Opening an Unpaid Item Dispute

Friday 20 November 2009
by SaleHoo.com

Hi!

This week, we're taking a look at the Unpaid Item Dispute process. I sincerely hope it's not a process you will have to use very often, but nonetheless, it's worthwhile being familiar with it.

What is it?

Filing an Unpaid Item Dispute is the mechanism eBay has in place for problem resolution. You have 45 days after the transaction date to report an Unpaid Item.

Normally you have to wait 7 days after a listing closes to file an Unpaid Item dispute, however some circumstances allow an immediate filing:

• the buyer is no longer a registered user of eBay at time of filing
• the buyer is from a country to which the seller has indicated they will not ship.
• Both the buyer and seller wish to mutually withdraw from the auction.

When should you use it?

The Unpaid Item dispute can be used if you have an unresolved problem with a buyer who doesn't pay, pays fraudulently, or backs out from the sale.

How does an Unpaid Item Dispute work?

By filing an Unpaid Item Dispute you are opening official communication between the buyer and eBay, and the following procedure takes place:

eBay sends official reminder to the buyer giving them three response options:

• The opportunity to pay now - the buyer fronts up with the money and you close the dispute.
• I've already paid - the buyer must provide evidence that they have already paid. If this is satisfactory, close the dispute.
• Communicate with you via an eBay web page. You should do your best to work things out, but you aren't obliged to participate in a pointless conversation.

**Top Tips for Avoiding an Unpaid Item Dispute**

• Be wary of selling designer copies, e.g. handbags, watches, clothing.
• Take clear photos.
• Write an honest and detailed description.
• Package your items carefully and label well.
• Follow up with your customers. A short email thanking them for their purchase and giving contact details for any problems or feedback will take you a long way.
• Always behave professionally.

Mutual Agreement

The best outcome is one of mutual agreement. If you reach an agreement, an email is sent to the buyer asking them to confirm that the auction will be nullified in one of two ways:

• If they agree: you'll receive your final value fee, the buyer will not receive an unpaid item strike, and the auction will be mollified.
• If they disagree: you won't receive a final value fee, nor will the buyer receive an unpaid item strike. eBay then closes the dispute and you can't file another claim for that item. In this unsatisfactory situation you can either pursue the buyer yourself or just accept the outcome as a loss.
• If the buyer doesn't respond after 7 days, then you can receive the final claim value but unfortunately the buyer gets away with it.

Closing the dispute

If the buyer doesn't respond, or responds unsatisfactorily, then you can choose to close the dispute on the condition that the buyer has responded at least once, or not at all within 8 days.

When you go to the Dispute Console page, you'll see all disputes that are still open. It can take up to 10 days of buyer silence before eBay allows you to close the dispute though.

If you do choose to close the dispute, you must select a reason for doing so.

• 'We've agreed not to complete the transaction' - The buyer doesn't receive an Unpaid Item Strike and you receive your Final Value Fee credit.
• 'We've completed the transaction and we're both satisfied' - No credits or strikes, everything has been resolved.
• 'I no longer wish to communicate with or wait for the seller' - You get a credit, the buyer gets a strike.

You only get 60 days to complete your auction. After that time, eBay closes it for you. If automatic closure takes place, then the seller does not receive a final value fee credit and the buyer does not receive an unpaid item strike.

Workbook

Set up some customer service tools to help you avoid having to carry out an unpaid item dispute:

• Consider adding a signature to your emails with a telephone number and customer service hours. This makes it very easy for the customer to initiate personal contact if they are having problems.
• Add a message tag to your computer so you can see whether or not a tricky customer is actually reading your emails. Online company MSGTAG provide a message tag tool for $19.95. Once you add that to your desktop, you'll receive an email notifying you of the time that email reached its destination and another message noting the time the recipient opened it. Alternatively, if you use Microsoft Outlook, then you can use the message status tool on that.

Useful Links

• eBay Unpaid Item Process
• eBay Unpaid Item Policy
• Message Tag
  

In next week's newsletter we'll be taking a look at Internet Fraud and some solutions should it arise! See you then.

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