Getting Paid: The Dark Side of eBay
You don’t auction stuff off for your health. Find out what it takes to get paid using eBay.
By Toby Malina
You give things to charity out of the goodness of your heart. You auction your used stuff off to make money. But what happens when the check in the mail never shows up? On today’s “Call for Help,” I’ll tell you which payment options you should accept for your online auctions and what to do if a check bounces or a buyer backs out.
Payment options
Online payment services
You’ll get your money fast with an online payment service. PayPal, for example, offers several types of accounts, including free personal accounts for sending and receiving payments. In most cases you’ll need to upgrade to a pay service if you want to accept credit card payments. Though PayPal seems to be the most popular, you may want to look into Western Union Payments and CheckFree Auction Payments.
Money order or cashier’s check
A money order or cashier’s check can only be payable to a specific recipient — you! It’s like getting cash in the mail without the risk.
Personal check
Buyers love paying with personal checks, but they’re more of a risk for sellers. You need to wait for payment, deposit the check, and wait for it to clear before shipping an item. If a check bounces, you could get hit with bank fees, which may be hard to pry out of the buyer.
If a check bounces, contact the buyer immediately and give him or her a chance to pay via PayPal or overnight mail. If the buyer doesn’t make good, bomb’s away with the negative feedback.
Cash
Just say no! Cash doesn’t leave a paper trail, making it a risky option for buyers. I know you’d never sell stolen property, but the people bidding on your stuff don’t know that.
Cash on delivery (COD)
When the shipping company delivers your goods, the buyer produces payment. The buyer needs to be at home when the delivery guy shows up and must have an accepted form of payment on hand, causing a hassle for everyone. Why bother?
The waiting game
Responsible buyers respond shortly after an auction closes and soon pay via an online payment service or contact you in response to your invoice.
If you don’t hear back from someone within three days, send a friendly reminder with “Reminder” in the subject line. Politely remind the buyer that he or she was the high bidder in your auction, the date of your expected payment, and the payment methods you accept. You should also check users’ feedback to scan for negative patterns. If they seem like good buyers, be patient. They may have a problem on their end. Life happens.
If you don’t hear back within three days of sending your reminder email, consider your buyer a problem child and send a firm but diplomatic final reminder.
When buyers balk
When a buyer backs out, use your best judgment to assess the situation. If the reason seems legitimate, don’t go for the jugular. Only leave negative feedback when someone flagrantly backs out.
If your auction had several bids, consider making a Second Chance Offer in which you offer your item to any of the underbidders. Just don’t jump the gun. Make every effort to work things through with the original buyer first. If the original winner steps forward, you’ll have an awkward moment explaining why you sold your item to someone else.
Begin the Second Chance Offer process from your auction page or My eBay page. You won’t need to pay additional insertion fees and a new final value fee will be assessed when a buyer accepts your offer. (You can also use Second Chance if you have an identical item you want to sell.)
No more Mr. Nice Guy
A time may come when you can’t sell your item to another person and you still don’t hear back from the original bidder (or get an email that says something like “cancel my order”). Since you’ll probably get pretty ticked off, consider filing a Non-Paying Bidder Alert.
A NPBA gets eBay formally involved. You can file one eight to 45 days after the close of an auction and it’s mandatory if you want to collect a Final Value Fee credit.
Go to the Non-Paying Bidder Program page armed with your user ID and item number.
File your complaint.
Once you and your buyer receive notification, eBay requires you to wait 10 days before filing for a Final Value Free credit. Buyers often pay or contact you within this period.
If you work things out, go back to the NPBA page and click the Non-Paying Bidder Warning Removal link.
EBay will suspend buyers with three alerts. You can also ask eBay for the buyer’s contact information on the Find Members page if you feel comfortable calling the buyer. Again, I’m sure you’re a nice person. Never threaten, stalk, or harass other eBay users.