eBay sellers will have to learn a new way of getting credited from eBay for transactions with deadbeat buyers. On July 12, eBay will change its Non-Paying Buyer policy and rename it "Unpaid Items."

Under the old system, sellers could file a Non-Paying Buyer (NPB) Alert 7 – 45 days after the listing ended and could request a Final Value Fee credit (within 60 days of the end of the listing).

Under the new system, sellers have two options, including a new "mutual agreement process." If buyers and sellers communicate and agree not to complete the transaction, the seller can file a "Mutual Agreement Not to Proceed" and can file it immediately. This option will prompt the buyer to confirm and, once the buyer does so, eBay will issue a Final Value Fee credit to the seller. The seller will also receive a Final Value Fee credit if the buyer fails to respond in 7 days.

However, sellers who file a mutual agreement will lose the Final Value Fee credit if the buyer changes his or her mind and disagrees, and the seller will not be able to re-file. eBay warns sellers, "eBay strongly recommends that sellers confirm mutual agreement before utilizing this function. If the seller is uncertain about how the buyer will respond, the seller should send an Unpaid Item reminder to ensure eligibility for the FVF credit."

The other option is for sellers to file an "Unpaid Item reminder" seven days after the listing closes. This reminder starts a set of onsite and email communications from eBay to the buyer reminding them that it is time to pay, and giving them instructions on how to do so. Buyers and sellers can communicate with each other on the eBay site in a "dispute console." The seller can file for a Final Value Fee credit from eBay as soon as the buyer responds, or 14 days after the end of the listing if they buyer does not respond.

Sellers should also know that items paid using PayPal and not refunded via PayPal are ineligible for an Unpaid Item credit.

eBay will also allow sellers to file for Final Value Fee credits immediately in the event sellers encounter suspended (NARU) buyers or buyers from a country to which sellers designated via checkbox in Sell Your Item (or other listing tools) they won't ship.

Third-party vendors certified with eBay's API program seem ready for the change. Rick Watson of ChannelAdvisor expects a seamless transition and said some of the changes are better, citing the ability to file an immediate Final Value Fee credit for buyers who are suspended or are from a country the seller does not ship to.

Jerry Lynch of AuctionHelper said, "The API calls needed to issue a NPBA/FVC will, on average, probably double the cost to third party tools. It will still be somewhat inexpensive but when you add it all up for all the users over all the third-party tools, it's more money in eBay's pocket. And it's the seller who's paying for it, again."

Kevin Wray of Vendio said, "There are cases when the resolution does comes sooner. In other cases, communication with buyer might take longer than necessary. Overall, the switch has taken more development time than we would have wanted, but this is admittedly a tough project for eBay."

http://www.ebay.com/securitycenter/unpaiditemprocess

http://pages.ebay.com/help/announcement/upi.html

Article updated July 9 at 4:50 pm