What PayPal's New Buyer Protection Policy Means for Sneaker Resellers

Whether you like it or not, reselling has always played a major role in the sneaker game. A multi-billion dollar industry, the idea of reselling sneakers to make a quick buck stretches back to the '80s and '90s when the market was still trying to find its feet. With that said, it looks like PayPal is about to throw a wrench in the works with its brand new Buyer Protection Policy, and here's what it means for private resellers.

According to the payment platform's updated agreement: "We are excluding items intended for resale, including single item transactions or transactions that include multiple items, from reimbursement eligibility under our Purchase Protection Program."

Related: Is GOAT Legit?

This could potentially mean that if you were to trying to sell a pair of sneakers and the buyer claims that they didn't receive it or that the item wasn't as described, PayPal would most likely side with them since you intended to resell to begin with.

Additionally, it's worth noting that sellers whose items are "Significantly Not as Described" are not guaranteed to get their product back. "Under our Seller Protection Program, we are clarifying that the item may not be returned to sellers or sellers may be required to accept the returned item and pay for the return shipping costs." states the policy.

This essentially means that if, for example, you tried to resell a pair of Nike SB Dunks and it was a difference size to what you had advertised, there's a chance that you won't even get the shoes back.

At this moment in time, the definition of "items intended for resale" is still quite blurry. According to Highsnobiety, they are "finished goods that are purchased from a manufacturer or a distributor by a retailer, which are eventually intended to be sold for a profit." However, this opens up a whole can of other questions, like what if you bought the item for your own personal collection but decided to sell it later down the line? Or what happens if a reseller buys from another reseller, will either of them be protected?

With the latter, @nikesbornothing took to Instagram Story to attempt to clear things up. In regards to buying and selling trading cards, if a reseller buys from another reseller, neither of them would be covered under the new agreement even if the buyer intends to keep them for their own personal collection. However, if they buy from the manufacturer themselves, they would be protected under the new policy.

This is extremely confusing as it begs the question of how PayPal knows who is a reseller and who isn't. If you've resold something in the past, does that automatically make you a reseller? What about larger platforms like StockX and GOAT, does this affect them at all?

Over the past few years, many sneakerheads have used PayPal to buy and sell sneakers because of its renowned Protection Policy, so saying that this is an unprecedented move is an understatement to say the least. This has also come as quite a shock considering eBay put its foot in the metaphorical resale door last December when they announced that they were going to start waiving selling fees on sneakers sold at $100 or more in North America.

With all this said, it's worth noting that these changes don't come into full effect until September 14th and they'll only affect those over in the States. Nonetheless, we wouldn't be at all surprised if PayPal decide move the new Buyer Protection Policy over to Europe in the near future. Take a look at the full policy changes here, and be sure to keep it locked at The Sole Supplier for the latest and greatest sneaker news and releases!