eBay unveils new policies

The company said that it will be expanding the PayPal coverage it offers buyers, as well as launching a new programme for sellers.

Known as eBay Live, the incentive program will reward better customer service for vendors. Users who have earned the "Power Seller" branding and have earned a rating of 4.9 in each of eBay's seller categories will receive a 20 per cent discount on sales commissions from the site.

The company will also offer qualifying sellers an additional discount on UPS shipping costs for sold items.

For buyers, the company plans to extend its PayPal coverage. eBay buyers will be offered full coverage on all purchased items, meaning that customers will receive 100 per cent of their money back should a transaction go awry.

PayPal coverage will also be extended for sellers, relieve them of any liability should an unauthorised or fraudulent payment be made.

The company hopes that the moves will boost the confidence of both buyers and sellers going into the summer and holiday shopping seasons.

"We're combining the power of eBay and PayPal to give all buyers and sellers more confidence and trust," said Lorrie Norrington, eBay's president of marketplace operations.

"Buyers who pay with PayPal on eBay will be covered, with no limits, on most transactions."

"Any seller who gets paid with PayPal will be covered on most transactions, too, and can ship to 190 countries worldwide where PayPal is accepted."