Updates to eBay Feedback Policies May Impact Your Dropship Business
Posted by J. J. Whitley on Thu, Oct 21, 2010 @ 10:13 AM
If you have an eBay dropship sales business, you may be affected by the newest updates to the feedback policy.
eBay has made so very many changes during the past 3 years that it is growing increasingly difficult to keep up with them all. Unlike the other changes up to this point, however, this one might actually help sellers a teeny bit.
On the other hand........
Let’s look at the new feedback policy change to see what it really is. Straight from eBay:
“Updates to Feedback
When we know you delivered fast and free shipping on a transaction, we’ll make sure your rating reflects that. We’ll also make it easy to report your experience with the buyer to eBay, and let you know what we did with that information.
Automatic 5-star DSRs for free and fast shipping:
As of August 24, when you offer and your buyer chooses free shipping, eBay will automatically rate the transaction with 5 stars for shipping cost.
Starting in November, when you specify 1-day handling time, upload tracking information by the end of the next business day after the buyer’s payment clears, and we know your package arrived within 4 business days from when the buyer pays (or arrived by your estimated delivery if that was earlier), eBay will automatically rate the transaction with 5 stars for shipping time.”
Okay.
To sum it up, if you offer free shipping for your dropship sales products listed on eBay, you automatically receive a “5” on your Detailed Sellers ratings for “Shipping Cost.”
This is good. But, as is usual with the rare “gifts” from eBay for sellers; this is something of a Trojan horse.
Why?
Because while it will assure you of the highest DSRs in Shipping Cost, it will also mean that you will have to factor the shipping cost into the price of the item.
Is this good for you? Possibly not. Many buyers won’t notice the free shipping when scanning the listings; they’ll notice the lowest price of the widget.
Is it good for eBay?
Of course! It’s a win-win situation for eBay! Think about it: if you sell an item for $20 and charge $5 shipping, you will pay eBay Final Value Fees on that twenty bucks. But if you add shipping cost into the price of the item in order to offer free shipping, you will pay eBay Final Value Fees on $25 instead of $20.
Presto! Just like that---eBay has collected fees on another five dollars.
So, what you will have to ask yourself is this: Is it worth it to you to pay extra fees in order to get a “5” DSR in Shipping Cost? Or not?
This is a decision you will need to think about for your dropship sales business on eBay.
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If you liked this article, you may also like this one:
How to Receive Better eBay Feedback