eBay

vssoutlet · ‎09-08-2020

Today I received a message from eBay that is among the most offensive I have gotten in my 25 year seller history:

Your funds are on hold until this request is resolved

Request ID: xxxxx

Hi John,

We'd previously contacted you about a return request that BUYER filed for an order placed on Sep 01, 2020.

Until the request is resolved, the transaction amount will be withheld from future payouts.

I called eBay. For background, I am a TRS with a perfect record of honoring returns. Apparently, all sellers on the Managed Payments program that eBay has forced us to use will have funds withheld the moment a buyer opens up a return. Not a claim, just a return.

Aside from being insulting, here is how this policy can do severe damage to your business:

You sell a $7,500 Rolex watch to someone in Australia. They start a return. $7,500 is frozen in your account. 1) They could fail to return the watch and during that entire period, your money is on hold. 2) It could take up to 60 days to go through the process and receive the item back (it's unusual, but it's happened to me on international returns) 3) The return could be fraudulent. Good luck getting the funds released.

If you don't have the $7,500 in your MP account, eBay will just keep withholding money from each sale until they have $7,500. I don't know if they can hit your bank account for it.

This policy is ridiculous because all returns are theoretical until the item is, in fact, returned. PayPal never withheld a dime in advance for sellers with excellent customer service histories.

If you agree that this policy is insulting and potentially dangerous, please contact eBay and let them know.

vssoutlet · ‎09-11-2020

@corvettestainless

I understand that, for now, this is how it works. However, Ayden answers to eBay. Ayden is also the payment processor for Etsy and I don't get any money withheld when I get returns there. If this policy drives people off of eBay, it's eBay's problem. And I believe that has happened and will continue to happen. Do you honestly believe that eBay answers to Ayden?

eBay has tons of reputation data on its sellers. They could very easily forward that data to Ayden (and probably have) to make policy decisions. I'm sure that the fact that they get to earn interest on the float from holding hundreds of millions of seller-earned dollars awaiting possible buyer returns has factored into that decision. If enough large sellers complain, maybe they will change their policy. It's happened before. PayPal made intelligent decisions based on seller reputation. As a result, they are so large and so profitable that they could buy Ayden out of their petty cash fund.

Anonymous · ‎12-17-2020

I'm having the same problem, but there's been no help from ebay. Either here on this forum or on the phone.

Withholding the funds means the deposits I post do not match with the amount sent to the bank, and these numbers HAVE to match. A deposit and a refund that are processed THE SAME DAY, if that equals the payout, then that's fine but that's not going to happen. I've got one now I can't post in my accounting system because they've withheld funds from a payment. That won't match what I post in my accounting system. That means I can't reconcile the bank statement because there's no way to know when the returned part will arrive so I can give a refund.

Ebay needs to stop withholding the funds. If there's going to be a return, the funds would be drawn from the connected bank account.

Anonymous · ‎12-17-2020

I just spoke with eBay. I was told to leave feedback on the eBay site on the Payments page. I just wrote in my situation about their withholding funds on a return, and if enough people complain about it, maybe eBay will fix it.

kds99 · ‎12-17-2020

Incorrect in my situation. I received the same email but there was no action for me as the seller to take. eBay had already approved the return request before I was even notified of it. No action for me to take except refund now or wait until I receive the returned item. Now I see the seller has created the return shipping label a few days ago, but has not yet made the trip to the post office. This could be interesting!

boutiquepandora · ‎01-12-2021

Hi. I received exact same email and I declined return because buyer wanted to return it just because she didn’t like it and nothing was wrong with the item. It’s been few days after the return case closed and they still haven’t sent payout. How long did it take for you to receive money after you resolved problem with buyer(or closed return case)? I’d appreciate if you could give me an idea how many days I should wait. Thank you!

no_zero369 · ‎01-12-2021

@vssoutlet wrote:
@3eyedfishcatcher

I don't understand why eBay can't just withdraw money from the linked checking account when it is due to be paid. I have no problem with that. Additionally, if they are locking up funds as they come in, to pay for the return, what happens if, in this example, the $7,500 hasn't yet been accrued? Does your MP account go into a deficit or do they then reach into your bank account?

The major issue I have with the current policy is that is locks up funds that are not yet due. I've had many buyers over the years, start a return and never return the item. I've had foreign returns take up to 60 days to complete. Unless eBay dramatically changes it's policy, funds are not due to the buyer until the return is complete (the item has been shown via tracking to have been delivered back to the seller. Until this happens, the money isn't due and eBay should not be entitled to lock it up - particularly when it comes to sellers with a multi-year history of integrity on the platform.

Sounds like a change in business plan might be in order? Hold the funds in your account linked to MP until whatever return period is allowed. I never spend a dime until the MBG expires, so a lock up is never a problem.

I think too many sellers think they have some level of cache with eBay because of their tenure or record. Unless one can make such an argument to a person in eBay that cares, I doubt that is a winning position. Frustrating - yes. Right way to treat people - No. But apparently eBay's view of even handed application of the rules. Sigh

mars364 · ‎03-03-2021

Been there, and done that....contacted ebay for numerous reasons including one such as yours above....EBAY DOESN'T CARE ABOUT THEIR SELLERS. As a long time seller, you know ebay cares only about the money.

Anonymous · ‎03-09-2021

All returns starts with this sentence. Whether they have or not contacted you beforehand. I know cause I just had a buyer open request and it states same thing and I contacted Ebay as was confused. They said no they had not contacted me in regards to item. So them to say that is fraudulent on their end in my opinion.

isail7c · ‎09-09-2021

Ebay member since 2000 mostly as a buyer but after using Ebay as a seller and learning of the new hold funds policy (that was barely coherently explained by an Ebay rep on the phone) I will never sell another item on Ebay again. I was used to the PayPal days. This new policy stinks and to have the phone rep try and tell me its in my own favor to have the funds on hold was laughable. Someone in Silicon Valley needs to dream up a new marketplace concept and put greedy Ebay out of business!