Protecting Yourself Against Fraudulent Sellers

When you're bidding for and buying items on eBay, you're pretty much in "buyer beware" territory. You agree to buy an item, almost sight unseen, from someone whom you know practically nothing about. You send that person a check and hope and pray that you get something shipped back in returnand that the thing that's shipped is the thing you thought you were buying, in good condition. If you don't like what you gotor if you received nothing at allthe seller has your money. And what recourse do you have?

Checking Feedback

The first line of defense against frauds and cheats is to intelligently choose the people you deal with. On eBay, the best way to do this is via the Feedback system.

tip

If you're new to eBay, you can build up your feedback fast by purchasing a few low-cost itemspreferably using the Buy It Now feature, so you get the transaction over quickly. It's good to have a feedback rating of 20 or better before you start selling!

Next to every seller's name is a number and percentage, which represents that seller's Feedback rating. You should always check a seller's Feedback rating before you bid. If the number is high with an overwhelmingly positive percentage, you can feel safer than if the seller has a lot of negative feedback. For even better protection, click the seller's name in the item listing to view his Member Profile, where you can read individual feedback comments. Be smart and avoid those sellers who have a history of delivering less than what was promised.

Getting Help After a Bad Transaction

What do you do if you follow all this advice and still end up receiving unacceptable merchandiseor no merchandise at all? Fortunately, eBay offers a Purchase Protection Program for any auction transaction gone bad. This Purchase Protection Program is the final step in a long process with an equally long namethe Item Not Received or Significantly Not as Described Process.

You can initiate the process 10 days after the end of an auction by going to eBay's Security & Resolution Center (pages.ebay.com/securitycenter/), checking the Item Not Received option, and then clicking the Report Problem button. eBay will contact the seller on your behalf, and if the problem isn't resolved within 30 days, you can then file a claim under eBay's Purchase Protection Program.

The Purchase Protection Program insures you for up to $200 on all items with a final value greater than $25. (There's also a $25 deductible on each claim.) To get your money back under this program, you have to go through the Item Not Received or Significantly Not Described Process, and then (after 30 days have passed with no resolution) close your dispute and select "end communication with the seller." You'll then be presented with a link to the proper claim form, which you fill out as instructed. Sometime in the next 45 days you will be contacted by the eBay claims administrator; if your claim is approved, you'll be sent a check for the disputed amount (less the $25 deductible, of course).

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eBay makes its money by charging sellers two types of fees. (Buyers don't pay any fees to eBay.) Insertion fees are based on the minimum bid or reserve price of the item listed. Final value fees are charged when you sell an item, based on the item's final selling price. Fees are typically charged directly to the seller's credit card account.

Fortunately, the vast majority of eBay sellers are extremely honestso you'll probably never have to take advantage of this program. Most transactions are good transactions!