21 Day PayPal holds for all new sellers
eBay’s latest seller news letter says they’re introducing 21 day PayPal holds for all new sellers. For 90 days from your first sale the new security step will hold funds as “This will help new sellers to build up a reputation as a trusted member of the eBay selling community”.
There is some good news for existing sellers with a past track record – if you’re setting up a new selling ID you can link it to an existing eBay account and the PayPal holds won’t then apply to you. There’s no information currently on how to link them so I’d suggest PowerSeller support.
This step, although designed as a security step to ensure buyers don’t lose out (by which I guess I mean so that PayPal don’t lose out if a seller turns out to be unreliable), is going to be devastating for new sellers.
I remember when I started out on eBay and cash flow was essential – postage costs rack up at an alarming rate and the ability to access cash quickly enables these costs to be paid. With PayPal holds new sellers will be unable to withdraw funds for three weeks, or even to use payments to fund PayPal postage payments – the upfront investment in selling on eBay has just risen significantly for smaller sellers.
As with all PayPal holds funds may be released before the 21 days if the item delivery is confirmed or if positive feedback is received.