The FTC 30 day shipping rule: what it means for eBay sellers in the US

What is the FTC 30 day shipping rule?

The FTC 30 day shipping rule is the common name for the US Federal Trade Commission's Mail, Internet, or Telephone Order Merchandise Rule. In plain terms: if a seller states a shipping time, it must be able to meet it, and if it states none, it needs a reasonable basis to expect to ship within 30 days of a properly completed order. That is where the 30 days in the name comes from.

The rule also says what happens when things go wrong. If the seller cannot ship on time, it must ask the customer to consent to the delay or cancel the order for a prompt refund, and it must refund promptly, without being asked, for merchandise it cannot ship. The FTC explains all of this in its business guide to the rule.

This article explains the rule in practical terms for eBay sellers. It is not legal advice; check your own situation with the FTC's guide or a qualified adviser.

What does the rule require, step by step?

A properly completed order is one where the customer has given you what you need to fulfil it, including payment. On eBay, that normally means the moment the order shows as paid, so your clock starts then rather than when you get round to reading the order.

The key idea is a reasonable basis. Before you promise a time, you should have good reason to believe you can meet it: stock on hand, a supplier with a proven record, or past orders that show how long you take.

How does the FTC 30 day shipping rule apply on eBay?

On eBay, buyers see a handling time and an estimated delivery date before they pay. Those are the shipping promises you have made. Whatever you think about how the law treats them, buyers rely on them, and eBay measures you against them.

That gives three practical rules for US eBay sellers:

1. Set a handling time you can always meet. If your stock or supplier makes the time uncertain, choose a longer one. A short time you cannot keep is the kind of statement the FTC rule is about.
2. Tell the buyer as soon as you know you will be late, and offer the choice of waiting or cancelling with a full refund.
3. If you cannot ship at all, cancel and refund promptly, through eBay, without waiting for the buyer to ask.

eBay's own processes point the same way. eBay's drop shipping policy also says that even when dropshipping, the seller is responsible for safe delivery within the time frame stated in the listing.

What should a delay message include?

The FTC guide sets out the detail of delay notices. In everyday terms, a good message to an eBay buyer includes:

• That the item will not ship within the time stated.
• A new shipping date you have a real basis to expect, or an honest statement if you do not know.
• A clear choice for the buyer: accept the delay, or cancel for a full refund.
• What you will do if the buyer does not reply.

A message you can adapt

Hello [name], thank you for your order. I am sorry: your [item] will not ship by [original date]. I now expect to ship it by [new date]. If you are happy to wait, no action is needed [or: please reply to confirm]. If you would rather cancel, reply here and I will cancel and refund you in full straight away.

Check the FTC guide for what it says about silence, repeated delays and indefinite delays before relying on any wording. Send the message through eBay so it is recorded on the order.

A worked example: one supplier delay

Example, with hypothetical dates. A US seller lists an item with a 3 business day handling time. A buyer orders on Monday. On Tuesday, the seller's wholesale supplier says the item will not be available for 10 days.

• Tuesday: the seller messages the buyer with the new expected ship date and the option to cancel for a full refund.
• Buyer replies to wait: the seller records the reply and ships when the item arrives, adding tracking the same day.
• Buyer replies to cancel: the seller cancels at the buyer's request through eBay, which refunds the buyer.
• Supplier later says the item is discontinued: the seller cancels and refunds promptly without waiting to be asked.

In each branch the buyer knew what was happening before the original time had passed, and no one waited for a refund they were owed.

Why the rule matters for sellers who rely on suppliers

A seller who holds stock knows what is on the shelf. A seller who depends on a supplier inherits the supplier's delays, but the promise to the buyer is still the seller's. That is true under the FTC rule and under eBay's rules.

eBay's policy is specific about sourcing. Dropshipping, where you fulfil orders directly from a wholesale supplier, is allowed on eBay. Listing an item on eBay and then purchasing it from another retailer or marketplace that ships directly to your customer is not allowed, and eBay may remove the listing, warn, restrict or suspend the account. A supplier you can rely on, with known dispatch times, is what gives you the reasonable basis the FTC rule talks about.

Stock you cannot see

If your supplier's stock can disappear between the sale and your order, you cannot always ship. Keep listed quantities low on items with uncertain stock, and set the quantity to zero quickly when supply runs out. Tools that watch stock and update eBay quantities, such as the stock guard described in the Dropizon documentation, help with this; they do not change eBay's sourcing rules or your legal duties.

Common misunderstandings about the 30 day rule

It does not give you 30 days

The 30 days only apply when you state no shipping time at all. On eBay you always show a handling time, so the time that matters is the one on your listing. A seller with a 1 day handling time who ships on day 20 cannot point to the 30 days.

Consent is not a formality

Asking for consent means giving the buyer a real choice. A message that says the item is delayed without offering a cancellation and refund misses the point of the rule.

A refund is not only for when the buyer asks

When you cannot ship, the rule expects you to refund promptly without being asked. Leaving an order open in the hope the buyer forgets, or until they open a request, is the opposite of what it describes.

eBay's protections run alongside it

The FTC rule does not replace eBay's own buyer protection. Buyers on eBay can still use the eBay Money Back Guarantee if an item does not arrive, and eBay's seller performance standards still count late deliveries and cancellations. Meeting one set of rules does not excuse you from the other.

Plan for holidays and peaks

Carriers slow down and suppliers close at busy times of year. Lengthen your handling time before those periods rather than sending delay messages to dozens of buyers afterwards. A realistic time stated in advance is better for buyers than a short one broken later.

A checklist for US sellers

• Read the FTC's business guide to the Mail, Internet, or Telephone Order Merchandise Rule.
• Check that every handling time you show has a real basis in your stock or supplier records.
• Write a delay message template that offers the choice to cancel for a full refund.
• Refund promptly, through eBay, whenever you cannot ship.
• Keep every delay message and buyer reply in eBay messages.
• Take legal advice if you are unsure how the rule applies to your business.

For setting a time you can meet, read our guide to eBay handling time, and for the mechanics of cancelling, see how to cancel an eBay order as a seller.