Ebay India has just announced changes to its Powership program which affect Freight rates, Fastship, and its Seller Protection criteria. Powership is a shipping solution provided to online sellers by Ebay India. Online sellers subscribed to the program do not have to worry about shipping and logistics as Ebay India handles these aspects. While the program is built to be advantageous to sellers, there have been some issues with it as we have documented before.
According to Ebay India, Powership has enabled sellers to consistently improve their business compared to those sellers who do not use the service. Almost 40% of Ebay’s sellers have enrolled onto the service. Due to certain conditions like inflation and fuel surcharge, freight rates have gone up in the last 6 months. Ebay India says that it did not charge its sellers the increased rate even though the cost increased. Now, it has announced that there will be changes in the Powership program to accommodate these developments. These changes are supposed to go live in the 18th of November.
Here is the breakdown of the changes:
1. Revision of Freight rates:
2. Fastship Discount:
Fastship is a process when shipping is done the same day or on the next business day when the order is placed. In order to incentivize its sellers to ship faster, Ebay India offers a 0.5% discount on PaisaPay fees for each item which is picked up by shipping service provider in that time frame. The company says that Fastship performance is not consistent across sellers, categories and average selling prices (ASP).
In order to make this process consistent, the company is going to grant the discount only on the condition that a seller ships more than or equal to 75% of the items on the same or next business day. Whether or not a seller is matching this criteria will be decided on a monthly basis.
Till November 17th, the current Fastship discount process will be applicable. After 18th this will change to reflect the new policy and the first monthly evaluation be will be done between December 1st-31st on the basis of the previous month’s performance. You will receive a weekly email with an update on your Fastship performance and collected discount. The company also asks sellers to note that Fastship is promotional benefit given out at the discretion of the company and is not binding on the company.
3. Seller Protection for Lost / Damaged items during transit:
Powership also protects sellers against lost and damaged items during transit. This, the company says, is a goodwill gesture and not a right. Logistics Service Providers (LSPs) will cover for items which have been damaged in transit during their wake. This will happen in a case to case basis.
Ebay will cover you if you meet the following criteria:
1. Seller ID is ‘above standard’
2. Seller ID is eTRS (Ebay Top Rated Seller)
3. Overall DSR rating is higher than 4.6
The company said all damaged in transit claims will be investigated by LSPs within 10-12 days of the claim being raised by sellers. LSPs will only cover a certain amount and not the entire value of the product at their discretion.
This change is not positive and sounds rather punitive for a loss that may happen under Powership’s responsibility. While Freight changes and Fastship discounts changes are valid, this last one seems to be designed to get Powership and their LSPs in an advantageous position.
What are your thoughts on these policies? Do you agree with them? Share them with us in the comments.