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Sun Dec 10 2023 15:15:31

Arbitration an Option When eBay Sellers Hit a Brick Wall

By: Reader

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Dear Ina, 
I had a situation earlier this year that concerned filing a notice of dispute with eBay that ultimately wound up in arbitration. I wanted to share my experience with your readers to help highlight this dispute option. It is available to sellers whenever they seek restitution from eBay on a legitimate disagreement where eBay CS agents can't or won't provide relief. 

My issue was with three INR cases (Item Not Received) opened against us in 2022. According to eBay policy sellers need to provide valid tracking numbers within three business days from the date the INR case was opened. In these three cases eBay improperly closed them early refunding the buyers. In one instance they closed the case in the buyer's favor within a few hours of it being opened. 

We appealed each case arguing it was prematurely closed in violation of eBay policy and were denied each time with the standard "we failed to receive valid tracking info from you" reply that ignored the fact that our case was closed prematurely.

Our next step was to contact eBay directly to explain our case and seek relief. It seemed pretty clear cut, the times the cases were opened and later closed with a refund are documented in the eBay system. For all three cases I was seeking reimbursement of about $60.

What I didn't expect was the eBay CSR's either didn't understand their own eBay policies or (unbelievably) couldn't compute what the third business day would have been. I spent several hours going round and round with them and getting nowhere. In one case we were told to expect a refund that never materialized. I tried my best with them but finally I gave up in frustration.

My next step per the eBay User Agreement was to file with eBay a notice a dispute. I filled out the proper form and attached my documented evidence showing the three cases were all closed prematurely. Per the instructions I mailed the form to eBay via certified mail. 

The user policy states eBay will reply within 30 days of receiving such notice. After waiting two months I had received no reply from eBay. A year prior I had also filed a notice of dispute on a separate matter where again I received no reply. I didn't follow up on the earlier notice of dispute, but this time I forged ahead and proceeded per the User Agreement to initiate an arbitration case against eBay with The American Arbitration Association (AAA). I had to register with them and it took some time to read up on their policies and understand how to file my case with them correctly and I finally got it filed. 

Per the eBay User Agreement, any dispute under $10,000 eBay will pay the arbitration fee, which I noted on my filing form and also sent eBay a copy per their instructions. 

Thirty days after filing I had yet to hear anything back and I then made a couple of phone calls to the AAA over the next few weeks only to be told it was still processing. 

After two months of waiting I suddenly received an email back from the AAA saying they were going to close my case because eBay had failed to pay the required arbitration fee of $950. The email from them had CC'd someone from the eBay legal department. I replied back to both the AAA and the eBay legal rep something to the effect that "Do you mean you are going to close this case because eBay has failed to pay the required arbitration fee in violation of their own user agreement?"

The next day I received a direct reply from the eBay legal representative saying eBay was happy to take care of my request as long as I would agree to close my arbitration case. 

That's all I wanted, and the eBay representative was actually very nice to work with in getting reimbursed for the 3 improperly closed INR cases. I even asked if they could reimburse the postage on the letter of dispute that they failed to answer, and he readily agreed. Within a day or so the funds were credited into my eBay account. 

I also asked him why my notice of dispute was never answered, and he apologized and said something about "operational issues" in that department. 

So I came away satisfied at the end of the process, but it should never have gone to that length to get restitution. eBay needs to own up when they are clearly at fault, and their CSR's should be more knowledgeable and handle those situations better. 

I am still annoyed that I wasted so much time getting nowhere with them. On the plus side though I have the email of the eBay legal representative who encouraged me to contact him again if I ever encountered "friction" with eBay customer service. Hopefully I won't need to contact him again.

Thanks,
Jeffrey

Note from the Editor: If you consider filing for arbitration, read the latest version of the eBay User Agreement carefully, including the section that describes the cost of arbitration, and be sure to comply with all directions as this reader had done.



Comments (17) | Permalink

Readers Comments

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: GetAGrip This user has validated their user name.

Sun Dec 10 16:56:57 2023

I would never give the fools the satisfaction. I go directly to my charge card. Let them fight it out with sleezebay.

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: Shanna This user has validated their user name.

Mon Dec 11 00:09:42 2023

OP,

Did you ever receive a reply from AAA? I'm wondering what would have happened next of eBay legal did not reach out to you. If the arbitration fee is not paid, then there is no arbitration? Could eBay then ignore your request? Seems like this is part of their tactics.

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: Alfacar This user has validated their user name.

Mon Dec 11 00:14:49 2023

Probably the agreement terms will change soon (the arbitration part).  My experience is that whenever you file any claim they throttle your store afterwards .

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: Andy This user has validated their user name.

Mon Dec 11 00:29:01 2023

@GetAGrip:

The poster is the seller, not the buyer(s), so the money he was trying to recover was not an outbound payment funded by his credit card, but payments received from buyers that were then improperly refunded to the buyers by eBay.

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: my2cents This user has validated their user name.

Mon Dec 11 02:43:31 2023

@Jeffrey

Thank you for sharing, that was a very interesting read.

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: pace306 This user has validated their user name.

Mon Dec 11 07:14:10 2023

eBay only woke up because it was going to cause them $$$$$

They also “never thought “ sellers would go through with all the hassle involved

The OP should have taken the greater amount - if only to serve them a wake up call “that it’s not nice to fool Mother Nature” - but it was of course his choice.

As stated above, they will slip something new into the TOS at some point to make this impossible to happen again - as “the house” hates to loose ANY hand, even a small one.

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

This user has validated their user name. by: toolguy

Mon Dec 11 09:51:57 2023

@pace306

"The OP should have taken the greater amount"

You lost me, what greater amount?

The OP never stated what they were offered besides them asking for an additional amount of postage paid on the certified letter.

From what I read they were seeking $60 + postage.

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: Snapped This user has validated their user name.

Mon Dec 11 10:58:30 2023

“Interesting” is an understatement.

First off, countless hours, research, form gauntlets, obfuscation and delay, for 3 claims avg. $20 ea?  Yer dern tootin’ eBay has it rigged to cost more than it’s ‘worth’.  And who knows how this seller’s ‘metrics’ were impacted and to what degree any potential sales opportunities throttled as means of ‘enticement’ to improve.  

Hats off to perseverance though.  Good to know (and have a primer for) such a ‘resolution’ can be had under similar circumstance.  But that’s only one side of the fence.  Actually, there shouldn’t be a fence, that’s the problem.

eBay’s accountability deflection by excusing their (and only the last in the string btw) lack of response with “ …something about "operational issues" in that department.” is the epitome of the contract law doctrine of unconscionability.  

And while a roadmap of sorts does exist for the determined, after the fact, where is the equivalent for making sure it doesn’t happen again?

It begins with their OWN records and their OWN policies referred to them ‘verbatim’ in both written and spoken form.  Treat your customers who pay the fees how you insist they treat theirs, (or ‘yours’ too if you prefer) and empower your reps to act on the evidence.  Like your ‘bots’ are empowered to initiate the mayhem in the first place.   And if you have  “operational issues in that department” to address, do so on your own dime.

And then you won’t NEED that particular arbitration case - or the few that make it through the obstacle course - clogging up what must be at the root of the “operational issues” in THAT department.  

Like too large a case load perhaps, given the lengths eBay would go to make it miserable for this OP - and countless others who don’t bother - to get fair recompense.  For $60 and certified postage.

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: NYSteve This user has validated their user name.

Mon Dec 11 11:40:54 2023

2022???
wow, thanks for going thru that loooong process and sharing with us.
you are lucky you werent stuck with the arbitration bill!

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: CBW This user has validated their user name.

Mon Dec 11 11:48:28 2023

What they should have done after Ebay first violated their own rules is go straight to Ebay legal. They wouldn't have had to wait months to get it settled.  

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: NYSteve This user has validated their user name.

Mon Dec 11 12:02:37 2023

@CBW- and that direct phone number is accessible to all and easy to remember ...1-800-EAT- SxxT

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: rhw1 This user has validated their user name.

Mon Dec 11 12:58:57 2023

Jeffrey
HUGE Kudo's to you. I hope to never go thru what you did, but I have to believe that eBay and other institutions, both public and private, are betting that the average "joe" wont have the patience to pursue as you did.
Again, congrats! Its a well deserved win!

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: pace306 This user has validated their user name.

Mon Dec 11 15:02:48 2023

Tool

if the OP hadnt "just taken the $60", eBay would have lost and would have had to settle for a larger amount PLUS taking that $950 loss. That is what I meant.

Im guessing that Jeff is a nice guy and just wanted his $60 ... and good for him that he fought the good fight to get it - I would have let it play out LONGER and made eBay pay up for its mistake.

eBay has abysmal CS - and its MOSTLY eBays own fault.

As I learned when I took a temp (1 yr) job with a large logistics firm and was a CS manager for them.

The company outsourced it all to overseas people who were given training manuals and had to sit through meetings almost daily. In those meetings - where the rules changed depending on how the wind blew, they got berated and TOLD what to do and how to do it - telling lies was part of the "cost of doing business". Just promise them ANYTHING to get them off the phone. Who cares if the store you purchased your item from told you "a week"? It was a week from when it got to their local terminal IF they were lucky. If you lived out in the sticks - on god help you.

After a few months - I left - I wasnt going to lie to people - I went the extra mile to insure that the customers got their items as soon as possible - even if it cost the company i worked for more money then they wanted to spend.

eBay does the same thing - lie cheat and steal from sellers to get them off the phone - because "what can they do about it" ??????

Well Jeff fought back and got what was his - despite eBay causing the issue(s) in the beginning.

It may have been only a small win - Jaime's drink bill is 10x that on any given night - but a win over eBay is a win.

Congrats

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: Allen1853 This user has validated their user name.

Mon Dec 11 20:47:19 2023

This was very helpful. I had a similar situation, only "worse". Tracking showed the item I shipped was DELIVERED, in Germany. Buyer opened an INR insisting he did not receive it. I uploaded tracking showing delivered. Ebay (Germany?) ruled in buyers favor. I "appealed" to the "back room", denied. I talked to CS who admitted this was all screwed up. They would hand process a ticket for refund to me. Never happened. Called CS again who also agreed buyer should not have been refunded. Promised to follow up on refund to me. Never happened. Value was $150 so could have used the Arbitration option, or perhaps have asked to contact legal in lieu of the arbitration option. Except for the hassle, this would have been a slam dunk.  

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

This user has validated their user name. by: Rexford

Tue Dec 12 11:24:40 2023

This makes for great discovery for a plaintiff's attorney who has filed suit against eBay.  I admire the OP's doggedness and resolve.

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: Fruitylovesyou This user has validated their user name.

Mon Dec 18 06:43:59 2023

I don't negotiate with my captors
for $60 out of my hide I will give them 6 grand of publicity. That is my winning strategy, I add zeroes

Perminate Link for Arbitration an Option When eBay Sellers Hit a Bric   Arbitration an Option When eBay Sellers Hit a Bric

by: OhCalcutta This user has validated their user name.

Sun Dec 24 21:48:40 2023

the 3 cases must have been closed by the bot.
Ebay has to checks its  bot ti give seller 3 days to respond



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