eBay introduces new buyer protection services, but Parcelhero warns they come at a price

The online market place eBay launched its compulsory new Buyer Protection scheme over the weekend. It introduces new 24/7 support for shoppers buying from private sellers and ensures customers won’t part with their money until their items have been successfully delivered.

That’s the good news, says the delivery expert Parcelhero.

The bad news is that there’s an added charge for this new protection, and the additional fees could tot up to a maximum of £86.75.

Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., said, ‘It’s great that eBay users can now enjoy the kind of protections when purchasing from private sellers that they already enjoy when buying from businesses. But this additional security comes at a price. With the new compulsory fees being introduced within months of eBay’s private sellers fees being dropped, the question has to be asked: “Have shoppers been left to foot the bill?”

‘There’s no doubt these new eBay protections are worthwhile. Best of all is the new  24/7 customer support. Buyers can connect anytime with a person by phone or send a Chat during office hours to get quick answers. The fact that payment to private sellers is only sent after a shopper’s order has been successfully delivered is also very reassuring. But all of this added security has a price tag – and buyers can’t opt out.

‘The new Buyer Protection fee is calculated as:

• A flat fee of £0.75 per item, and
• 4% of the item price up to £300, and
• 2% of any portion of the item price from £300 to £4,000

‘In practice, what does that mean for shoppers? Well, if an item’s price is set at £20 by a private seller, an additional 80p plus 75p flat-fee is added automatically, so that the price that the customer sees in the listing is now £21.55.

‘That sounds pretty fair for this added protection. However, as the value of items increases, so do the new fees. For example, on an item with a price set by the seller of £500, the variable protection fee soars to £16, plus the flat flee of 75p. So that the price the buyer sees for the listing has shot up to £516.75. If we take that up to the maximum of £4,000, then the variable fee tops out at an additional £86 plus the 75p flat fee… and postage. That’s a chunk of money.

‘However, things are not quite as wallet-draining as they may appear. Any portion of an item’s price over £4,000 won’t incur any additional fee. And there are exceptions to the new fees that are welcome news. The charge excludes vehicles, Classified Ads and property sold on the site. That’s because these purchases are not covered by the scheme.

‘More good news is that, when purchasing multiple quantities within a listing, the flat fee of £0.75 is only charged once. That’s great as that kind of cumulative fee could soon mount up on quantity orders.

‘It is perhaps telling that these changes are happening just four months after eBay scrapped its fees for private sellers. It’s certainly interesting timing. In fact, eBay itself links the two. Its website says: “We’ve made it free to sell for private sellers, so it’s easier than ever for more sellers to bring you a wider variety of things you love. To support this change, we will charge a buyer fee to cover Buyer Protection services and ensure a trusted experience when purchasing items from private sellers.”

‘That word “support” is doing a lot of heavy lifting.  It may just mean supporting the overall customer experience but it may also imply supporting the change financially.

‘Customers may be wondering why the new fees don’t apply to business sellers but, in fact, their sales are already supported by similar protections. The new scheme also doesn’t change eBay’s existing money-back guarantees and authenticity guarantee.

‘The question of whether protection should be completely free is interesting. For example, Parcelhero offers £50 free Parcel Protection as standard on the majority of its services, and customers can purchase additional parcel delivery protection options if they are sending higher-value items that require additional protection against loss or damage. Other online sales platforms also offer cover. For example, Amazon has its A-Z Guarantee for guaranteed moneyback on items bought from its marketplace sellers, providing certain criteria are met.

‘Our conclusion is that eBay’s new Buyer Protection service is great value for typical purchases of £20 or so. But for big ticket items, shoppers may notice the new compulsory fees.