Money Moral Dilemma: Should I refund the postage fee?

MSE_Sarah wrote: »

This week's MoneySaver who wants advice asks...

I recently sold something on eBay and the buyer paid for postage. When I saw their address, I realised they lived around the corner from me so I might as well hand-deliver the item. Should I refund the postage cost or keep it?

Unfortunately the MSE team can't always answer money moral dilemma questions as contributions are often emailed in or suggested in person. They are intended to be enjoyed as a point of debate and discussed at face value.

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If you hand deliver an item you are not covered under "seller protection". Just a warning should anything go wrong - eg if the buyer claims they didn't receive it.

catswiththumbs wrote: »

If you hand deliver an item you are not covered under "seller protection". Just a warning should anything go wrong - eg if the buyer claims they didn't receive it.

If you're that worried, take photo of you putting the item through their letterbox.

Hi, I'm no eBay/postage expert but from my limited experience I would advise you to be wary of the following regarding postage on eBay in general. I'm sure this is covered elsewhere in far greater detail ...

1). Indirectly linked to the original question: eBay charge their final value fee INCLUDING the postage amount, this is one reason never to use the recommended postage cost suggested by eBay - it doesn't allow for their fees and if you are selling something that is borderline small parcel/medium parcel/etc they'd tend to go with the smaller cost.

2). More directly linked to original question: I recently partially refunded a buyer some postage as an item went through as a small parcel rather than medium and there was a saving of around £2 - which was a lot relative to the cost of item. PayPal refund fees automatically but eBay you have to contact after you have refunded with the transaction number from PayPal in order for them to refund their fees. (I used online chat and it was no hassle at all.). So you shouldn't lose out if you do decide to refund postage in terms of fees but will have a bit of work to do to claim back.

I like the idea that someone else suggested; offering free postage - but this may not work if you are selling low value items that you'd see for 99p elsewhere but you're auction starts at £3 say as you covering postage in item value. I'd imagine most people like me search for eBay items by "lowest price including p&p" when searching for Buy It Now items but "ending soonest" for auction items.

Meanwhile another tip I read is that the eBay fee is less if you do a 'Buy it Now' ONLY (rather than auction or both) for items selling for less than £400 (I think!).

Directly answering the question I would say refund, morally speaking. Real decision may depend on how much you value/rely on your feedback score and star ratings, particularly if you are running a business and earning a living from selling on eBay.

You have two options open to you to ensure that you don't leave yourself at risk of being scammed.
1. Post item
2. Contact buyer and ask if they would like you to deliver it. If they do then refund the entire amount and the buyer pays cash when you deliver it.

I would post it. Anything with postage above the cost of a stamp gets sent by a trackable method when I post something won on eBay, if people aren't prepared to pay for the postage they won't buy it, and it means I have proof it was delivered if/when the buyer claims it wasn't - which they sometimes do. They don't know you live round the corner so it makes no difference to them if you're down the road or 100 miles away. For seller protection, you should post it.