eBay introduces new Vinted-style buyer protection fee

Ecommerce giant, eBay first announced that it was removing selling fees last October, aiming to attract more small businesses and side hustlers to the platform.

eBay is a popular choice for side hustlers because it’s a quick and easy way to start a business and connect with buyers worldwide with little upfront cost.

At the time, we predicted that eBay would follow in the footsteps of platforms like Vinted and Depop by introducing a buyer fee. Our crystal ball was right.

Earlier this week, the platform confirmed it will roll out a new ‘buyer protection fee’ from February 4th.

What is a buyer protection fee?

A buyer protection fee is a charge that applies to transactions to cover the cost of buyer protection services. This fee helps ensure that if a buyer doesn’t receive an item as described, the item is damaged or ends up lost in transit, they can get a refund or a resolution. 

If you’re running an eBay business, this can help create safer and more trusted transactions. Buyers are given peace of mind, knowing they can be reimbursed if something goes wrong, in turn reducing the risk of disputes, chargebacks or negative customer feedback.

However, the buyer protection fee is usually added onto a product’s overall pricing, meaning that it can affect SME pricing strategies dramatically.

The fee is typically a small percentage of the total purchase price and is meant to cover the administrative costs of handling disputes and claims. For eBay specifically, buyers will pay up to 4% of the item price, plus 75p, if they purchase items from a private seller.

The fee is lower for items priced over £300, and there’s also a cap on the total amount that buyers will have to pay.

What else has changed?

In a blow for SMEs, the platform has also announced that private sellers will only receive payment once the item has been delivered to the customer.

Previously, sellers would receive payouts within 1-3 business days, so the delayed payment could significantly impact cash flow, especially for those who rely on quick turnover of funds to reinvest in new inventory or cover operational costs.

More positively, however, eBay has also upped its customer service efforts for sellers with 24/7 support, allowing them to connect with a representative via the phone or through a live chat.

It’s also been reported that eBay will offer certain promotional opportunities exclusively to business sellers on the platform, though further details haven’t yet been released.

How expensive is eBay to sell on?

The buyer protection fee is a mixed bag for those who sell on the platform. On the one hand, it could dissuade buyers by forcing sellers to up their prices to cover the new cost.

However, eBay also likely introduced it to attract more sellers by creating a safer and more trustworthy marketplace, which could bring more custom to the platform if buyers feel more reassured that their payments are protected.

The policy is similar to other resale platforms, such as Vinted and Depop, which have already introduced buyer protection fees. But how does it affect eBay’s overall selling costs?

Here’s what we found when comparing eBay’s prices to the likes of Amazon, Vinted, Depop and Etsy.