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eBay’s New Cancellation Policy: What It Means for Sellers

eBay has introduced a significant change to its order cancellation policy, making it much simpler for buyers to cancel orders—up until the order is marked as shipped. While this may seem like a positive change for buyers, it introduces new challenges for sellers that need to be carefully managed.

What’s New?

With this update, buyers can now request an order cancellation by simply clicking the “Cancel order” button before the item is marked as shipped. This change is part of eBay’s effort to create a more user-friendly and consistent experience, aiming to build trust between buyers and sellers and encourage repeat purchases.

Seller Impact: The Concerns

Although sellers still have the option to accept or decline a cancellation request, this change can be concerning for several reasons:

  1. Extended Cancellation Window: Traditionally, marketplaces like Amazon, Walmart, and Wayfair provide a 30-minute window after purchase to cancel an order. This short window is critical because it aligns with the typical process where sellers have up to 24 hours to provide a shipping label and mark an order as shipped.
  2. Operational Delays: Here’s a common scenario: You receive an order and forward it to your third-party logistics (3PL) provider. They take a few hours—often more than 12—to generate a tracking number and mark the order as shipped. During this period, the buyer can still cancel the order. By the time you see the cancellation request and try to stop the fulfillment process, it might be too late.
  3. Managing Cancellations: At GeekSeller, we take precautions to avoid such issues by not importing orders into our system until the initial cancellation window has passed. For example, with Walmart, Wayfair, or Amazon, we wait 30 minutes before importing orders into our system to ensure they are in a non-cancelable status before fulfilling them.

eBay’s Protections for Sellers

To address seller concerns, eBay has implemented a few protective measures:

  • Feedback Protection: Sellers are protected from neutral or negative feedback for any cancellation requests made through this updated process, regardless of whether they accept or decline the request.
  • Cancellation Control: Sellers have three days to accept or decline a cancellation request. If a seller doesn’t respond within this period, the request will be automatically declined, but eBay encourages a quick response.
  • Automatic Relisting: If a cancellation is accepted and the item was a single quantity or Buy It Now item, eBay will automatically relist the item unless the seller opts out.

Despite these protections, the change could lead to an increased workload for sellers, who now need to be more vigilant in managing cancellation requests and ensuring that their fulfillment process is quick enough to avoid complications.

What Sellers Need to Do

  1. Monitor Orders Closely: Be proactive in managing your orders. Ensure that you respond to cancellation requests quickly to avoid any potential issues.
  2. Optimize Fulfillment Speed: Work with your 3PL or fulfillment team to minimize the time between receiving an order and marking it as shipped. The quicker this process, the less time buyers have to cancel.
  3. Stay Informed: Keep up-to-date with these changes and ensure your team is aware of how they might impact your operations.

For more detailed information on this new policy, you can visit eBay’s official announcement: eBay Community Announcement – Simplifying Order Cancellations.

About the Author

Daniel Sodkiewicz (Co-founder and CTO)

Daniel is a CTO and co-founder of GeekSeller with years of experience in software development, online marketing, UX design, and e-commerce consulting. Based in Austin, TX, he is an established expert in the industry. Daniel keeps a close eye on the latest trends and news in e-commerce and regularly writes about it on this blog and LinkedIn.

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