Can a buyer legally deduct an extra percentage from my weight as a standard "shrinkage allowance"?
Short answer: Whether this is legally permissible generally depends on whether it was disclosed and agreed to as part of your transaction terms before the sale — a shrinkage or handling allowance that was clearly communicated upfront is different from one introduced only after weighing, which is a much weaker basis for a buyer to apply and worth pushing back on directly.
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List Free →The key distinction: disclosed versus undisclosed
A shrinkage or processing allowance that’s part of a buyer’s clearly stated, standard terms — communicated before you agree to sell — is a different situation from a deduction introduced only after your material has already been weighed, with no prior mention of any such allowance.
Why undisclosed deductions are harder to justify
If a “shrinkage allowance” wasn’t mentioned before you agreed to the transaction, applying it afterward effectively changes the terms of your agreement without your prior consent — this is reasonable to dispute, similar to any other undisclosed after-the-fact deduction.
What to ask for going forward
Before delivering to a buyer, ask directly whether any shrinkage, handling, or similar allowance applies to their weighing process, and get the specific percentage or basis in writing — this protects you from an unexpected deduction and gives you something concrete to reference if a dispute arises.
How ScrapTrade Makes This Easier
Asking ScrapTrade buyers to disclose any shrinkage or handling allowances upfront in their listing terms prevents this exact undisclosed-deduction situation from catching you off guard.
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