How to avoid high returns rate and defects rate on eBay

eBay’s updates about returns rate and how to avoid defects in your eBay account are the two topics that concern eBay sellers the most. We spoke with the eBay Dropshipping expert, Ilia Rozman, who has clarified our doubts concerning these two issues.

eBay Returns Rate Update

The eBay October’s 2018 update regarding the returns rate has confused most store owners in eBay.
But what is actually the returns rate?

So, here is what happened. eBay has started to monitor and measure the sellers’ efficiency.
Anything not corrected by the seller, on eBay will be factored in the return rate.
For example, in the past, eBay did not check the returns level or the feedbacks of any store owner.
From now on, these two factors are essential.

We had a small conversation with Ilia Rozman who is a Dropshipping expert on this eBay update.
We thought that it would be critical to update you regarding these changes, so we decided to ask Ilia about them.

Here is what Ilia had to say about the update:

1. What is the purpose of this update?

Ilia: We all know that eBay has started accepting returns from buyers, automatically, so I wanted to find a
solution to this high returns rate.

2. Why is the automatic return important?

Ilia: eBay is focused on customer satisfaction, hence, an automatic return is our way of showing that the customers are our priority. We wanted to give them options for returning their items without needing prior approval, which is definitely a faster way.

3. What solution did you guys come up with?

Ilia: The eBay returns rate solution is better only for the cheaper items. The sellers are our stakeholders too and
we wanted to assure that the buyer is serious about returning the item. We worked on a trial run for a few
months and it went well.

4. How does it work?

Ilia: If you get a message from the buyer that there is something wrong with the item, you simply tell them
that you’re here to help. You send the return label and send a message to the buyer without having him/
her opening a return request, which is a long procedure. The label can easily be tracked and once the item is
returned, you refund the amount via PayPal. Hence, the return rate is not affected for the seller, but at the
same time, the buyer is satisfied.

5. Any precautions that you would suggest for the sellers?

Ilia: You must make sure that you use this method only when you are positive that the buyer will return
the item. Also, we do not recommend its use in case of high priced items as that is where you would like
eBay to cover, which is better for you. Hence, upon your jurisdiction, you can use the conventional return
rate path too.

How to avoid defects in your eBay account?

Most eBay users are not aware of the defect rate and it is one of the first things that play a negative effect for an eBay Dropshipping business.
It’s a factor that may even send your store to below standard rating, which will eventually lead to a loss in sales.
It is, also, very difficult to get back the Top Rated badge once you have been pushed down to the bottom.

Let’s ask Ilia how to deal with this problem.

6. How to manage the defect rate on eBay?

Ilia: As a service provider to eBay, we’re constantly coming up with solutions to fix things on the inside.
Every day, we come across users making a lot of mistakes so, I hope this answer helps the eBay community on the whole.
Whenever a buyer orders any item from your eBay shop, but you are unable to order the same from the supplier (due to price or stock change), never choose to cancel the order by yourself.
It will lead to a high jump in your defect rate. Simply do not cancel yourself.
Let the customer cancel it due to delay or let eBay handle the situation.

NOTE FROM LIOR: I suggest to use these methods only for cheap products, and not for the 100% of the cases, because when you do the refund directly from PayPal, you will not get the ebay fees back.
This means that you will eventually lose some money on each return by using this method.
Sometimes, however,  it’s still worth it, to avoid a high returns rate on eBay.

Watch the video from the Interview

You can watch the interview with Ilia, on our YouTube channel, and find out more information on how to avoid high return and defects rate.


We hope Ilia Rozman’s answers will help you run your eBay dropshipping business efficiently and avoid getting high returns and defect rates in your store.

Comment down below, and let us know if anything else concerns you so we can write more interesting dropshipping articles.

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