Why it’s too Dangerous to Sell on eBay May 21, 2008

Sellers on eBay are vulnerable now more than ever to buyer abuse thanks to eBay’s ”no negative feedback” policy installed May 19, 2008. The new policy enables only sellers to receive a negative feedback.

Have at it buyers! You are now free to post false, inaccurate, misleading content without recourse — and add insult to injury! Yes, in addition to posting insults, buyers can simply tell eBay that an item is “not as described” — this process penalizes sellers by withholding PayPal funds during the investigation.

The following scenarious illustrate how dangerous it is to sell on eBay:

SCENARIO: Buyer clicks BUY NOW or BIDS and wins an auction (contract of sale). Buyer writes seller to say that he “purchased an item in error” and requests that the seller cancel the sale (tries to renege contract).

OPTION #1: Seller says “no” and enforces unpaid item:

• POSSIBLE RESULT 1: seller is vulnerable to negative feedback; does not get paid.
• POSSIBLE RESULT 2: seller is vulnerable to negative feedback; however seller may get paid without further incident.
• POSSIBLE RESULT 3: seller is vulnerable to negative feedback; and may get paid, but may suffer penalization for “item not as described” or other possible false violation such as “box was empty.” PayPal withholds funds. Seller loses product, seller is not reimbursed for shipping

OPTION #2: Seller says “okay” so as to avoid a negative feedback”:
Seller does nothing. Just lets the sale slide and does not file unpaid item process:

• RESULT: seller is vulnerable to negative feedback because buyer is able to leave feedback (and yet buyer hasn’t paid).

Seller completes mutual agreement for an unpaid item:

SCENARIO 1: “If the buyer confirms the seller’s statement about mutual agreement not to complete the transaction, the buyer will not receive an Unpaid Item strike and the seller will receive a Final Value Fee credit:

• POSSIBLE RESULT #1: seller is vulnerable to negative feedback because buyer is able to leave feedback (and yet buyer hasn’t paid); however, seller gets final value fee commissions refunded.

SCENARIO 2: “If the buyer disagrees with the seller’s statement on mutual agreement, the buyer will not receive an Unpaid Item strike and the seller will not receive a Final Value Fee credit. The dispute will be closed immediately after the buyer responds and the seller will not be eligible to re-file an Unpaid Item dispute for that transaction.”

• POSSIBLE RESULT #2: seller is vulnerable to negative feedback because buyer is able to leave feedback (and yet buyer hasn’t paid). Seller also now must unfairly pay consequences of final value fee commissions

SCENARIO 3: “If the buyer does not respond to the email or pop-up message within 7 days then the seller will be able to close the dispute. The seller will receive a Final Value Fee credit and the buyer will not receive a strike.”

• POSSIBLE RESULT #3: seller is vulnerable to negative feedback because buyer is able to leave feedback (and yet buyer hasn’t paid); however, seller gets final value fee commissions refunded.

It’s clear to see the sellers have no real options!