Stealth eBay Policy Update Allows Buyers To Get Advance Refunds On Returns
UPDATE 5-26-25
While eBay has never confirmed if this stealth change in return policies was part of a Trust Buyer program, it appears that they may be expanding the scenarios in which buyers are provided advance refunds on returns with new reports in the eBay community cropping up in the last few weeks from sellers encountering it for the first time.
The timing of a refund
As a seller I understand that in the event of a return I have to refund once the package is back to me. As a TRS+ I also have the option of certain deductions if it is returned “Not in original salable condition”. Seems reasonable.
BUT I now have a package I am returning as a buyer and I am advised that as soon as the package is scanned as received by the post office I will get my refund. Understand that as a buyer I am happy to get the refund much quicker without having to depend on the seller to follow through.
But why the 2 different procedures?
Sellers on Reddit are also seeing an uptick in returns offering Advance Refunds to their buyers, with some expressing concerns about will happen if a different item is returned or the item is broken or damaged.
eBay Refunding Buyers in Advance?
by u/AmeriC0N in Flipping
As a Top Rated seller this is the first time I'm seeing the Refund (eBay Advance) Anyone else?
Buyer requested return for "just didn't like it", it was auto approved due my settings, and I received the buyer shipped back return notice same day. No problem there.
What concerns me is eBay refunding the buyer in advance? What happens if I need to make a refund deduction when it arrives? What if it doesn't arrive at all?
I do have another open return from another customer with the same return reason. But, theirs has no advance eBay refund. Perhaps it's since they haven't yet shipped out the return?
eBay says that seller protections still apply, so in theory they should still be able to deduct up to 50% if an item is used or damaged by the buyer, but it's not clear if that is how it actually works in practice and eBay has not provided any additional details on this policy since it first went into effect last year.
If you're a seller who has encountered advance refunds on returns, I'd love to hear about your experience and whether eBay allowed you the option to still deduct from the refund after delivery - leave a comment below or contact VAR!
eBay has quietly updated their refund policies to allow some buyers to get advance refunds before sellers receive returns as questions remain about existence of a Trusted Buyer program.
Sellers have been perplexed by recent experiences that seemingly provide certain buyers with perks like circumventing seller selected immediate payment required settings.
Liz Morton
The existence of such a program was further bolstered by an eBay survey sent to buyers about possible changes to allow free returns for any reason for auto parts and accessories - including a specific reference to Trusted Buyers being provided a full credit by eBay as soon as they open their return instead of having to wait for the seller to receive the item back and initiate a refund.
Liz Morton
That survey made it sound like the possibility of advance refunds for returns was just a hypothetical perk, still under consideration but not actually implemented, but a post in the eBay community shows such refunds are already a reality in other categories.
Has Ebay always provided a refund to the buyer before the item even gets back to the seller?
I am the seller, and I accept returns. I have an item coming back to me due to fit. The buyer just shipped it and it seems like once it got the USPS acceptance scan, Ebay gave the buyer their refund. Baffling. I didn't authorize the refund because I don't have it back yet.
The seller later added the item was listed in clothing, not parts and accessories, confirming that this policy update may impact sellers outside of Motors categories.
It's also important to note a return due to fit would be considered a buyer remorse return reason and the seller properly accepted the return, so this would not be a scenario where a forced refund due to eBay Money Back Guarantee claim or chargeback would be in play.
Instead it appears eBay has simply taken it upon themselves to provide an upfront refund to the buyer with no prior notice to or input from the seller.
Digging deeper reveals eBay made a stealth change to their refund policies sometime in the last few months to allow for this possibility, without any announcement.
Here's what eBay's Refunding Buyers policy page looked like on April 9, 2024, according to the Internet Archive Wayback Machine:
And here's what the same page looks like today, August 23, 2024:
Unfortunately, April was the last archive of this page, so it's impossible to know exactly when it changed, but since we are just now starting to see reports from sellers about it, it's likely a much more recent update within the last month or so.
eBay says this change will not impact seller protections, so in theory sellers should still be able to deduct up to 50% if an item is used or damaged by the buyer and should still have neutral and negative feedback removed if they choose to deduct from the refund for that reason.
However, it's not clear how that will actually work in practice.
If the buyer is provided a full refund in advance and the seller completes the process with an allowed deduction once the item is actually received, does eBay let that buyer keep the full amount and just eat the difference themselves or will that difference be taken back from the buyer?
If it is taken back from the buyer, that sounds like a recipe for all kinds of problems, including possibly running afoul of consumer protection laws and regulations and most certainly increasing chargebacks claiming unauthorized charges.
So far eBay has not responded to requests for comment about the existence of a Trusted Buyer program, what the criteria may be for buyers to be included, and how eBay is making sure those buyers do not abuse the program or circumvent seller policies.
If this truly is a new program, eBay is likely saving the announcement for a Fall Seller Update or the eBay Open 2024 virtual seller conference.
Stay tuned for updates and in the meantime, let us know in the comments below if you've seen eBay providing advance refunds on returns to any of your buyers!
Concerned
