The smaller side of no return of fees

[PanStone]

I just learned today that PayPal no longer refunds their fees on refunds.  Between eBay and PayPal, they are killing the small business.  When we first started selling on eBay, we had complete control on when and how much to refund.  If we made a mistake, we cover all additional costs in making it right.  However, if the buyer ordered wrong or changed their mind, then they should be responsible for shipping costs and restocking fees (overhead).  Slowly, eBay started taking away our control.  First, they "forced" us to offer free shipping.  Then, we couldn't deduct for shipping that was free.  Then we could no longer charge a restocking fee.

We are a small business that sells automotive parts.  Buyers quite often don't read what they are buying and purchase the wrong item.  Also, frequently it happens that they discover their vehicle is too far gone and no longer need the part.  Every time a buyer returns a part and is given a full refund, we are negative the shipping and the overhead (and let's not even talk about the times the buyer lies about the item and we have to pay return shipment as well).  Now, kicking us while we're down, PayPal is keeping the fees they charge us for the transaction. A transaction that has been voided/reversed.  We have to give the money back.  Why shouldn't they?  Why should they make money when we didn't?  They get a percentage of the sale.  If the sale no longer exists what are they getting paid for?

 Both eBay and PayPal want us to be so willing to accept returns.  If they want to be so open with accepting returns, then they should make it easier on us. Most of the returns through eBay we don't even have a say in.  We're just informed it's on it's way back.  So, eBay is all open and accepting of any and all returns (after all, it doesn't cost them anything), and with every return PayPal makes a profit for doing nothing.  It's really starting to feel like we are just pawns making them money at our expense.  They are nickel and dime-ing us to death and they give us no choice but to do it their way or not at all.

I think we are going to start moving all our inventory over to Amazon.

[sharpiemarker · Accepted solution]

@PanStone 

PayPal provides payment processing services, whether they receive payments for you or you put through a refund. That is what we are paying for. Not saying I am a fan of this policy but I understand it and adapt. We have been spoiled all these years whereas merchant credit card processing services do not really refund the fees for the longest. Do a web search on that. Maybe you can find one that does refund the fees and move on to accept payments with them. Make your own online shop if you want more control. Selling auto parts is like selling clothing. If it don't fit, people return, so its high risk. Comes with the territory. You can self-insure, take a percentage from each sale to put to the side to cover the expense.

PayPal getting kicked to the curb too by eBay with their Managed Payments system so they have to make up the loss some other way or should they raise the fees? Ohhh, nah, nah, nah, we don't want that! lol

[PanStone]

Who gets to mark this as solved??  I thought that was up to the person with the original post.  Since I put the problem out there, shouldn't I be the one who decides if it's solved or not?  Otherwise, anyone can answer and say solved.  Something definitely wrong here.

Back to my original post and your reply: Today someone placed an order and then turned around and cancelled it.  We did nothing, PayPal did nothing, yet we are out $9.50.  It may be a small amount, but it adds up.  Specially to a small business.  It just doesn't seem fair that we should have to pay because someone changed their mind or made a mistake.

And I am well aware, I can go somewhere else.  I already mentioned Amazon. It's just too bad that after 12 years, we are being pushed away.

[PanStone]

And, I'm sorry, but selling auto parts is nothing like selling clothing.  A medium t-shirt can fit differently depending on the manufacturer and no two bodies are really the same.  There is no varying in the size of a part no matter who makes it and thousands of vehicles are exactly the same.

[PanStone]

If it was a processing fee then it should be a flat fee for every transaction.  But it's not.  It's a percentage of a sale.   And as a percentage of the sale, when the sale is refunded so should the fee.  100% of nothing is still nothing.  They already keep a $0.30 transaction fee.  Which for the number of transactions they process in a day, I'm sure adds up to a heck of a lot more than we see in a year or 5 or, quite possibly, more than we've ever seen...

It's just that 12 years ago we saw PayPal as an ally.  We're starting to feel like they're not so much on our side anymore.