Ebay backs down over forcing free P&P from sellers

Much to the indignation of sellers, Ebay introduced a free postage and packaging requirement in 2009 in several categories including accessories and media. Ebay said this was because most online retailers offer free P&P, and buyers now expect it.

However, sellers didn't agree, especially those selling products in auctions with low starting prices.

The move was initially put in place to prevent sellers charging over-inflated shipping costs to offset low item prices. This shady practice helps sellers avoid them paying such a large Final Value Fee to Ebay.

Ebay has now back-tracked on its policy, and from February 8th, it will remove the free P&P requirement and replace it with maximum limits to charges.

Ebay is also making two other significant changes in April. One is that it will lower the sales level to enter the PowerSeller scheme. This will mean more sellers that provide excellent service will be rewarded with benefits and discounts.

The second change is that the "minimum performance standard for selling on eBay will be raised to ensure a consistently high level of service across the marketplace". Sellers who fall below these standards will have their listings demoted in searches and will have restrictions placed on their selling activity.

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