posted on January 8, 2011 10:04:05 AM new
I was chatting with a customer the other day who sells new small electronics on eBay. They were telling me that they had 2 INADs filed on them after the holidays. The buyers never notified the seller of the problem, and the complaint wasn't because they didn't describe the item accurately, but because the buyer assumed it featured something that it didn't. Get this... one was a DVD player. The buyer thought they were getting a Blu Ray when the listing never mentioned it being a Blu Ray. How is that even a legit INAD? Worse yet, the seller received an opened box without some of the original contents... owners manual and remote. So, now they have an opened box item missing vital parts and they are being forced into refunding everything including shipping.
Obviously, this raises some concerns.
First off, does eBay even review INADs for legitimacy or are they a computerized rubber stamp to return an item?
Second, when a buyer filed a complaint without any contact to the seller, how can a seller legitimately have the opportunity to resolve an issue without negative effect to their eBay account? Does eBay review this too?
I know it is the sign of the times, especially in such a volatile economy. Everyone wants everything for nothing. No wonder China is stealing our industries.
[ edited by shagmidmod on Jan 8, 2011 10:04 AM ]
posted on January 8, 2011 10:20:58 AM new
I dont recall how EBAY handles complaints,but Paypal wants buyer and seller to resolve the issue first before Paypal steps in.
As for Ebay,I think number of cases filed against the seller does count toward the seller!
Ebay does listen to both sides,make sure your customer the Ebay seller communicates with buyer via Ebay so Ebay can read the emails.
If his buyer returns a DVD player without remote and manual,I hope he has kept the box and the postage which should show the weight of the package shipped.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on January 8, 2011 10:26:46 AM new
I know it is the sign of the times, especially in such a volatile economy. Everyone wants everything for nothing. No wonder China is stealing our industries.
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How can Chinese sell something for nothing,inflation is a big problem in China,many people dont have a place to live, renting a room in big city costs Chinese $5000 a month,buying a house costs Chinese $3 million with a 50 years mortgage ?
Cooking oil is like US$7.20 a bottle,think if you are a street hawker selling fried donut,how much oil do you need?How can you justify raising prices on your donut when most of that cooking oil is not included in the finished goods?
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on January 8, 2011 11:40:47 AM new
Your friend/customer is selling in a very high risk category.
Unfortunately he is vulnerable to this type of theft and should be following it up with EBay top brass not some underling in an almost non-existant Customer Service Department(that label doesn't really apply to EBay). He should also be reporting the theft to Police Departments etc.
EBay have the worst Administrative procedures I have ever seen and someone needs to hold them to account.
This man should not be selling small electronics on EBay if he wants a trouble-free business, he should find another outlet for his wares.
Finally....I really don't see what this has to do with China but I guess they are the current target that we are inclined to blame for everything.
posted on January 8, 2011 01:07:36 PM new
What can Ebay do?
How can a third party know who is telling the truth?
Even weight/postage paid or taking a picture of the content before sealing the package ?
One can always use more padding to add weight/postage to the package ?
If your customer is making good money selling electronics,then chalk it up as the cost of doing business.
*
There is no 'Global savings glut',only wild horses and loose bankers.
posted on January 8, 2011 02:23:51 PM new
All customer returns should be handled by two people. Both should review the material returned, and note any missing items.
If need be, they can complete a notarized statement as to contents and condition of the returned items. This would have more validity with eBay, postal, and police claims.
posted on January 8, 2011 02:53:53 PM new
Anytime you sell high end items,there is a chance someone will play switch-a-roo!
Individuals sellers dont have much clout with credit card issuers.
if you still have the original invoice or you have an account with an established wholesaler,you stand a better chance.
Such is the perils of 'playing retailer'!
*
There is no 'Global savings glut',only wild horses and loose bankers.
[ edited by hwahwa on Jan 8, 2011 02:54 PM ]
posted on January 8, 2011 03:12:58 PM new
They know the risks involved, and the reality is that I have raised eyebrows at people returning items at other stores too. Like the woman returning the scratched up teflon coated frying pan because food stuck to it. Well, duh... scrape it with a fork or knife, eat the fallen teflon shards, and then claim the item is defective.
If you sell just about any goods, whether through your own website or not, you are susceptible to problems. I truly believe that you have less chance of getting screwed on a chargeback through Paypal than through your own processor. In fact, I have had my share of issues with processors who take money out of our account when they are not authorized to do so. I just filed a complaint with our Attorney General's office over this very problem. Our CC processor isn't supposed to charge us an annual fee, but for 3 or 4 years now they have tried to do it.
Being a "middle guy" you are always at risk of getting hit by your source or your customer.
As for my China comment, it was directed at providing cheap garbage. People expect dollar store prices for high quality items. If they buy something they thought was high end, but get a cheap knock-off they get bent out of shape. How can any reasonable person expect to get a $400 item for $20 on eBay? It just doesn't exist... which also leads me to point out the Alibaba ads circulating on eBay. Gee, where does most of eBay crap come from?
There are plenty of items made in China that have excellent quality... but at what costs? Every American job lost is a potential customer gone. I don't have Chinese buyers busting down the door to buy my items. 95% of my customers are in the USA.
[ edited by shagmidmod on Jan 8, 2011 03:15 PM ]
posted on January 8, 2011 04:24:40 PM new
I have been saying this for years,Paypal is still a better deal for small sellers who sell in cyberspace,esp Ebay,as Paypal understands how it works.
I used to have a merchant account and they tried to charge me 99 dollars annual fee and each year I have to ask them to remove it.
And the statement which comes in every month,all these MC/Visa tiered rates,discount rate varies based on the kind of card your customers use,those which earn points carry a higher rate.
And then there is a monthly statement fee of $5.
Charge back fee is higher.
And if you lose a chargeback,your merchant account processor can dip into your bank account.
And there is a minimum activity fee,if you dont meet it,there is a 25 dollars charge.
Now Fluffy will soon show up and tell us it is such a bliss to open an account ,but buyer beware,some are not that reputable.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on January 10, 2011 11:14:55 AM new
When the bank bailout happened, I closed our bank accounts at Wells Fargo and moved everything to my local credit union. I save almost $150 a year in monthly fees. I am planning on looking at the CU rates for merchant processing. Though it is handled through a different company I think I may have less headaches with merchant processing.
I have had two processors in 8 years. Both have tried to tack on extra fees a year or two after you sign up. It is as if they just create fees to compensate for the "great rates" they give you. The most recent thing they are doing is adding PCI fees. They claim it is a fee assessed by the credit card companies (MC/Visa), and they pass it on to the merchant. My agreement clearly states, "no annual fees". To me, a PCI annual fee is still an annual fee.
posted on January 11, 2011 08:39:07 AM new
Well, I guess it's time to show up.
Unfortunately, hwahwa is behind the times. You don't have to get a merchant account that has all those fees. Mine doesn't.
Merchant card providers that work with Yahoo Stores are used to businesses that only do $500-$2000 a month, so no minimum activity fees.
I truly believe that you have less chance of getting screwed on a chargeback through Paypal than through your own processor.
You are entitled to believe that. But consider this: With your own processor, you don't have the enforcement arm of the company (eBay Trust & Safety) threatening to yank your eBay account if you don't jump through their hoops. eBay and PayPal work hand-in-hand, and at the same time they claim they are separate companies when it suits them to do so. Is PayPal really a better deal for merchants?
posted on January 11, 2011 11:13:06 AM new
I'm not comparing eBay transactions, but rather website transactions where payments are processed through paypal vs. your own processor.
In both cases, you have to CYA with documentation, proof of shipment, etc. The issue you have with a processor is that they don't generally offer a specific policy regarding chargebacks and how you can beat a chargeback. What they do is review each individual case. Paypal at least will cover you if you follow their policies.
I have used paypal since it was X.com and I have only lost two chargebacks. That was when paypal didn't cover unconfirmed addresses. I altered my shipping policies years ago and since following PP policies I have yet to ever have an issue with them. I have had several chargeback attempts, but I always followed the rules and got my money out of it.
PP is more expensive, but their system is fairly easy to use, I can print labels directly from their system, and they provide tracking to the customer. Though not a perfect world, I still find PP safer than a CC processor.
[ edited by shagmidmod on Jan 11, 2011 01:14 PM ]
posted on January 11, 2011 02:18:47 PM new
Your customer's credit card issuer no longer decides who wins the dispute,it is now VISA/MC.
There is also Propay ,there is annual fee and when you transfer fund to your bank account,there is a small fee while for Paypal,it is free.
Many retailers just cringe when you take out your credit card to make payments,can you imagine going to a 99 cents store and buy one and pay with your credit card?
I used to have a shop on Yahoo shopping,I left last year,but I recall on the Yahoo forum,one store was trying to get enough stores to join in getting 1% discount rate from some provider.
1%? I thought only the likes of Target and Walmart pay 1%??
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on January 11, 2011 03:22:19 PM new
Credit Card COs. will honor the terms that you specify, which deal with returns and refunds - as long as your terms are stated and comply with current laws.
I always include a statement of my terms regarding returns and refunds on the back of the invoice which is included with the order. This is the same statement which is part of the item description, or available at checkout on my own store.
ProPay charges 50 cents to transfer funds from credit card payments to another account. They do issue their own debit card which you can use, rather than transfer cash to another account. There are no minimum sales or inactivity fees.
