Sellers are definitely in a stronger position than buyers. We are the ones in charge of the merchandise and we don’t need to ship until we are sure we have been paid. As well, credit cards and the intermediary services like PayPal make it so much safer than in the past.
If you happen to find yourself involved in a fraud dispute, in addition to notifying the auction site, you may also want to use the services of the following agencies...
National Fraud Information Center http://www.fraud.org/welcome.htmIf you have a problem with a seller or vendor, a complaint to the BBB may have some effect. They are the best-known “policing” organization. There are lots of consumers who check with them before doing business with a company.
If there is a bad report from the BBB, many customers will back away and most companies know this. Therefore, no legitimate outfit wants bad information in their files and many will go to great lengths to prevent a bad reputation -including dealing fairly with you.
Postmaster General (if you used the Post Office) 800-275-8777All of the above agencies handle fraud complaints in the same general way. Since we are dealing with Internet fraud, correspondence is handled on the Net. If you are ever involved in this unpleasantness, you will first be asked to fill out a form. Then you will be assigned a case number. The agency will ask you for specifics and generally no action will be taken until 30 days has elapsed. After your form is filed, they will notify the opposing party.
If there is fraud involved, the law enforcement agencies may or may not take legal steps. They are secretive about their criteria for legal action. If you are the one and only person to complain, I realistically doubt that much will be done. However, the power of reporting someone to a law enforcement agency can be tremendous. Just filing a complaint may accomplish everything you desire.
One important tip is to save every bit of correspondence you have from and about this person. I have a separate account just for my auction selling and I save e-mail for weeks, sometimes months.
Bottom line?The best protection is the one you create yourself.
Consider this “fraud” tactic. Sometimes a buyer is contacted by someone who falsely represents themselves as the seller.
Like a masked bandit...
... he (or she) directs the buyer to make payment to a certain address. Obviously, if you have sold your prized collectible to Sandra, you don’t want her sending her money to the wrong seller. So respond promptly to your buyer before someone else can solicit their money. If a buyer gets two messages requesting payment, she is going to contact the auction site to see who is legitimate.
There are really only three ways that you can be defrauded by a dishonest buyer...1) Non payment -- You can protect yourself from this scam if you carefully choose your payment options. If you do accept checks, allow plenty of time for the bank to clear them. Be sure to make it crystal clear to your buyers that this is your policy. Once the bank has informed you that the check is good, you are protected.
2) The buyer claims they never received their items - This possibility is why I am so ferocious about some sort of tracking system with any packages I send. On the rare occasion that the buyer wants a really cheap mailing option that doesn’t qualify for tracking, I send him an e-mail stating that this is his risk, not mine. And I save the e-mail. My e-mail system also allows for a confirmation that the recipient has received my e-mail. I do this for all auction correspondence.
3) The buyer claims the merchandise was damaged -- This issue is the toughest to handle. Perhaps it really was damaged, in which case we have an obligation to satisfy the buyer and then deal with the carrier.
Preventing fraud in this area depends on your guarantee. Do you have one? What are its terms?
With a more expensive item, you can take a photo of it, along with the shipping label before you send it. For less expensive items, you will have to decide if it is worth the trouble to you.
One seller told me he has an occasional fraudulent return where the buyer will insist that it was damaged when he knows it wasn’t. But he is making so much money that the seller states it isn’t worth his time to argue. He simply substitutes or returns the buyer’s money.
Your best protection is good records so that you can prove that you are telling the truth. There are many more buyers defrauded than sellers so the sympathy leans toward the buyer.
Key point? Protect yourself.