Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue June 12 2012 20:41:06

Do Fraudsters Like eBay's Push for One-Day Handling?

By: Ina Steiner

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A longtime seller wrote in with a report about eBay's new requirement that Top Rated Sellers ship items within 24 hours. He said he was told by a low-level source inside PayPal that the payments provider is not happy about the new eBay Marketplaces policy because of a rise in chargebacks caused by an increase in fraudulent transactions.

The seller wrote that, according to his source, "since eBay put the new policy in place, scammers have decided that they can order goods, get them shipped same or next day, receive them a few days later and vanish.... then a few days later come the chargebacks from the legit card holders. Its increased now, because now eBay "forces" you to ship within 24 hrs to maintain your dealer rating(s) and a large number of dealers now ship within that time frame."

While that's an unconfirmed report, the seller raised an interesting issue. Is it better to wait 24 hours before sending items to give PayPal's fraud detection system adequate time to sniff out scammers who are using stolen accounts? Especially in certain categories, such as electronics, jewelry and high-end designer clothes and accessories?

It is certainly true that eBay places certain restrictions on short-duration auctions to combat fraudulent sellers. For example, to offer a 1-day listing, you must have a Feedback score of at least 10, and sellers have reported that they are restricted from listing certain designer clothing in the auction format for less than 5-day duration.

Let us know if you've been receiving a larger amount of chargebacks for unauthorized usage than usual and if you think eBay might change its policy in certain high-risk categories.




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by: TeddyElectron This user has validated their user name.

Tue Jun 12 23:22:49 2012

I was told to wait three days on questionable transactions because it may take time for the credit card companies to get back to PayPal to initiate a chargeback.

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This user has validated their user name. by: Ric

Tue Jun 12 23:45:14 2012

eBay is known across the Internet as the site where scam artists can readily obtain free merchandise and in some cases even obtain assistance from the willing accomplices at eBay customer service.

PayPal is late to the party on this issue.



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by: Bloggo This user has validated their user name.

Tue Jun 12 23:50:45 2012

Fraudsters love eBay. Period.

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This user has validated their user name. by: thehosst
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Tue Jun 12 23:51:46 2012

One day handling is an open door for fraudsters, but then again, when has eBay care about sellers having the money on hold by PAYPAL, I not only have the 2 days handling but also make it very clear in the product description, checkout, emails and any way I can that is 2 days. We have abusive people trying to open case because they purchased on Friday afternoon and want it on Tuesday. eBay had a glitch moving all our 2 day handling to 1 day and really created a lot of issues for us. When is eBay going to learn that what makes eBay work is the offerings, not the demand, and they insist in creating idiotic policies and changes to push sellers away. Amazon demands sellers to ship fast but Amazon ships after 5 days, is always the giant corporate minds who mess up so much. eBay please, there is something call, echecks, shipping address changes, credit card authorization delays and also fraudsters, get it together.  

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by: punky This user has validated their user name.

Tue Jun 12 23:53:23 2012

I've only had one chargeback so far from a fraudulent credit card purchase due to one-day handling.  Luckily, I was protected under eBay's Seller's Protection and was reimbursed from PayPal.  However, the story doesn't end there, the cardholder initiated another chargeback for the identical transaction 2 months later.  I contacted PayPal after receiving notification and inquired as to why another chargeback could possibly be initiated again as the cardholder received a credit back to their card.  PayPal actually fought the chargeback and closed the dispute. I do believe that the one-day handling policy can and will cause problematic situations for sellers.

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by: Sunflower This user has validated their user name.

Tue Jun 12 23:56:55 2012

I have had 2 expensive purchases made in the past week. Both were made on a Saturday and both wanted expedited shipping. Both buyers had zero feedback and had recently become eBay members. On Sunday, one buyer emailed and asked if I had shipped which raised a flag but I phoned PayPal and was assured I would be seller protected. On Monday afternoon-after I shipped both packages, I received alerts from PayPal that both of these transactions were under review and not to ship until payment had cleared. I quickly looked up the addresses on Google and found that they were both separate forwarding companies. Luckily I was able to go to the post office and although I had filled out the new Intercept notice for the post office and was willing to pay to retrieve both items, I did not have to as they were still at my local post office. I was told by the post office that as long as the items had not left the state, I would not have to pay the intercept fee. Upon retrieving my items, I went home and phoned PayPal again and they said I should not have shipped. Go figure, eBay wants fast shipping, but no one wants to be responsible when there is no actual payment.
Long story short, neither payment went through but at least I have my items back.  

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by: Ed This user has validated their user name.

Wed Jun 13 00:44:48 2012

Looks like another thing that ebay jump to do things with out a clue of the problems from the decisions.

Every one knows that ebay has no fraud and things run as smooth as a clock. Between the DSR and Feed Back system and the 1 day shipping fraudsters can have a party.

Unhappy Top Rated Silver Power Seller waiting for big changes

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by: blaumann This user has validated their user name.

Wed Jun 13 00:49:14 2012

I am amazed that people don't get what this one day shipping is about. It and the other two requirements for trs are just a way for ebay to get rid of the 20% discount for thousands and thousands of sellers. Ebay will grab huge $$. They are looking for money eagerly as their recent loosening of the gun parts policy shows.  

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by: Brused This user has validated their user name.

Wed Jun 13 00:49:20 2012

Thanks for the story, Sunflower.  What a clear illustration of the poor judgement rendered by eBay.

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by: Brused This user has validated their user name.

Wed Jun 13 00:51:45 2012

Blaumann:  I suspect you are right.

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by: comet This user has validated their user name.

Wed Jun 13 00:57:41 2012

I have not had any "chargebacks" but several times I have been "told" by PP that it is OK to ship   and then AFTER I ship I get notices that this is an "Unsafe Transaction".  And not always in a short period of time either.  

Makes you wonder.  And almost every time I ship within a few minutes--just by chance--of close of a sale I have something go "wrong" with the sale.  Like-the buyer claims she purchased in error---that some "search" forced her to my toddler item but what she really needed was something completely different--and apparently the wicked Search Feature FORCED her to click Buy It NOw and PAY for the item TOO!  

Now THAT'S a powerful Search feature!  

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by: justpassinthru This user has validated their user name.

Wed Jun 13 00:58:20 2012

This is one seller who won't experience the problem.  I tried Ebay's new 1-Day Wonder Plan for 60 days and my sales declined 35%.  

Packaging to meet USPS requirements for parcels using Delivery Confirmation required a 25% price increase in my $5 product, and it was more than the market would bear.  

My sales took a 25% dump the last time I followed Ebay down their garden path, to the land of Free Shipping.  I was gullible enough then to believe Ebay management when it claimed they'd soon introduce a method for sellers to reduce the shipping price on Free-ship items for customers who purchase multiple items.  Ebay didn't keep its promise; 18 months later and no such method had materialized.

I took a long look at the situation and decided to do what my conscience and common sense dictates.  Free shipping screws the customer who buys multiple items from the same source and I no longer participate in that fleecing.  I only ship $10+ orders with delivery confirmation thus saving my customers 25%.  

I think this whole 1-Day routine is nothing more than another John Donahoe scheme to compete with Amazon...that competition he denies participating in.

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by: Cowbell This user has validated their user name.
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Wed Jun 13 01:07:53 2012

To comply with 1-day handling would cost us more than the discount. Not worth it.

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This user has validated their user name. by: Ming the Merciless

Wed Jun 13 01:12:27 2012

The Ho re invented ebafia to attract fraudsters!

He and his socioathic coterie decided that they could further monetize their operations by constructing additional risk for sellers by creating a policy framework that encouraged and supported e shop lifting, credit card fraud, and mail fraud.

After all, he reasoned, why shouldn't our sellers have the same risks as brick and mortar stores? Shoplifting? Sellers take the hit. Credit card fraud? In most cases, the seller takes the hit. Mail fraud? The seller takes the hit.

The best part of this scheme is that ebafia DELIGHTS their criminal buyers by allowing them to return over and over again under dozens or hundreds of IDs because ebafia doesn't verify buyers.

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This user has validated their user name. by: Ming the Merciless

Wed Jun 13 01:19:36 2012

WE can count on ebay and PayPal to rapidly revise various policies to ensure that sellers take the hit in virtually all chargebacks resulting from 1 day shipping.

I think the courts would strike down mandatory 1 business day shipping and 3 or more day chargeback liability.

This criminal enterprise will continue to prey on sellers and steal our money until market forces or the courts compel them to change.

Despicable policies created by stupid and despicable people.

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by: expertbenefits This user has validated their user name.

Wed Jun 13 01:30:16 2012

Scammers are usually in a huge rush. Last year I sold an 18k gold chain from a woman's id going to a man out of state. I asked her why she was in such a rush to get a really feminine swirl chain to this man. She made up some story that made no sense. I checked the address and it was going to some trailer park in NM in the middle of nowhere. I called paypal, there was no apparent problem. I found the person's phone I could not get it from ebay or anyone and it turns out that an employee of their church stole the card. This is why they were in a huge rush. Things like this have happened twice recently. They are in a huge rush when they use fraudulent cards and what they say does not ring true and they ask if you have shipped it yet on a Sunday like someone said maybe a few times. Did you ship yet> a few times in the day same is a sure sign..why the rush? either they are narcissists or they are scammers.  

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by: Bloggo This user has validated their user name.

Wed Jun 13 04:06:20 2012

My guidelines for selling on eBay are simple.
If I am required to do something, I will.
If eBay ''suggests I do something,I won't  

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by: JustTheFacts This user has validated their user name.

Wed Jun 13 09:54:07 2012

ebay NEVER does anythng unless ebay benefits from it.

My guess is that the one day shipping is actually ebays way of trying to get around chargebacks.

If item has already shipped before the chargeback won't it be the CC who takes the HIT if it turns out to be faudulant and not ebay or paypal?

ebay knows very well that they have opened the door and made it VERY lucrative for every sort of fraud thnkable, so it seems to be they are now trying to help ensure THEY do not lose money because of it.  

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This user has validated their user name. by: Rexford

Wed Jun 13 10:07:58 2012

Yet another example of the MBAs at eBay not thinking something through.

These are MBAs who have not sold the first item on eBay.  Clueless!

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This user has validated their user name. by: Marie

Wed Jun 13 10:19:10 2012

@justpassinthrough

How can 1 day handling cause you to lose 35% of your business?  You may be blaming the downturn in sales that many sellers are experiencing on the wrong reason. There are significant problems currently on Ebay and many sellers are experiencing sales issues due to that.

How did the 1st class parcel requirements cause you a 25% increase in packaging?  I may be able to help you with this one if you describe it to me. It shouldn't have caused this type of problem for you, so there may be a misunderstanding.

*********

As for me, I'm seeing an uptick in chargebacks since the 1 day handling.  I've had as many chargebacks in the past 60 days as I've had in the 2 previous years.

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