Straight Up Fraud: Permanently Suspended Without Reason – eBay Holding £857 – BEWARE Sellers

[hyprogear]

Hi everyone,

I need to share my experience, because what eBay is doing to sellers right now is absolutely disgusting, and I want to warn anyone who’s still trusting this platform with their business.

I upgraded to a business seller account a few months ago after speaking to customer support, who reassured me I was doing everything correctly. Within a week, I received a random email saying my account had been placed under a “periodic payment review.” Two days later—boom—payouts were blocked.

Next came a long list of demands:

• All tracking numbers (which were already uploaded for every order)

• Proof of ID, address, business documents — I gave them all of it without hesitation

• Then they asked for invoices for every item I had listed. I spent hours gathering and uploading them.

They came back again asking for the same documents repeatedly. I complied every time. I did everything by the book. I was cooperative, polite, and thorough.

Then, no reply. No support. No reason given. Just silence.

Eventually, I was permanently suspended from selling. No appeal. No human contact. No justification. Nothing.

They are now withholding £857 of my money and I’m being told I cannot export my listings, cannot access my funds, and cannot even speak to someone about it.

This is not just bad policy—it feels like fraudulent behaviour.
They are keeping funds that don’t belong to them. They are tearing down legitimate businesses without cause. They are treating sellers like criminals and hiding behind automated messages.

This is financial abuse. It is unethical. It is possibly criminal.

I’ve lost my business, my income, and months of hard work—and eBay refuses to even offer an explanation.

If you are a seller: get out while you can. I wouldn't wish this experience on anyone.
They do not care about “valued sellers.” They care about control and profit. That’s it.

To the eBay team: You’ve destroyed trust, and you’re now destroying livelihoods. This platform has become a predator to the very sellers that built it.

Has anyone else gone through this? Is there any actual help out there? Or are we all just expected to walk away while they hold onto our money?

[themidnightcaller]

There was another thread today with multiple seller's money being held (£12,000,£7,000,£2,500 etc..).

https://community.ebay.co.uk/t5/Payments/Permanently-suspended-funds-on-hold/td-p/7541185/page/4

[technthread]

I would request call backs via the help section chat bot until you speak to an agent based in Ireland. I haven’t personally gone through this but I know someone with a permanent ban who couldn’t get it sorted until they got through to Ireland CS.

I think the negative feedbacks could be a reason for the flag initially as it took your % down to 94 and some of the harsh comments may have swayed eBay when they reviewed the account. 

[therenewalworkshopltd]

This is not fraudulent behaviour.

Virtually certain that this has be Know Your Customer check and as a result of it, you have not passed through the process.

If you don't, then they are obliged to put a lock on your funds until it is proved one way or the other.

As this is all to do with fraud prevention and money laundering etc, it is hardly surprising that they would hold money.  This may not be a comfort to you, but it is a legal process.

So you need to work out why you have failed it.

You say that they have asked for the same documents repeatedly.  Which documents, as it's likely that there is an issue with these?

Are you using receipts from wholesalers, rather than retailers to prove your stock is valid etc?

[m.j.rodgers]

From your customer feedback. 

Item was posted from China, not UK as the listing implies

If this is true then, to be fair, you did it to yourself.

Given that there are some other feedbacks that suggest you are not a good seller and I would chalk this up to experience.

Make sure your listings are 100% accurate. Never lie about delivery times. e.g. the difference in delivery from  China and from the UK. Customers will notice and they will complain to ebay about it. 

As for the withheld funds. They are likely holding it against future claims. Chargebacks and the like can happen six months after the sale so kiss it goodbye until then. 

I know this sounds harsh and it is. You apparently made a couple of huge mistakes. 

[bravergrace]

Obviously, I'm not eBay so I don't know why they did this to you.

All I can go on, is what's visible on your account - the feedback, and the listings.

From that, it is pretty clear that you have been breaking several eBay rules.  These may seem trivial to you, but they are important to buyers and important to eBay.  eBay may have taken them into account when deciding what to do about your account.

For instance, listing the item as located in Bournemouth - and sending it from China.  And then leaving rude feedback blaming the buyer.  This is a really important thing for buyers - not just because of the delivery times, but because of safety concerns - will the item meet British safety standards? - and worries about having to pay import fees.  eBay really cares about this one.  

Or selling something as a "Lenovo drone", and them blaming the buyer for thinking they'd bought a Lenovo drone.  This is illegal behaviour in the UK - it's deliberately misleading people into thinking they're buying a trusted respectable brand, and then sending them an inferior substitute. 

If lots of buyers make complaints (to Trading Standards, or to their MPs, or to the media), eBay get into trouble with the UK authorities for allowing sellers to break the law.  eBay really, really HATE this bad publicity, and they will cheerfully get rid of sellers who "pose a risk".

As I said, I don't know what eBay's reasons are for suspending your account, but these two things - both of which you admit to doing in the feedback you left - are probably enough to get you a permanent ban.  I may be wrong, but if you do get your account reinstated, you will have to make sure you abide by ALL the eBay rules, not just the convenient ones.

[hyprogear]

Thanks to everyone who replied — even those who were critical. I want to give you the full breakdown and then double down on what this is really about: eBay’s disgraceful and predatory treatment of sellers.

I’m now updating this thread with the full timeline and facts. This is not just about one seller — this is about how eBay systematically dismantled a compliant business, froze funds, and cut off all communication — while claiming to support small sellers.

Let’s get into it.

⸻

1. Business Account Upgrade and Full Transparency

We upgraded to a business seller account under the brand HyproGear. Before doing so, we called eBay and spent over an hour confirming everything — policies, branding, shipping methods, and ID. They confirmed that we were in full compliance and good to go.

We then began fulfilling 10–15+ orders per day under our brand, using our own imagery, model names, and listings.

Important: We only had one listing where the product name included “Lenovo” — and that product clearly stated it was a concept drone and not made by Lenovo in both the description and title. All our other listings were 100% HyproGear branded and compliant.

⸻

 2. Sudden Payment Freeze – “Periodic Payment Review”

Just two days after upgrading to a business account, our payouts were frozen due to a Periodic Payment Review.

They asked us for tracking numbers — but we had already uploaded tracking for every order. Still, we responded and re-confirmed every order manually.

That should have resolved the review. But then…

⸻

3. Linked Account Restriction – Resolved Immediately

We were hit with an unexpected restriction: our HyproGear business account had been linked to another account — cran-5689, which belonged to my son.

That older account had a small overdue balance from selling fees years ago. We immediately paid it off in full and brought the account back into good standing, confirmed directly by eBay.

Despite the issue being resolved, HyproGear remained restricted.

We contacted eBay again, explained the situation, and were told: “Thanks for clearing that up — now we just need some documents from you.”

⸻

 4. Documentation Requests – A Moving Goalpost

From here, things spiralled:

• eBay first asked for proof of ID and address — which we submitted and were told was accepted.

• Then came a request for invoices for our top-selling item — our GPS drone.

• We submitted the full invoice trail for that product, with quantity, price, supplier, and payment details.

Then, with no warning, they came back and asked for invoices for every single item ever listed on our account, not just sold — listed.

That meant compiling dozens of documents for all our product categories. We spent hours gathering and submitting everything eBay asked for.

What happened next?

Silence.

Then: Permanent Suspension.

No human response.

No clear reason.

No appeal route.

⸻

 5. Our Model – Fully Explained, Fully Compliant

We operated under a semi-dropshipping model — a legal and supported model under eBay’s own dropshipping policy.

• Most items were fulfilled from our own stock in Bournemouth.

• Some were fulfilled from our warehousing partners overseas, where we owned the inventory.

We were 100% transparent in dispatch times and held full records for every order.

⸻

And Then… We Were Shut Down

• eBay blocked our payouts.

• eBay locked us out of 80+ listings.

• eBay denied us a chance to appeal.

• eBay provided no meaningful human contact.

• eBay still holds our £857 with no timetable for release.

⸻

Let’s Get Real

Thanks for all the replies — it’s clear the eBay Community is divided between sympathy, redirection, and criticism. So let’s set the record straight.

Yes, some stock was shipped from overseas — with clear delivery windows, full tracking, and zero deception. This isn’t about listing errors. It’s about eBay greenlighting listings, collecting fees, and then turning around to suspend you without any accountability.

To those calling this “just a KYC check” — I complied with every single request. Documents, invoices, re-submissions, hours of admin work. If this was really about verification, they would’ve communicated. They didn’t. They punished.

As for holding funds — we get chargebacks exist. But £857 locked for months without updates? That’s not “compliance” — it’s theft by policy. If a payment processor did that without reason, they’d be in court.

And to those referencing the Lenovo listing: stop misrepresenting what happened. It was a conceptual drone, clearly described as such. One buyer misunderstood. We resolved it professionally. That case was minor — yet eBay used it as ammo to destroy our store.

⸻

This Is Systemic

Our story is not unique.

There are sellers losing £2,000, £7,000, £12,000+ with the same treatment:

• Suspended.

• Ghosted.

• Funds held hostage.

eBay is weaponising policies to hold cash, eliminate sellers, and reduce support overhead. This is coordinated, and it stinks of cash flow manipulation at scale.

⸻

Final Word

If eBay doesn’t want dropshippers, overseas inventory, or conceptual branding — say it clearly.

Don’t approve a business, let it grow, take its revenue… and then cut it off without reason.

I’m escalating this to:

• Trading Standards

• Financial Ombudsman

• Action Fraud

• Possibly small claims court

This is no longer about the £857. It’s about a corporation that:

• Takes your fees

• Withholds your earnings

• Ignores your documents

• And treats legitimate sellers like disposable trash

To fellow sellers:

Back up your listings. Export your orders. Save your data.

You could be next — and you’ll never see it coming.

HyproGear

“Gear Up For The Future”

[technthread]

I wondered whether this could also be due to the listings being drones. I realise they can be sold legally but I wonder if eBay is getting nervous about it as they are being used in active conflicts.

Tell me if I’m being daft here if I am, I haven’t sold a drone on eBay for about 4 years. 

[therenewalworkshopltd]

The sad thing is, that most of the time it's very obvious and you can see it coming a mile off.

As I said previously, Ebay have a legal requirement to hold funds, if they think that you are trading incorrectly etc.  No amount of complaining to Trading standards and so on will get you anywhere.  You need to comply with their requests etc.

As to the things that have been pointed out, you are dreaming, if you think that what you have been told is not right.

Selling something and misrepresenting it's location, is major offence on Ebay!  That's got nothing to do with whether or not they dislike dropshippers etc.  In point of fact, as long as you stay within policy, dropshipping is allowed.  What is not allowed, is telling a customer the item is in the UK and then shipping it from China!

As regard the points about the Lenovo drone.

Please do explain to me how this title is not for a Lenovo drone?

"PRO Obstacle Avoidance Lenovo Drone, HD Dual Camera WiFi Optical-Positioning"

At the very least, you are misleading customers with that title.  I know that if I bought that, and got a generic drone in it's place, I would be seriously peeved about it!

[therenewalworkshopltd]

I somehow doubt it.  Though it of course possible.

A very quick search gives over 16k results for drones, so they are clearly still being sold.

This one has more to do with the way things have not been done properly I think.

Ebay does not just withhold funds without cause, no matter what the OP may think.

[hyprogear]

To make something absolutely clear to eBay and to every seller reading this:

This was not a policy breach.

This was not a “compliance failure.”

This was a targeted, unjustified takedown of a compliant seller who followed every instruction, submitted every document, and communicated professionally at every step.

We confirmed our business upgrade with eBay before launching.

We fulfilled all orders professionally, uploaded tracking, responded to buyers.

 We cleared a linked account issue instantly and were told the matter was resolved.

We submitted ID, utility bills, business verification, product invoices (not once — but twice).

We operated under a hybrid model clearly within eBay’s dropshipping policy.

And in return?

❌ No warning

❌ No appeal

❌ No explanation

❌ Permanent suspension

❌ £857 of our money still held with no timeline or justification

To those defending eBay’s process: this is not about protection, it’s about profit. eBay is actively harvesting seller funds, blocking withdrawals under vague pretences, and providing zero human oversight or fairness. I’ve seen sellers lose thousands, and now I’ve joined their ranks. It’s happening to dropshippers, small retailers, even UK-based branded sellers like us.

If you’re a seller on eBay — you are one vague “review” away from total suspension.

No due process. No one to speak to. And no way back.

🔴 To the eBay Trust & Safety Team (since we know you monitor these forums):

You didn’t just shut down a business. You shut down a future. A brand. A legitimate operation that complied with every request. You took our money, our listings, and our platform — and gave us nothing in return. Not even a phone call.

This isn’t enforcement.

This is abuse of power, and it’s happening systemically.

We’re moving on now — building our brand independently.

✅ This is about every small business who trusted this platform.

✅ This is about transparency, accountability, and seller protection.

If you’re reading this: back up your listings. Save your tracking. Prepare for the worst.

Because once eBay turns on you — there is no appeal, no logic, and no justice.

Thanks to those who offered genuine support. And to those who didn’t — I hope you never find yourself in the same situation.

[4_bathrooms]

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@hyprogear wrote:

Important: We only had one listing where the product name included “Lenovo” — and that product clearly stated it was a concept drone and not made by Lenovo in both the description and title. All our other listings were 100% HyproGear branded and compliant.

---

As I'm sure you're aware Lenovo are a large tech company that manufactures drones similar to the ones you were selling. Their brand name is trademarked so you were breaking trademark law by making unauthorised use of their mark in your listing. I suspect you did this to manipulate search results which is also a serious breach of eBay policy.

---

@hyprogear wrote:

Yes, some stock was shipped from overseas — with clear delivery windows, full tracking, and zero deception. This isn’t about listing errors. It’s about eBay greenlighting listings, collecting fees, and then turning around to suspend you without any accountability.

---

I suspect this was the one that really got you into trouble. If you entered "United Kingdom" as the item location you didn't just break eBay's item location policy but VAT law as well. Items that are located overseas and sold through online marketplaces are subject to supply VAT at the point of sale or import VAT upon import. Where the value of the goods is £135 or less eBay are responsible for charging and remitting VAT at the point of sale; if the item location is misrepresented this doesn't happen and the buyer will likely be charged VAT, duty and a handling charge by the domestic carrier. As HMRC holds online marketplaces jointly and severally liable for the VAT obligations of their sellers any violation of this policy is taken extremely seriously.

No matter what you believe your selling activities were neither compliant with eBay's policies nor the law.  

[superchallenge]

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@hyprogear wrote:

If you’re reading this: back up your listings. Save your tracking. Prepare for the worst.

---

Any first-year business studies student knows to do this anyway. I would expect anybody looking to build "a future" or "a brand" to know it, too.

Contingency and diversification are key. It's a part of risk management and threat mitigation. If you rely on one platform and have no backup plan, you're always at their mercy.

[m.j.rodgers]

Obviously you're under no obligation to accept that you violated eBay's published policies.

I and others can link to your barn door obvious mistakes. But you don't have to accept them. 

That said if you really believe you didn't violate policy and that eBay have committed criminal and/or contractual breaches then the forum isn't the place to solve it.

Either law enforcement / trading standards or the civil courts would be your next step. Otherwise you're just shrieking into the void. 

[hyprogear]

Thanks again to everyone contributing — especially those offering detailed responses. I want to acknowledge some of the points raised, take responsibility where appropriate, and also clarify where misunderstandings may still exist.

---

On the Lenovo Listing – @4_bathrooms

You're absolutely right to raise the issue of trademark sensitivity, and looking back, I can now see how including the word “Lenovo” in the product title — even when clearly labelled in the description as a “concept drone” and “not made by Lenovo” — was a misstep. While our intention wasn’t to mislead or gain traffic unfairly, we do understand that including a trademarked brand name in a product title without authorisation can be interpreted as keyword manipulation and a policy breach.

It’s a lesson learned, and one we accept full responsibility for.

---

On Item Location & Overseas Fulfilment – @4_bathrooms

This one is more nuanced. We did indeed dispatch some orders from overseas partners, using a semi-dropshipping model where most stock was held locally and some fulfilled externally. We now understand that marking the item as "Located in the UK" — when in certain cases the item shipped directly from a warehouse overseas — does not align with eBay’s item location policy and, more importantly, could have VAT implications beyond our initial understanding.

We had no intention to mislead, and we genuinely thought we were working within the bounds of eBay’s dropshipping policy. But clearly, the item location/VAT distinction is more serious than we appreciated. So again, we admit that error and would encourage others in similar models to double-check how they present item locations to avoid the same fate.

---

On Risk Management and Platform Reliance – @superchallenge

Point taken — and no argument there. In hindsight, it’s true that we put too much trust in one platform without a robust enough backup plan. We’re now migrating to our own site , developing a TikTok Shop presence, and planning physical pop-up events to diversify. We’d still argue, though, that sellers shouldn’t be punished with withheld funds, removed listings, and no appeals — just for not having a "Plan B." eBay still owes all sellers transparency and proportionality.

---

On the Forum Being the Wrong Place – @m.j.rodgers

We agree — this thread isn’t going to fix what happened. But we also think it’s important for other sellers to see what happens when something goes wrong and how brutal eBay’s systems can be. We're not here for sympathy — we’re here to document what’s become a far-too-common seller experience.

To be clear: we’re already escalating this beyond the forums —  potentially small claims court if the funds remain frozen. But the community still deserves to know what’s going on behind the curtain.

---

Final Note

We’re not pretending to be perfect sellers. We’ve made mistakes. But mistakes should be met with a chance to fix them — not a permanent, appeal-less suspension and a total hold on earnings. That’s what we’re standing up against.

If nothing else, we hope this helps other sellers spot warning signs earlier, protect themselves, and push for a platform that treats its sellers with fairness and respect.

Thanks again,
HyproGear
“Gear Up For The Future”

[therenewalworkshopltd]

Why can you not see what the issue is?

You have basically admitted in your post, that you have broken multiple rules.

As a consequence of that, you have received a permanent ban.

It's easy to stay compliant on Ebay, you just follow the rules.  If you don't know them, you learn them before listing anything.  Had you done that, you would have seen the warning signs yourself. 

You will get your money back as they won't permanently withhold it (unless there are other issues your not saying) and after a period (90 days I believe), you will be able to get your money back.

So all this posturing is an utter waste of time.

You have been treated with fairness.  It was not Ebay that broke the rules, but you.