eBay Mandatory Managed Returns Price Increase

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Managed Returns lgeBay have announced that the will rise to a minimum of £2.99 (incl. VAT) from the 30th of March this year. Previously the minimum charge sellers incurred when a buyer decided to return an item was £2.78.

This is the cost of Royal Mail Tracked 48 and the price hike is as a result of Royal Mail’s annual price changes.

Unfortunately there’s no way around this price increase, it’s part and parcel of the mandatory Managed Returns process on eBay. The only thing that you can do is to tot up the percentage of returns you receive over the course of a year, divide by the number of total sales and build the cost into your prices.

21 Responses

  1. Strange Royal Mail’s communications said most prices changing by 1-2% only, and this represents a whopping 7.5% increase. Who is fooling who?

    Incidentally, on OBAs Royal Mail continue to charge a fuel surcharge on the grounds the competitors do it, but I don’t see My Hermes doing this or any of the agencies like Parcelmonkey, Parcel2Go, Interparcel etc. In addition the surcharge rate hasn’t changed despite the drop I fuel costs.

  2. ~
    eBay are still on the make.

    And they continue to poke the finger at buyers and sellers of small items.

  3. “Unfortunately there’s no way around this price increase, it’s part and parcel of the mandatory Managed Returns process on eBay. ”

    – in other words

    “its highly illegal anti-trust corporate monopoly profiteering”

  4. You could provide your own returns label and have the item returned standard 2nd class.

  5. “Unfortunately there’s no way around this price increase, it’s part and parcel of the mandatory Managed Returns process on eBay. ”

    Or you could set up a returns contract directly with Royal Mail at £2.14.

  6. This micro management of OUR businesses is another incentive to try make sales direct through PayPal. For my luxury goods most seasoned buyers are willing to pay direct as they know they can save at least the ebay fee on the price. This is how ebay failed in china is it not? Not letting folk do business how they want. The only difference is there is no ebay competitor in the UK, not for small sellers of used goods anyway.

  7. We didn’t opt in to the managed returns process and continue to refund buyers return costs via paypal manually if needed. Do you regret opting in now.!

  8. eBay continue to trot out the line ‘we don’t make any profit on managed returns’ yet the increase announced is far more than the actual price increases by RM.

  9. eBay keep telling us we should offer free postage to our customers as that’s what customers want. I want them to give us as customers free postage too, but it seems that eBay have suddenly realised that postage costs money and isn’t actually free…

    Incidentally Tracked Returns is a contract service and the price doesn’t go up when Royal Mail’s prices increase. They will have a contract review date and if they they are returning enough, any increase would be minimal and if they are exceeding their targets they will get a reduction. In any event the price that eBay are charging is substantially higher that our contract for our small two person business and I find it hard to believe that we could negotiate a better deal than eBay… They can only be profiteering.

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