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.
... View more