eBay have announced that from the Autumn all sellers will need to specify a returns policy in their listings. Sellers will have to offer a minimum of 14 days as the period in which the buyer can cancel the transaction and get their money back as well as specify who pays the return carriage – the buyer or the seller.
Sellers are only just starting to realise however that the new returns requirements will apply not only to fixed price listings but also to auctions. There are also questions as to whether returns have to be offered for overseas sales
There has been a long running argument as to whether auctions fall under the distance selling regulations including various court cases over the years. Personally I’ve never worried about the semantics of whether an eBay “auction-style” listing is in the eyes of the law an “auction” or not an “auction”. If you have confidence in your products and services why would you offer returns for your fixed price listings but not for your auction style listings?
To put the matter to bed once and for all however, the latest EU Directive differentiates between public auctions and online marketplace auction-style listings. It specifically states “The use of online platforms for auction purposes which are at the disposal of consumers and traders should not be considered as a public auction within the meaning of this Directive.” In other words an eBay auction-style listing is NOT an auction and yes you do have to offer returns.
Business sellers will be required to offer returns on auctions from Autumn this year, the “No returns accepted” field will no longer be available unless you’re listing in exception categories (Custom-made products, Foodstuffs, Perishable goods, Real Estate, Tickets/ Travel, Business Industrial).
eBay leave international returns a little ambiguous saying “You should make any international returns information clear in your free text on returns”. However it’s worth noting that within the EU buyers have the same returns rights as within the UK, the latest EU Directive lays out your responsibilities.
14 Responses
Sellers are being pushed to give free shipping and now 14 days refunds on auctions. Although most business sellers would refund within 60 days to avoid bad feedback. Ebay remains the on market place we can auction an item reselling for 18 pound for 2, and find the only person. To complain about quality or similar to be the eBay 2 quidder. Ebay won’t drive traffic to smaller independent sellers any more and chooses drive the majority of it traffic to large retailers.
With the type of platform ebay is and the type of customer, service and pricing it demands, I think a lot of smaller independent retailers that have been high value quality proposition are focusing there efforts and money elsewhere and seeing good results.
Whilst still on ebay their main focus is not in ebay and expansion of lines to suit ebay.
With this is mind its no wonder ebay missed its earnings forcast and shares are down some 7%.
Although many have also missed for casts. Maybe it’s time ebay focused again on the principles that saw massive growth of the site in the first place.
It really isn’t anything very new. The law has stated for a long time sellers are obliged to accept returns within the cooling off period for Distance Selling. All ebay are doing it is codifying it into their User Agreement. Shame on sellers who say “no returns”. They are simply breaking the law and ebay should have removed any such sale years ago.
“The use of online platforms for auction purposes which are at the disposal of consumers and traders should not be considered as a public auction within the meaning of this Directive.” In other words an eBay auction-style listing is NOT an auction and yes you do have to offer returns.”
The directive does not say that an ebay “auction style” listing is NOT an auction. It does say that it is not a “public auction”
Remember many “public auction” sales offer internet bidding. How is bidding on ebay any different from internet bidding for items in a “public auction”?
Excepted contracts are sales concluded at an auction. It does not say whether this is public or private and on this basis ebay should not be obliging sellers to offer returns for auctions.
What ebay should do is make it very clear that buyers and bidders on their auctions waive their rights of return.
This may make BIN sales more attractive.
I thought the DSR said the return period is 7 working days? ie cooling off period. Not 14 days. Why is ebay enforcing that?
I don’t understand why this is confusing. Ebay auction-style listings are clearly not “auctions” within the meaning of the regulations.
The key difference is not merely the lack of an ability to inspect pre-sale, it is the absence of an auctioneer.
In an internet auction, the auctioneer is conducting the sale, and they have had sight of the goods and vouch for the accuracy of the description. This does not happen on ebay.