Some very basic setting up an ebay business questions

chickaroonee

ludovico wrote: »

Regarding your question on the DSRs, you have to refund the original payment in full and if you wish the consumer to bear the return costs you must specifically state this in your terms.

You must also not link the consumer's right to cancel with the condition of the goods being returned, you may however state the goods must be returned (point is if the buyer doesn't return you still have to refund and then claim your loses separately, in reality the consumer would have to take you to court to enforce this refund). Most sellers make the mistake of saying the customer can return within x amount of days, but you should state they can cancel within x amount of days.

You must provide your customers with details of their right to cancel via durable means, either a printed copy with the goods or by email (the eBay order confirmation email has a section for sellers to add a message and this is a good place to put this info) or by fax.

You can use your private account to sell as a business, you just need to change it from private to business via the preferences under the account tab in your My eBay and I believe any previous private sales will count as transactions towards Power Seller, Top Rated Seller and transaction ratings for performance.

You only get a discount on fees if you are Top rated, Power Sellers who fail to perform within eBay's guidelines for Top rated no longer get any discount, your performance can be monitored via the Dashboard in your My eBay.

Thanks very much. Can I ask a question about DSRs - you say "refund the original payment in full" - I take this to mean the outward postage?

Thanks also everyone who advised about TRS. My stars are good just now, with no low ones, although I don't have enough transactions for it yet. However, if I get it up and running as a business account in the next few weeks, I think I might get there within a few months.

the_lunatic_is_in_my_head

No worries, yes you do unfortunately have to refund the outward postage, but my understanding is if the customer opts for an additional service (Special Delivery, gift wrapping, etc) this does not have to be refunded (unless offered as standard as part of the purchase).

chickaroonee

Well I've just changed my ebay account to a business one, that was easy enough. I'm near to TRS standard on transactions and performance, but no-where near it on sales £. Something to aim for I guess!

Edited to add - ebay have definitely automatically carried over all my personal sales on to the business account for TRS/power seller evaluation.

macfly

Oliver14 wrote: »

That is a bit of a grey area. I think the 3 month thing used to be listed years ago. Now all they say is you need to register as soon as possible. So I would register as early as possible. Just because you register doesn't change anything if your not trading yet.

http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm

It's not a grey area at all. You have three months. The advice leaflet on "when to register" states it clearly "as soon as possible but no longer than three months". That starts from your first sale.

soolin

ludovico wrote: »

No worries, yes you do unfortunately have to refund the outward postage, but my understanding is if the customer opts for an additional service (Special Delivery, gift wrapping, etc) this does not have to be refunded (unless offered as standard as part of the purchase).

Any claim through paypal or ebay recovers the full original payment back for the buyer, regardless of what is considered extra.

Oliver14

macfly wrote: »

It's not a grey area at all. You have three months. The advice leaflet on "when to register" states it clearly "as soon as possible but no longer than three months". That starts from your first sale.

Well that is totally different from the advice given directly from the Tax office then and what is written on their website. Not that it matters you can argue semantics all you like but you should register as soon as possible no matter what. It will not effect how much Tax you pay or what you can claim as business expenses.

the_lunatic_is_in_my_head

For a change of mind return handled professionally by a seller there should be no need for a dispute (unless the customer chooses to be difficult), however even if eBay or Paypal refunded in full the consumer would still be liable for the costs of an additional service. Enforcing this is difficult and it most cases not feasible but the DSRs do state a retailer does not have to refund for these costs.

soolin

ludovico wrote: »

For a change of mind return handled professionally by a seller there should be no need for a dispute (unless the customer chooses to be difficult), however even if eBay or Paypal refunded in full the consumer would still be liable for the costs of an additional service. Enforcing this is difficult and it most cases not feasible but the DSRs do state a retailer does not have to refund for these costs.

I cannot imagine that any buyer would accept a partial refund if they know that by opening a dispute they can get a full refund. Would you accept a lower amount rather than go for a dispute if the seller refused to refund?

the_lunatic_is_in_my_head

Well yes I would because I accept that I am changing my mind and am not entitled to be refunded for these additional services. The seller isn't refusing to refund in full, they are complying with what the law states. For example taken from Amazon:

[FONT=verdana,arial,helvetica][SIZE=-1]"You should be aware that once we begin the delivery process you will not be able to cancel any contract you have with us for additional services carried out by us (eg: giftwrapping)."[/SIZE][/FONT]

A buyer who opted for an addition service and then cancels their contact because they have changed their mind but expects more than the seller and the law offers is acting unreasonable IMHO.

chickaroonee

Thanks all, registered with HMRC and that was easy too, I've not made any sales yet but figured if I do it from now I'm ready to go when I'm recovered from my operation (hopefully).

Do any of the business sellers have experience of not having receipts for things? They're stuff I would buy at car boots etc so no chance of it, it'll be for small prices but I still want to include them if I can. I will give HMRC a call too to ask their advice when I get chance, but phone calls are virtually impossible just now as the baby screams for my phone whenever I use it...