eBay Business Policies - USA

Step-by-step guide for creating your eBay business policies for US suppliers

In order to set up an eBay account, you need to create business policies. 

eBay business policies are the terms and conditions tied to listings we post on eBay. They cover three major areas: Payment, Shipping, and Return.

It is essential to create policies correctly to avoid future errors or suspensions in the account.

In this guide will cover how to opt in and create policies for US suppliers.

To find out about business policies for Chinese suppliers, click here

How To Opt-In And Create Policies For USA

Opt-in to eBay business policies

business policies opt in

eBay does not offer business policy configuration by default. Assuming you have an eBay dropshipping store, you’ll first need to opt-in for business policies. This opt-in step is required before creating any listing.

Additionally, dropshippers who want to automate their store with AutoDS will need to create their policy templates before importing products to their store. That’s because AutoDS asks you to choose a business policy when importing products to your store.

We will discuss how to choose a template on AutoDS later in this article. However, first, we’ll need to set up the policies on eBay.

How To Create eBay US Business Policies

us buisness policies

Once you’ve opted in, it’s time to create business policy templates for your US Suppliers. There are three separate policies to create: Payment, Shipping, and Returns.

As mentioned before, your shipping and return policies should match those of the supplier.

US suppliers ship products much faster than Chinese suppliers. Additionally, they have different timeframes for returns. As such, we will learn how to create policy templates tailored for US suppliers.

We know what you are about to ask; what if I want to work with multiple US suppliers? In that case, you will need to create a separate template for each. However, sometimes two suppliers have identical policies, in which case we can use the one template for both.

In this guide, we’ll focus on Walmart as an example, so you know the general setup for US suppliers. Then, you can apply that to your other supplier templates with the correct variations.

Payment Policy

ebay payment policy

To begin, head to the eBay business policies page.

Start by preparing a payment policy default since that will be the same for all US suppliers.

Click ‘Create policy’ and select ‘Payment.’ 

create payment policy

eBay asks you to name your policies, so it’s easier to select the appropriate one later. Since we only have one payment policy, call it ‘eBay Payments – Immediate Pay.’

As mentioned earlier, we only have one payment policy, so make sure to check the box that says ‘Set as a default payment policy.’ This way, every item you add to eBay will have the policy assigned automatically. 

ebay payment policy

You’ll be able to choose how to receive payments for items tied to this policy. If you already have eBay managed payments, you won’t need to do much. Simply click the checkbox near ‘Require immediate payment when buyer uses Buy It Now.’

By checking this box, we ensure that customers pay in full before their products get shipped out.

This means you can accept various payment options and receive funds for these items directly to your bank account or Payoneer.

Either way, don’t select any other payment method like ‘cash,’ ‘check,’ and so on.

For those still on the PayPal system, Checkmark ‘PayPal’ and type in your PayPal account email address.

You’re all done with the US payment policy. Scroll down, save, and go back to the business policies page. 

payment options ebay

 Return Policy

Like we did for payment policies, click on ‘Create policy,’ but this time click ‘Return.’

create return policy

Since we will create more than one return policy, name each based on your supplier. In this case, we are using Walmart, so call it “Walmart US Return Policy.” 

name return policy

Begin by selecting ‘Domestic returns accepted.’ This just indicates whether you accept returns from US buyers.

Most Walmart products allow 90 days for returns. The maximum eBay offers is 60 days, so from the drop-down menu, select ‘60 days.’

60-day return policy provides you with the added benefit of showing up higher on eBay search results compared to sellers with 30-day returns (or no returns at all).

Since Walmart offers free returns, scroll down and select ‘Seller (Free Returns)’  where it says ‘Return shipping will be paid by.’

Finally, check the box near ‘Replacement or exchange available.’

domestic return policy

Leave the international return policy blank since it won’t be needed for US suppliers.

Finally, click ‘Save.’

Now you have a return policy template for all Walmart products. Every time you add a product, you can select this template from a drop-down menu. 

Shipping Policy

We’ve covered return policies for US supplier products. Next, let’s set up the shipping policies.

On the business policies page, click on ‘Create policy,’ followed by ‘Shipping.’

create shipping policy

Like returns, shipping policies have two components: A. US Shipping (for addresses in the US). B. International Shipping.

We’ll name this policy ‘Walmart US – Shipping Policy.’

Starting with US shipping, select ‘Flat: same cost to all buyers.’ 

Then, under ‘Services,’ choose ‘Standard Shipping 1-5 Business days.’ Walmart typically offers 2-day shipping. But it can vary. 1-5 should cover most Walmart products.

Avoid selecting specific delivery companies like UPS or FedEx because it can vary from item to item.

Next, on the right side, check the ‘Free Shipping’ box.

US shipping walmart

Remember that as dropshippers, we offer free shipping to everyone. If a supplier’s order carries a shipping cost, AutoDS simply adds that to the item’s total price or what we call “Break Even Settings.” 

It’s essential to offer the customer free shipping. That’s because free shipping on a product ranks it higher on eBay searches. You won’t lose any profits because you’ve already included the shipping cost in the product price.

Now, under ‘Handling,’ select ‘3 business days.’

handling time US

Why It’s Important To Add Handling Time

Handling refers to the time it takes from when an order is received until tracking information is available. For US suppliers, this can take anywhere from one to three days.

As you probably know, late deliveries or taking longer than your specified handling time to provide tracking can hurt your seller account.

Therefore, adding three-day handling gives you a total of eight days to deliver the product and covers you in situations where there are shipping delays.

Once you see that a supplier consistently delivers faster than eight days, you can start lowering your handling time for that policy.

The general rule is the less handling and delivery time, the higher you rank on an eBay search. Nevertheless, don’t take unnecessary risks in this department.

How To Earn Extra Profits With Expedited Shipping

expedited shipping profit

Here is a neat little trick that can earn you over time more profits and increase your Average Order Value:

Recall that we selected 1-5 Business days for shipping and 3 days for handling. The truth is that Walmart products never take the whole eight days to deliver. Therefore, you can offer the customer to pay more for expedited shipping for an additional cost.

Since Walmart delivers in this timeframe anyway, the additional shipping charge is %100 clean profit for your business.

To implement this technique, select ‘offer an additional service.’ 

offer additional service

Then, you can pick ‘Expedited Shipping (1 to 3 business days) from the drop-down menu.

Finally, insert the total shipping cost you want to add. For example, you may add $1.99.

Don’t forget to enter $0.99 in the ‘Each additional’ field so that customers pay $0.99 for every expedited item they add. Typically suppliers do not charge us for shipping additional items, so adding this charge is %100 profit for us.

extra cost shipping

International Shipping Policy

When dropshipping on eBay from US suppliers, it’s best not to set up international shipping policies. Leave this section blank. 

no international shipping

If you choose to ship internationally, join Hipshipper. They automatically create and assign international shipping policies on eligible listings. What’s more, Hipshipper’s full integration with AutoDS makes it even easier to manage international orders. 

Exclude Shipping Locations For US Suppliers 

Because we are not creating international shipping policies, select to exclude all regions and countries except for the United States. 

Click on ‘Create exclusion list.’

exclude shipping locations

Then, check all the boxes, and click ‘Apply.’

dropshipping locations excluded

After this, scroll to the bottom and click ‘Save.’ We’re all done setting up US suppliers eBay business policies! 

If you have any further questions, please do not hesitate to contact us at the support chat - we are happy to help.