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  1. #1
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    Clarification on new Ebay "No Reversals" policy.
    Instead they are withholding 6.5% up front. Isn't that effectively a guaranteed 6.5% reversal rate???? They're just taking the money up front instead of after the fact.

    From today's email:

    "Credits Policy

    In response to community questions and comments, we want to clarify how we will calculate and account for credits and reversals in publisher commissions.
    This credits process is guided by two key principles:

    1. Our intention is to not reverse any paid commissions. We understand that publishers want the security that commissions paid to them will not be removed retroactively.
    2. Publishers will be paid based on all revenue that eBay actually receives. That is, publishers should be paid on any gross revenues eBay receives less any credits or reversals on that revenue.

    To accommodate these two requirements, we will deduct a standard rate of 6.5% of eBay revenue on each individual transaction beginning on October 1st. This 6.5% is the historical rate of actual credits for eBay affiliate program transactions.

    Moving forward we will analyze the average rate of credits on your particular account. This historic perspective will determine your “withholding rate” and will be applied to each subsequent transaction you drive. The withholding rate will be updated at the beginning of each month. Please note that the withholding rate will only apply to your Revenue Share transactions and will not apply to your ACRU rates.

    In addition to the withholding rate mentioned above, we have instituted a number of additional network quality processes that will monitor affiliates revenue share behavior. In conjunction with the release of the revenue share compensation structure, we will place a set of new terms and conditions into effect through which we reserve the right to delay compensation for suspected non-compliant transactions and pay commission against eBay’s revenue (net unpaid items and credits)."

  2. #2
    Troll Killer and best Snooper!
    I decide when the pigs fly!
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    So they're reversing their policy on reversals, eh?

    Every time a merchant sets out to do something convoluted with commissions I have to wonder one little thing...what are they trying to hide or obscure?

    ebay's interest in posting 0% reversal rates makes me wonder if CJ intends to bring that very valuable stat back. If so, ebay's found a nice little workaround, haven't they?

  3. #3
    ABW Ambassador Andy's Avatar
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    Hmmm...something's beginning to stink worse than a pound of ground beef in a New Orleans refrigerator since before Katrina struck...

    Andy

  4. #4
    Prince of Content Vinny O'Hare's Avatar
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    After reading that full email it made my brain hurt!

  5. #5
    Chick with Brains Tracy's Avatar
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    Does it say when they will give us the 6.5% back, if nothing actually gets reversed? This is making my brain hurt too.

  6. #6
    I like traffic lights
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    They're saying that the AVERAGE reveral rate is 6.5% so they're using that figure as a withholding amount.

    At the end of the calculation period, if your reversals turns out to be 6% you'll get an extra 1% in your account. If it turns ot to be 7%, an extra 1% will be deducted. Just smooths out the "reversal pain quotient" for everyone.

    IMHO, YMMV, IANAL, etc.

  7. #7
    ABW Ambassador Andy's Avatar
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    I wonder if the 6.5% held back starts today, October 1st, or if they started holding back some over the past few weeks. That could explain part of the dip in eBay activity on one of my sites.

    Andy

  8. #8
    Moderator MichaelColey's Avatar
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    The way I read it, they'll assume a 6.5% credit to start and monthly they'll adjust it for each affiliate based on actual credit rates that they're seeing with that affiliate. For instance, in September they'll assume 6.5% and automatically adjust for that in every transaction. If your actual credit rate in September is 10%, that's what they'll use for October. If your actual in October is 3%, that's what they'll use for November.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  9. #9
    I like traffic lights
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    I think Michael's nailed it.

  10. #10
    ABW Ambassador erninator's Avatar
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    Quote Originally Posted by nyfalcon
    After reading that full email it made my brain hurt!
    Same here. I don't think I've ever made it to the end of one of those emails. Thank god I don't rely on them heavily. I've got their links up only because people expect to see them on my auction page.
    ~Ernie

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