PayPal’s new refund deal is a hit, but sellers are furious

PayPal has launched a new promotional deal that has made some online sellers seriously annoyed.

The deal means that if you buy an item and pay through PayPal, you can change your mind and PayPal will pay the return shipping costs.

The opt-in promotion runs to August 31, and can be used up to four times, up to a maximum cost of £15 each time.

But while it’s certainly a boon to oft-remorseful buyers, sellers who use PayPal have been quick to slam the payment service.

“Great for buyers, rubbish for sellers,” writes HotUkDeals user ublewit. “Especially for those of us who just sell the odd bit here and there.”


The user continues: “There’s nothing to stop some fussy buyer buying one of my daughter’s grown out of, but still perfect, dresses, and deciding when it arrives they don’t actually fancy the colour after all.”

Another user – red23 – posted that the deal is “another nail in the coffin for sellers”, adding:

“I’ve sold my PlayStation 3 for an excellent price while the 50% discount was on. Now at any point said buyer can just ‘change his mind’ and post the thing back to me. Nothing lost for the buyer, the seller gets his used item back perhaps in a worst condition, loses the initial postage on it, and then has to resell.”

PayPal is the main payments service for eBay, so this promotion could have a significant impact on eBay sellers.

Writing on HotUKDeals, user s23adm complained that he’s “stopped selling on eBay because of the bias towards buyers” that he describes as “sickening”.

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But it seems these complaints haven’t deterred PayPal customers, many of whom have praised the new promotion. HotUKDeals told TrustedReviews that the deal “is receiving a lot of heat” from members of its community.

The deal already has a ‘hot’ rating of 2,820 on the deal-sharing site, which is the highest score of the month so far, even beating Tesco’s offer for “free fruit for kids whilst shopping” (2,631 ‘hot’ rating).

In response to the criticisms, a PayPal spokesperson told TrustedReviews the following:

“We are constantly looking at new ways to improve the online shopping experience for buyers and sellers alike. In recent research we found that a third of online shoppers are deterred from making more purchases because of how much it costs them to return goods. In an effort to address this, we have introduced Return Shipping On Us in the UK on a trial basis.”

The spokesperson continued: “We now offer to refund the cost of return shipping if a buyer needs to send something back. This has no impact on the seller’s existing return policy. The service is designed to reassure buyers, and to help sellers convert more sales – which it has been doing successfully in more than 25 countries where the service has launched to date.”

Do you think PayPal’s new promotion is unfair to businesses? Let us know in the comments.

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