The eBay Seller Release (continued): An Important Update About Refunds

May 21, 2014

Much has been made over the new eBay Defect Rate. It was the centrepiece of the changes introduced in eBay’s Seller Release (SR14.1) back in March, because it realigned the metrics used to determine a seller’s status into one measurement.

EBaySo far, we’ve tried to keep you informed of the changes and their implications through blog posts, webinars, additional blog posts and updates. But we’re happy to inform you that we decided to take it one step further and do some of the critical work for you.

Because a refund for a returned item that is submitted without a dispute — or case — will now result in a defect, the ChannelAdvisor platform will begin automatically creating eBay disputes for certain refunds submitted to ChannelAdvisor for eBay transactions. The transactions must meet the following criteria:

1. The order has been marked as shipped by the seller.

2. The refund submitted is at least 100% of item value.

3. No previous disputes have been submitted for the transaction.

This change will go into effect on Wednesday, May 21, 2014 and will be retroactive for refunds submitted since May 1, 2014.

As we detailed previously, eBay’s defect calculation currently considers refunds for shipped items as “seller-cancelled” due to being out of stock if eBay is not otherwise notified of the refund. Therefore, to protect your seller status, it’s important to notify eBay, via a dispute, that a refund is coming.

With our platform update, we have automated this manual process on your behalf and will now initiate a dispute before you get into a situation that can ultimately hurt your reputation on eBay.

As partial refunds do not count as “seller-cancelled” transactions, disputes will not be created in these cases. We’ll keep you updated if this policy changes.

ChannelAdvisor continues to be committed to providing best-in-class solutions to help sellers manage these types of changes. Please contact ChannelAdvisor Customer Support with any additional questions.