A closer look at eBay's new resolution process

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eBay’s new dispute resolution, announced in Seller Release 2, for buyer claims has been running since April this year, and some buyers and sellers will have already experienced the process.

The new eBay dispute resolution process is for buyers who claim non-receipt or SNAD (significantly not as described). It will eventually replace the existing PayPal resolution process and is due to roll out to all UK users before the Christmas selling season. However it’s not rolling out to all eBay sites so overseas buyers may still use the PayPal process for some time in the future.

So what’s better about the new system? Well firstly (although PayPal won’t thank me for saying this) a PayPal dispute almost invariably goes in the buyer’s favour. The eBay resolution process can involve a customer service rep reviewing the case and in some instances eBay may refund the buyer without re-claiming the money from the seller.

Part of the claims process can include proving to eBay that the item was as described, for instance if a used item had damage which was described or even shown in a photo on the listing. If the buyer’s complaint concerns a defect that was clearly described in the listing eBay may dismiss the claim outright.

If eBay do rule that the buyer is due a refund they’ll insist that the item is returned and the buyer must pay the return postage, although eBay may occasionally pay the return carriage costs.

Sellers have often complained that as soon as they had a PayPal claim they’d pretty much have to write the funds off. In the future, with the new eBay resolution process, it looks as though they have a much better chance of fighting their corner with frivolous claims being dismissed.

22 Responses

  1. Chris, I understand what you are saying but just because eBay can or does involve a customer service rep in the claim process doesn’t mean they are actually going to do anything that seems reasonable. eBay seems intent on keeping buyers happy regardless of the consequences so I will remain sceptical of this until I see evidence otherwise.

    eBay has also stated once again that regardless of the outcome of a claim feedback is not affected. Winning the claim might not even be worth it if it means you have to close shop.

  2. There have already been instances where eBay have refunded a buyer out of their own pocket without taking the money from the seller. However if you choose to remain skeptical that is of course always a fashionable option ūüėõ

    Personally I’d prefer to deal with any customer service issues before they get as far as a claim, but then I’m fortunate in attracting the more reasonable customers and being reasonable myself we seem to rub along ok.

  3. The prospect of possibly losing the money for your item AND losing the item too is what stops many sellers from listing all but cheap items on Ebay.

  4. Factor a % into your costs and raise your prices, damage in transit, lost in transit and unfortunatelt fraudalent claims all must be factored in…
    bottom line – hike your prices, in the long run, those that don’t will lose…

    just like how we all moan car insurance is too much…since we cover those who claim for expensive contents of car that wasn’t stolen, we ALL must pay a premium, ebay works the same, factor these into your prices, dont factor them in at your peril!

  5. Tracy’s right – B&M shops call it “shrinkage”: shoplifting, damage, put down somewhere in the storeroom and never seen again…. I believe it’s normally about 2%.

  6. The problem is, eBay will refund the buyer out of their pocket and some buyers will irrationally see this is as proof that the item was never shipped, and the buyer will leave a negative saying “Never received, eBay refunded my money” and there is nothing the seller can do.

    The paypal dispute process sucks in that claims can stay open for up to 30 days but this isn’t much better.

  7. The Royal Mail state that goods are not considered lost, and no claims can be made, until 15 working days have passed. It would be nice if eBay took this on board, so that buyers could not claim for lost goods after 3 – 4 days.

  8. I have buyer opens PayPal dispute after 3 days for item 99p + free postage sent by 2nd class. Case esclated in 4th days. Some people really can not tell different between eBay, RoyalMail and seller. They really think we are RoyalMail.

    Roger

  9. #7 have you ever tried making a RM claim….More hoops than a Dolphin training school!

  10. #9 We claim for everything that goes missing Domestic and International. Domestically we claim every quarter using Bulk Mailing & Claims (BMAC) with Royal Mail. They don’t make it easy, but considering the amount of items sold on eBay that don’t turn up, we have to do it.

  11. “considering the amount of items sold on eBay that don‚Äôt turn up”

    The only way to combat that is to use tracked for services. The new Royal Mail Tracked service is best for those with the volumes to justify it.

  12. Problem with Royal Mail Tracked is it a 3 day second class service and does not obtain a signature (it is scanned when sent out for delivery and marked as delivered if not returned to the depot). These are the tracks:

    Track 1 is created at the point of despatch when the item label is generated on Despatch Express, or your own despatch management system.

    Track 2 occurs on receipt at the Outward Mail Centre, and is available by 12.30pm on the day after collection. This track is obtained for all items except pre-sorted direct routed mail.

    Track 3 is triggered when the item enters the Inward Mail Centre and is available by 8.45am on the due delivery date.

    Track 4 marks arrival in the Delivery Office, and is available by 10.30am on the due delivery date.

    Track 5 is an implied track, after the item has been successfully delivered, and is available by 8.30am on the day after delivery.

    So does anybody know will PayPal / eBay accept lack of signature in disputes?

  13. @ Chris, unfortunately, it’s all a matter of cost. On eBay most of our listings are now free p+p and we send these 2nd Class (cheapest option).

    Paypal are always telling us to send things trackable, but even an additional cost of 20p per item sent would cost us £36.00 per day (roughly) or £13,000 per year!

    Since the Royal Mail will ultimately foot the bill for lost items, we don’t see that spending this much extra is a good decision.

    I can’t tell you why we get a higher % of eBay items go missing compared with Amazon/Web orders, but we do.

  14. The prices for tracked items are unique to you, based on the amount you post etc. We currently pay around £2.50 per tracked item.

    I too wonder how eBay/Paypal would treat a tracked item with INR claims.

  15. “Since the Royal Mail will ultimately foot the bill for lost items”… thing is I don’t believe half the items that are “lost” are actually “lost”. While I totally see your point it does seem a little unfair for Royal Mail to cough up for parcels that are either delivered but not to the right person (e.g. it’s sat with a neighbour or in a works mail room), waiting at the sorting office or delivered but the buyer has “forgotten” they received it.

    I’m aware that’s a controversial viewpoint – but I think there’s more than a few “lost” parcels that are actually “delivered”.

  16. #15 NOTHING gets “lost” within the Royal Mail system. It is either delivered to the wrong address and stolen by them or stolen by the delivery person or original recipient. In all cases it’s not lost, someone knows where it is.

  17. Hi All,

    Couple of points:

    1st Point:

    INR is a pain for all sellers.
    We dispatch to the ebay registered address & I am amazed how many people do not keep this up to date.
    We’ve had some arguments with people that allow us to dispatch to their ‘old’ address, then once dispatched change heir ebay registered address, hence saying INR.
    Luckily, we keep all emails for a fixed period & even though we can see the buyer has changed their details, they still deny it……………

    We have now changed to new waya. Once a buyer buys something the order acknowledgement & payment received now include the dispatch postal address in the email. So buyers know where the item is going & must tell us if it is wrong.

    2nd Point:

    We have set up emails to send to buyers that say INR & if after a period continue to say the same, & before any refund/replacement we send them an email, saying they have to send us an email via the item listing/via ebay messages, saying they have not received the item & will if it turns up, contact us & return it.

    Beleive his, when I say, you will be surprized how many claims for INR stop here.
    Probaly having something to do with ‘putting it in writing’……………..

  18. My items are all low value and recorded delivery is just not an option. I had a little ‘Certificate of Postage’ stamp made (free from Vistaprint) and stamp that on the outer jiffy. I can count on one hand how many ‘go missing’ in a year.

  19. @15 I don’t believe half the items are “lost” either Chris, and yes, it does seem a little unfair on the Royal Mail. But, if the buyer states the item did not arrive, and we do get them to sign a form to back this up, we have to presume it didn’t.

    @17 You can call them on 0845 601 5407 or email [email protected]

  20. Always amazes me how Mr Wong and his fellow countrymen‚Äôs parcels get ‘lost’ so often. Closely followed by Johnny Student at the Halls of Residence.

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