved in being 'penalized'.
2) And if they put all sorts of information about shipping time and feedback on our main seller page - keeping calculations and percentages, falsely designed to look of primary importance, right in front of us;
and then kept any mention of cancellation history 2 pages away, with Zero warnings or notices that directly addressed cancellations (so why worry anyway?).
3) And if they then continued to glad-hand people about cancellations - "Thank you for your cancellation!" "Thank you, we'll take it from here!" "Thanks for using eBay!" -
Without Any mention of a cancellation count, or Anything about the cost they're about to charge you.
(As I recall, first ebay notice about the extra 4% fee was first sent out about 4 months prior to implementation.)

Well, if they did all those things, and they certainly did, they had to have been planning on their ambush for some time - a sudden windfall of 4-5% extra profit from tens of thousands of sellers, many lulled into complacency by a lack of any guilt, and a suspicious lack of any notifications from ebay.
** Consider this clincher: ebay had a target percentage for sellers to stay under (Changeling says 1%, I heard .5%), but they let those sellers cancellation percentage get to 2 or 3 times their target, Without Saying A Word About The Target. **
Ebay?! Not say anything about a seller crossing the line?! Not say anything? WHat?
**Sellers were not notified about an impending penalty fee, until they were deep enough to be locked in for years.**
They might be informed that their current rate is 2.5%, and they shouldn't have let it get above 1%, so now they'll be penalized until they get down to what are highly unreasonable target numbers for any kind of specialty store. (300 x .001 = 3 sales) Only 3 sales? When selling fine instruments, old photo equipment, vintage military... these are not stores that stock items in multiples, so cancels are not going to be an issue of 'in stock'. If something happens to one of Changling's guitars in storage, and it sells, he will have to deal with that. That should not be a penalty, when the seller is not taking an advantage, but is actually losing one.
When 1 or 2 inevitable cancellations a year get added to a seller's backlog, that person can be locked in for 2 years or more of a 4-5% profit loss. And if they slow their selling rate, possibly out of frustration and depression at the constant Below Standard sign that now adorns their store - their selling percentage will only get worse! And what have they done wrong?
Many of them just fell into Ebay's trap.
I feel ya, Changling93305.
Cheers/

P.S. There are unfortunately, too many ebay forum members whose purpose seems to be to defend ebay against any charge, without compromise. They insist they are being helpful, but all they do is tell the OP that their complaint has no merit, because.... rules & regulations, no exceptions allowed.
Sellers come to these forums for help, and the bums rush of holier-than-thou responses that many get almost immediately, is a real turn-off. A reason to stay away, altogether. It is not helpful to tell a seller with a reasonable complaint that 'they should have read the fine print'.
Most likely an unhelpful respondent doesn't read all the fine print either. But the number who claim to know better, and who dismiss an individual's case as fast as they can type, is way too high on the ebay forums. Perhaps they are paid to drive complainants away, scarecrows for the ebay corn...

Predictably, most have never even been sellers. They have no experience selling, but they are available to judge sellers. if a respondent tells you that you should have known the rules, and that your special case is no exception at all, chances are excellent that they do not sell. That they have never been sellers. Yes.
They'll say that they have a 'separate account for selling', but there's never a Seller ID history that shows that, and they won't provide one....
So don't let the naysayers and the boo-birds get you down, Changeling. They have little to offer - it's their personal trip.
You were done wrong, because no one could be bothered to do the right thing.
(BTW, thank you for your measured analysis of how it all went down. Very cool customer.)
Message 18 of 19
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Re: Need insight on whether to delete my seller account or not , detailed scenario

Hello Everyone,

 

Due to the age of the thread, it has been closed to further replies.  Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

 

Thanks for understanding!

Message 19 of 19
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