Dealing with Problem eBay Buyers

Sometimes you just have to wonder why some buyers actually bid. The auction ends…and then the problems begin.

One of the most frustrating problems is when the buyer never responds. Have they disappeared off the face of the earth? Has their computer exploded? Whatever the reason, they ignore your emails and apparently forget that they purchased a second-hand Beatles record collection off you a couple of days before.

The Non-Responder

What should you do? First of all, you need to send them a couple of reminder emails: the first a couple of days after the auction ends, the second, 7 days after the auction ends. Firmly remind them of their purchase and that payment is due 10 days after auction end.

While you may be fuming, it's possible that the buyer has a legitimate reason for not responding. A family emergency, illness, computer problems… these are all legitimate reasons why they may not have got in touch. So give them the benefit of the doubt and wait for 10 days before you take further action.

If there is still no response after that time, grit your teeth and consider filing an unpaid item dispute. Then relist your item and consider blocking the non-paying buyer from bidding.

This solution is not completely satisfactory if you suspect the non-responder has simply gone AWOL, but it's all you can do in the situation. At least you haven't lost money!

After you've filed an unpaid item dispute, eBay should credit your listing fee back and send the non-paying bidder three warning emails. The good news is that eBay is able to suspend non-paying bidders after three warnings.

The Fraudster

A more serious problem - and the greatest risk to eBay sellers - is the fraudulent credit card chargeback. Unfortunately, fraudulent chargeback's are an unavoidable risk when you receive a payment by credit card or through Paypal.

Chargebacks occur when the buyer asks their credit card company to remove a charge from their credit card statement. This can take place anytime from immediately after the transaction takes place to months later, and they can be very difficult to appeal.

There are two things you can do. Firstly, be aware of potentially risky situations, and secondly, learn what pieces of documentation can help you appeal a fraudulent chargeback.

So what situations are likely to lead to a chargeback?

Item not as described: This is a common one. If you haven't provided a full description of your item or stated your terms and conditions clearly, then it's much easier for a buyer to claim your item wasn't what they expected.

Buyer asks for the item to be send via urgent shipping at any cost or shipped to a different address: Approach with caution! There have been some instances where buyers have paid with a stolen credit card (hence the different address), resulting in an "unauthorized" payment claim once the real cardholder realized what happened.

But, it's not always easy to spot these situations. You can't always assume the worst.

However, if you are unlucky enough to be victim of a fraudulent chargeback, then you'll have a much greater chance of a successful appeal if you can show the following:

  • Proof of tracking and delivery: Always use a shipping company that provides tracking and an online confirmation number. Many shipping companies will also get a signature on delivery if you so desire. This documentation means that it's easy to prove otherwise if you do get an ‘item not received' chargeback.
  • Ship to a confirmed address: If you use Paypal, then a confirmed address is one that has been identified by Paypal as safer than other addresses. For this reason, it also gives you an extra leg to stand on when appealing a chargeback for non-delivery.
  • ALWAYS retain proof of refund if you give one: There's nothing worse than providing a refund and the buyer initiating a chargeback as well!

And of course, always provide as much detail as possible in your item description. A good description and a couple of good-quality photos are your best protection against chargeback's for item not as described.

Solving Common Problems

Things can get more complicated for eBay sellers when a sale doesn't go according to plan. That's why the first half of this lesson is devoted to solving common problems.

The Auction ends but Buyer Never Responds

In this case, the first thing to do is check the buyer's feedback. If all their feedback is good, then you can probably relax. Some sellers simply pay slowly. And if they are paying by money order or cashier's check, then it may be a few days before they actually have time to go to the bank. In general, if their feedback doesn't show any similar incidences, I wouldn't send an email for at least 10 days.

If you feel you have cause for concern prior to 10 days being up, send a polite reminder email 4-5 days after the auction. Remind them of the item they purchased and that payment is due within 10 days of completion of the auction. Ask them to get in touch if there is a delay or other mitigating circumstances. If there is still no response after 7 days, send a warning email saying payment is now overdue. Ask them to put the payment through today, or else you will re-list the item.

Still no response? File an unpaid item dispute if you don't hear from the buyer within 14-21 days. Then re-list your item.

The Buyer Backs Out from the Sale

Occasionally a situation will arise when the buyer wishes to back out from the sale. If they email you promptly after the auction and let you know that this is the case, then you should accept graciously and post neutral rather than negative feedback. If you have to chase them up, or the buyer has a bad excuse, then it is fair to leave negative feedback and warn other sellers. In both these situations, if the auction had other bidders, then could consider a second chance offer.

To make second chance offers, just go into My EBay. In the items sold area, you'll find a drop box with a list of actions you can make on a particular auction. Select Second Chance Offer, and then choose the bidders who you want to offer it to. An email will be send to each of the bidders you select. EBay will automatically offer the item at the maximum bid price the auction received. The first to accept the offer will be the new winning bidder.

Package Doesn't Arrive Or Arrives Damaged.

This situation is one of the worst in terms of the negative feedback possibilities. You can only hope that the buyer will be willing to try and resolve the situation with you, rather than making an overly hasty feedback post.

The key to dealing with this problem is insurance: you are in a much safer position if you have it. But whatever the circumstances, the first thing you should do is email the buyer back and apologize. Offer a refund or a replacement if you have one.

If they choose a refund, then it's best to pay by money order or check. PayPal is not such a good choice as they take a cut of the total, so the buyer won't receive the full amount.

Insurance Claims

If you have insurance, you can then go through the process of placing an insurance claim. The process can vary in terms of complexity and length, depending on who you shipped with. (Note: It's wise to check out the insurance claim process before taking out insurance!).

The Buyer's check bounces

Accepting checks can be risky, but note that the reliability of a check payment will often depend on the demographic of your target audience. From my own experience, and from talking to other sellers, the consensus is that more mature buyers, which are usually the audience for collectibles, antiques, and so on, prefer paying by check and are very reliable on the whole. Other categories such as consumer electronics have a younger, less reliable audience. Accepting checks from this demographic is less reliable.

To protect yourself, never post an item until the check has cleared. Warn the buyer that this is your procedure and that a check payment will take 5 working days to clear. In the event that the buyers check bounces, it's good customer service to email them and offer them a second chance to pay, either by PayPal, or a money order by overnight mail or FedEx. This way you are giving them the benefit of the doubt that this was an honest mistake.

Unfortunately, most bouncing checks tend to be fraud. So, if they don't respond to the second opportunity to pay within a day or two, then leave negative feedback warning other sellers and register an unpaid item dispute.

The Buyer Initiates a Chargeback

Fraudulent chargebacks are the main risk you take when you receive a payment by credit card or through PayPal. Chargebacks are designed to protect credit card users, and they occur when the buyer asks their credit card company to remove a charge from their credit card statement. This can take place anytime from immediately after the transaction to months later. Unfortunately, some buyers take advantage of this, charging back a payment on an item they ordered and have no intention of returning, so that they essentially get it for free.

eBay sellers are protected from chargebacks through PayPal's Seller Protection Policy. If you follow these rules, which include shipping to the address shown on PayPal's Transaction Details page, and retaining proof of shipment, then you will be protected.

The best way to stay safe is to never ship to any other address, even if the buyer offers a plausible reason for doing so – even if they say it is for a present. If you are victim of a fraudulent charge-back, and you have followed the rules, then PayPal will help you resolve it. Another way of protecting yourself is to maintain proof of delivery from the shipping company.

**Beware**

PayPal policy does not cover claims for ‘item not as described'. Paypal will work with you to try to resolve chargebacks, but ultimately it is the credit card company's decision – not PayPal's. You can provide email evidence to help the process as well as proof that the buyer was provided with a replacement product. If you communicated a return policy to the buyer, then this may also be of help.

Telephone Diplomacy

Sometimes the best way to get a satisfactory resolution to a problem is to jump on the phone and talk to the buyer in person.

It's easy to find out the buyer's contact information.

  1. Click on Advanced Search under the Search button on any eBay page.
  2. In the search page, click the Find Contact Information link.
  3. You'll need to supply your buyer's User ID as well as your auction's item number as personal information is limited to the two parties involved in an auction. Enter this information in and click the Search button.
  4. eBay will then send you an email containing the bidder's name, city, state, and phone number.

The bidder will also receive an email containing your contact information, including your phone number. Sometimes this email is all it takes for the buyer to get in touch.