Fraudulent buyers taking advantage of SNAD Chargeback loopholes

[barnfindparts]

As the title suggests not exactly a ground breaking revelation I know but in my experience it’s getting worse eBay should do more to provide sellers with better protection from fraudulent buyers.

Sad fact is a buyer can get anything for free on eBay if they so desire. All they have to do is open a SNAD case quite literally for any reason and if that doesn’t yield the desired result all they need to do is open a chargeback with their payment provider as I recently found out.

A zero feedback buyer purchased an item and requested a return because she “didn’t like it” that was it even thought the listing clearly stated no returns. She opened a case and lost eBay sided with me, great clearly buyers remorse. Couple weeks later the zero feedback buyer opened a charge back with her credit card company now claiming item not as described and a month later she wins, gets a full refund and gets to keep the item. I lose $200 and the item and get charged $20 on top of it.

EBay says to offer returns which I’ve tried but if the buyer is in the US and they return it via FedEx you get charged insane brokerage fees.

This is a real problem costing a substantial loss in time and money. Customer service is really a fruitless waste of time to deal with in most situations. Really considering finding alternative selling platforms over this sad to say.

[flipistics]

The only thing I can really think of is to file a mail fraud report with the USPS (assuming it went through them at some point). It likely won't get your money back, but might help get them charged with fraud in the future if they keep doing it.

In a case like this, does anyone know what happens if you take advantage of the eBay top rated protection and refund them 50% and then they do a chargeback?

[marnotom!]

I'm a bit confused here because I checked the first page of your listings on .com with a US ZIP code as my shipping destination, and it appears that you offer free--yes, free--returns from the US on a lot of your listings.

[barnfindparts]

This particular listing was no returns.

[pjcdn2005]

Even when you don't accept returns, it often benefits you to accept a remorse return just so that the buyer doesn't open a dispute through their payment provider. If you accept a remorse return through ebay, at least you get the item back.  Does Fedex still charge brokerage even if the buyer marks the package as returned merchandise?

Looking at a few of your listings, it appears that when your listings specify Fedex you don't accept returns and when you specify standard shipping, you have free returns even for US buyers.  It seems fairly risky to have free returns from anywhere considering the cost of shipping but that's your choice of course.  You might want to consider charging buyers for shipping when they buy your items so that when they do a return, you are not required to refund the original shipping IF they have used a buyers remorse reason.   I realize this doesn't address the problem you just had but just offering a different viewpoint.

[barnfindparts]

“ Does Fedex still charge brokerage even if the buyer marks the package as returned merchandise?”

Yes 100% can confirm this. Canadian sellers are on the hook for return brokerage fees for international returns via FedEx. Unless the shipper returning the item has the foresight to write “Canadian goods being returned” on the commercial invoice. It’s a nice little racket fedex has going on over there.

They sent a couple hundred dollars over to collections that I refuse to pay. I have no control over which shipper buyers send it back with. As if they know or care either.

[femmefan1946]

even thought the listing clearly stated no returns.

No Returns does not mean No Refunds.

buyer opened a charge back

Which is why refusing returns is a Bad Practice.

If you had accepted the return, you would have paid shipping both ways (or with Buyer Remorse she may have been required to return at her own expense before refund)

but you would have the item available for resale.

and they return it via FedEx you get charged insane brokerage fees.

If you supply the shipping label (which you can do for US transactions using Shippo) you control the shipping service being used.

Does Fedex still charge brokerage even if the buyer marks the package as returned merchandise?

Only if the annoyed buyer knows to mark the package that way. And what are the chances of that?

The seller /recipient might be able to persuade CBSA to refund any duty or sales taxes, but not the outrageous FedEx  fees.

[barnfindparts]

If you supply the shipping label (which you can do for US transactions using Shippo) you control the shipping service being used.

Must be a newer development for Shippo cause in the past you couldn't purchase a USPS shipping label unless you located in the US. I'll have to look into it.

[ypdc_dennis]

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@barnfindparts wrote:
... Must be a newer development for Shippo cause in the past you couldn't purchase a USPS shipping label unless you located in the US. I'll have to look into it.

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As an alternative, you can use pirateship.com for a return to Canada from the USA. Being located in the USA is not required.

[tryubik-useonlyasdirected]

Can we offer returns and mandate that item be shipped back using the USPS?

That is what we have done in the scant couple of times it has occured, we had no issues resulting from this approach. As others have noted supply the shipping label if you can (we also request the item to be shipped back in the same packaging).

First we offered them to return the item as a buyers remorse and if they get extremely pushy, and especially if they are insisting on a partial refund, we simply offer to have the item shipped back using our requested method. A buyer is either going to accept the paid return or they were attempting a fraud scam, called on it, and usually keep the sale.

[femmefan1946]

Can we offer returns and mandate that item be shipped back using the USPS?

You can mandate using USPS by supplying the return shipping label yourself. You can buy a USPS label through Shippo.

This has been possible for a couple of years, and since a technodolt like me can do it, anyone can.

In that case, the buyer, who was complaining that the stamp, which was sold as having no gum, had no gum, did not use the label, did not return the item, I won the case, and eventually the cost of the label was refunded.

[marantz2130]

yes like New buyers giving negatives without contacting the Seller than tell me when they get something wrong they let ebay know ,by giving me a negative with any notice that really helps Sellers and ebay