Don't Get Burned on eBay | O'Reilly Media

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Bidding on eBay is nothing short of an art form. Anyone who tells you otherwise should be informed his pants are on fire.

Contrary to popular belief, punching in some numbers isn't all there is to bidding. What should you look for when selecting a seller? Does bidding early have consequences? How can mistakes be corrected? Can you spot shill bidding? And how much is that doggie in the window?

There's a definite learning curve for the entire process, and people tend to make a lot of mistakes on the way up. Unfortunately, these mistakes aren't without consequence—they can cost you time, money, frustration, and possibly even your eBay account.

Oh, stop furrowing your brow (Botox is one of the few things you can't buy on eBay). I'm not going to let that happen to you. Forewarned is forearmed, as the saying goes.

Entire tomes could be written about rookie mistakes on eBay, but who would read them? The newbies are too busy making the mistakes, and the veterans are too experienced to bother reading about them. Nevertheless, eBay policies can be very intricate and they manage to trip up both subsets of eBayers with alarming frequency.

Lisa, an avid Beatles fan, ran across the holy grail of Fab Four collectibles—a tin of "Margo Of Mayfair" Beatles Bath Talc from 1964 in perfectly unblemished, mint condition (Figure 1-1). Lisa was so excited that she immediately placed several bids, even though the auction still had two days left. None of the bids were high enough to beat the current high bidder's proxy, so she dejectedly went back to browsing.

Lo and behold, someone else was selling the exact same thing and that auction had only a few minutes to go! Lisa jumped into the bidding fray and emerged triumphant.

The next day, she received a notice from eBay stating the high bidder on the first auction retracted his bid, putting Lisa in the lead, and the auction later closed with her as the winner. She was then on the hook to pay for both auctions (and contemplating a second job).

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Entire tomes could be written about rookie mistakes on eBay, but who would read them? The newbies are too busy making the mistakes, and the veterans are too experienced to bother reading about them. Nevertheless, eBay policies can be very intricate and they manage to trip up both subsets of eBayers with alarming frequency.

Lisa, an avid Beatles fan, ran across the holy grail of Fab Four collectibles—a tin of "Margo Of Mayfair" Beatles Bath Talc from 1964 in perfectly unblemished, mint condition (Figure 1-1). Lisa was so excited that she immediately placed several bids, even though the auction still had two days left. None of the bids were high enough to beat the current high bidder's proxy, so she dejectedly went back to browsing.

Lo and behold, someone else was selling the exact same thing and that auction had only a few minutes to go! Lisa jumped into the bidding fray and emerged triumphant.

The next day, she received a notice from eBay stating the high bidder on the first auction retracted his bid, putting Lisa in the lead, and the auction later closed with her as the winner. She was then on the hook to pay for both auctions (and contemplating a second job).

Figure 1-1: The hallowed "Margo of Mayfair" Beatles tin. Who knew 40-year-old powder could be so expensive? Buy two and they're even more expensive bookends!

Section 1.1.1.1: Avoid it!

Lisa's colossal error was bidding on two identical items at the same time. All bids are live until the end of an auction, so bids retracted by another bidder or canceled by the seller can put you back in the lead.

When you see something you want to buy, add it to your Watch List (found on your My eBay page) and bid closer to the end of the auction. This gives you the chance to research it or browse for similar items without tying up your money waiting for an auction to close.

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At one point or another, nearly every eBay buyer has trouble with a seller. While it appears buyers who break the rules are quickly reprimanded, bad sellers seem to linger in perpetuity—rather like that allergy you can't shake because your boss is too cheap to have the air ducts purged of whatever biohazard is growing in them.

But unlike that situation, you do have a say in whether a lousy seller stays or goes. And you don't even have to call OSHA.

Lance found a car he liked on eBay and placed a low bid. When the auction closed, he was delighted to find himself the winner. He got an amazing deal.

He excitedly emailed the seller, who refused to sell the car because the bidding didn't go as high as she thought it would. Lance was surprised to learn eBay can't force a seller to actually honor a high bid.

He left negative feedback (a.k.a. " negging") and vowed vengeance but the seller just laughed as she negged him back. She and Lance lived in different states…and how far could he get without a car?

Section 1.2.1.1: Avoid it!

When the dotcom bubble burst a few years ago, eBay had to fire the goon squad that went around kneecapping sellers who didn't follow through on their transactions.

Now, a buyer's only recourse is to file a report against the seller for non-performance at http://pages.ebay.com/help/policies/seller-non-performance.html. eBay sends the seller a stern warning and if the behavior continues, they'll suspend the seller's account.

While leaving a neg may make you feel better in the short-term, eBay doesn't monitor feedback, so buyers' reports are the only way to make it known a seller is breaking the rules.

Section 1.2.1.2: Escape it!

Aside from filing a non-performance report, there isn't much you can do as a buyer (unless, of course, you happen to have your own personal goon squad). You may be able to avoid getting a neg if you don't give one but that's kind of a wussy way to handle things.

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"A fool and his money are soon parted," or so the saying goes.

But intelligence often has little to do with it. Even a smartypants may find his pockets empty if he zigs when he should zag.

The payment process is like a minefield, and the bombs don't care if you're a buyer or a seller—but if you know where to step, the whole thing is perfectly harmless (which also makes it like the beach where my neighbors walk their dogs). Consider this chapter your map. And wipe your shoes before you come in the house.

PayPal is the most common form of payment on eBay. By some estimates, as much as 80 percent of eBay users are registered with the popular payment service. That's a whole lot of money flowing back and forth, and a whole lot of room for error on your part.

PayPal is remarkably safe for both buyers and sellers, but it does have rules that must be followed—for both your protection and that of your trading partner.

Adam listed and sold a laptop computer on eBay. After the auction was over, he received an email from the buyer, who lived in a neighboring town and wanted to pick up the laptop rather than have it shipped.

Since packing and shipping electronics safely can be tricky, Adam was happy to oblige. The buyer issued payment via PayPal and came by Adam's house to get the computer the following day.

About a month later, he received a notice from PayPal stating the buyer claimed non-receipt of the item and wanted his money back. Confused, Adam emailed and called the buyer but didn't get a response.

Since he couldn't prove the buyer received the computer, PayPal forced him to refund the buyer's money.

Section 2.1.1.1: Avoid it!

If you're the seller, don't use PayPal for items picked up locally—in those situations, you should insist on cash.

One of PayPal's Seller Protection rules (see the section "It's Smart to Use Protection" later in this chapter) is you must have proof of delivery that can be tracked online such as a

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PayPal is the most common form of payment on eBay. By some estimates, as much as 80 percent of eBay users are registered with the popular payment service. That's a whole lot of money flowing back and forth, and a whole lot of room for error on your part.

PayPal is remarkably safe for both buyers and sellers, but it does have rules that must be followed—for both your protection and that of your trading partner.

Adam listed and sold a laptop computer on eBay. After the auction was over, he received an email from the buyer, who lived in a neighboring town and wanted to pick up the laptop rather than have it shipped.

Since packing and shipping electronics safely can be tricky, Adam was happy to oblige. The buyer issued payment via PayPal and came by Adam's house to get the computer the following day.

About a month later, he received a notice from PayPal stating the buyer claimed non-receipt of the item and wanted his money back. Confused, Adam emailed and called the buyer but didn't get a response.

Since he couldn't prove the buyer received the computer, PayPal forced him to refund the buyer's money.

Section 2.1.1.1: Avoid it!

If you're the seller, don't use PayPal for items picked up locally—in those situations, you should insist on cash.

One of PayPal's Seller Protection rules (see the section "It's Smart to Use Protection" later in this chapter) is you must have proof of delivery that can be tracked online such as a delivery confirmation number from the USPS, a tracking number from UPS, etc.—anything that can be accessed online and show the item was actually delivered. For items that sell for $250 or more, the rules are even more stringent in that the package must be signed for upon delivery.

If a buyer files a complaint of non-receipt, the first thing PayPal does is ask the seller for a DC or tracking number. If you don't have it, PayPal will almost always require you to refund the buyer's money.

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A long time ago, in a galaxy far far away, electronic payment methods didn't even exist.

PayPal is quick and convenient, but let's face it, most of its protections are for buyers.

Sellers have a set of protection policies, but certain criteria must be met to take advantage of them. Although some people try to make the rules more complicated than they are, they're actually pretty straightforward.

The full list can be found at http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/policy_spp-outside, but here's the fine print boiled down to the important stuff:

You must ship a tangible item within seven days of payment. Items sent electronically (e-books, for example) aren't covered under the Seller Protection Policy.
You must ship with an online-trackable form of delivery confirmation.
If a buyer purchases multiple items and you'll be shipping them in one box, you must accept only one lump-sum payment for everything. Since proof of delivery is required for each transaction processed individually, items paid for separately but mailed together are subject to fraudulent claims of non-receipt.
Items that sell for $250 or more must be signed for upon delivery.
You must ship only to the address the buyer has registered with PayPal; for fullest protection, ship only to a confirmed address.
If you have a dispute filed against you, you must respond to PayPal promptly—usually within seven days, but sometimes in as little as three days.

When to roll the dice:

Although PayPal insists on strict adherence to these rules in order for sellers to qualify for protection, those sellers who stringently follow the rules on even the smallest purchases will cost themselves business.

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But wait, there's more!

These situations aren't nearly as common but they're worth a mention.

Patricia won an auction and told the seller she'd be mailing her payment of $19.77. But rather than sending the standard check or money order, she carefully concealed a $20 bill and sent it via Registered Mail.

The seller signed for the envelope but claimed it arrived empty. Patricia complained to eBay but was told that although she could prove the seller received the envelope, she couldn't prove it actually contained the cash.

Section 2.3.1.1: Avoid it!

I don't really have to tell you not to send cash through the mail, do I?

Even if it isn't pilfered en route, you'll have absolutely no proof the seller received the money. So don't do it.

Section 2.3.1.2: Escape it!

Unless you want the seller to file against you as a non-paying bidder, you'll have to submit payment again—this time using a much more secure method.

Carson sold a car to a buyer who wanted to pay with a personal check. Carson explained the check would have to clear before he'd release the car and she agreed. A few days later Carson called his bank and a teller told him the check cleared. He then met with his buyer, signed over the title, gave her the keys, and she drove off.

Two weeks afterwards, Carson's bank informed him the check was stolen and never actually cleared. The bank manager explained that as a courtesy, the bank credited him with the payment prior to clearance because he'd never deposited a bad check before. The teller who told him the check was good just saw the credit for the check in his account and assumed clearance.

Carson couldn't report the car as stolen because he'd already signed over the title, and the only contact information he had for the buyer was a now-defunct email address and a disconnected phone number.

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Let's say you had a smooth-as-silk transaction with a friendly seller who shipped promptly (with a tracking number, of course), so now all you have to do is sit back and await the arrival of your fabulous Tiffany lamp.

One glorious morning, a handsome delivery man (or a gorgeous delivery woman—your choice) arrives with your eagerly awaited package. You sign for it, take it inside, and joyfully rip open the box only to find a disaster.

The seller wrapped your delicate lampshade in flimsy brown paper before tossing it into the box. Those colorful glass shards will sure come in handy if you ever find a mosaic art project, but you had something a little more intact in mind.

Or perhaps your newly acquired Aeron chair is missing its wheels because the old, battered box in which it was packed tore in transit, resulting in the loss of the small pieces.

Now what?

If you're the buyer in a situation where your auction item has arrived in bad shape, you should start by contacting the seller. If you aren't satisfied with the resolution the seller proposes, you can file an INR/ SNAD complaint with eBay by going to Help → A to Z → I → Item Not Received/Significantly Not As Described Process (Figure 3-1). You can also file a grievance with PayPal, providing you used it for payment (see Chapter 2, "PayPal: Read the Fine Print").

Figure 3-1: The first page of the INR/SNAD report. After entering the item number, you'll provide relevant details—and if you paid with PayPal, you'll be automatically directed there to file a grievance as well.

If you're an eBay seller, this chapter is primarily for you. You'll learn that a little conscientious care and a bit of common sense are usually all it takes to keep your items safe and your buyers happy.

Bad packing is a big cause of grief between buyers and sellers: the seller feels his packing job was just fine but the buyer has a damaged item to prove otherwise.

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Bad packing is a big cause of grief between buyers and sellers: the seller feels his packing job was just fine but the buyer has a damaged item to prove otherwise.

Even the most securely packaged items can break in transit, but that doesn't mean you get to be sloppy and blame it on the shipping company. As a seller, you're responsible for getting items to your buyer in the condition in which they were purchased, so unless you enjoy issuing refunds, you'd better pack things well.

Items that arrive broken are considered "significantly not as described" unless the auction stated the item was already broken. PayPal used to stay out of so-called "quality" issues but will now often intervene if the buyer can provide photographs or other proof of damage. See Chapter 4 for more details.

Joyce sold a lovely Waterford crystal vase. She wrapped it in bubble wrap and found a box sturdy enough to survive the trip to her buyer's home a few states away.

Getting the wrapped vase into the box wasn't easy. The bubble wrap added a couple of inches to the width, so Joyce had to wedge the vase in. It made the sides of the box bulge a bit but she was certain the bubble wrap would provide all the protection necessary.

A week later, her buyer emailed to say the vase did indeed arrive in one piece but was cracked in several places. After receiving proof of the damage, Joyce sadly refunded her buyer's money.

Section 3.1.1.1: Avoid it!

Selecting the appropriate box for a fragile item is extremely important. You want to make sure the box isn't big enough for the item to rattle around but not so small that the sides of the box are pushing in on the item.

Many eBay sellers who routinely ship delicate items recommend double-boxing them. This means placing the item in a box with appropriate padding (such as bubble wrap) and then placing that box in a larger box. The second box should be at least 2" bigger than the first on all sides, and that extra space should be loosely filled with packing peanuts.

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This is less important than ensuring an item arrives undamaged, but it's a close second.

If you pack your items in a way that removes the allure of what your buyers purchase or worse yet, causes them to become red-faced in front of delivery people, exactly how eager do you think they'll be to buy from you again?

Right. So if you want glowing feedback and repeat business, pay attention to detail. Your buyers will thank you for it.

Okay, so I've hammered into your head the importance of sufficient packaging and now you're wondering—where can I get good packing materials without spending all the profits from my sales?

I thought you'd never ask.

If you're new to eBay, one of the best ways to build up your feedback (see the "Don't Be Quick on the Feedback Trigger" section in Chapter 5) in anticipation of becoming a seller is to buy some shipping supplies from other eBay sellers.

A couple of shipping supply companies I can recommend (though this certainly isn't an exhaustive list) are gatorpack at http://stores.ebay.com/Gatorpack-Shipping-Supplies and parrothead88 at http://stores.ebay.com/Shipping-Supplies-CHEAP . I have personal experience with both of them. They do a tremendous volume of business yet they also have great customer service, fair shipping rates, and unbelievably good feedback. Of course, you can always browse for a seller on your own, too—go to Buy → Business & Industrial → Office Printing & Shipping → Shipping & Packing Supplies (see Figure 3-3).

Figure 3-3: Within the Shipping & Packing Supplies category, you'll find everything from bubble mailers to boxes. Buying in bulk usually saves you money, but watch the shipping fees and be sure to factor them in to determine your final per-piece cost.

If you're already an eBay seller and feel that even the cheapest supplies are breaking the bank, you may be able to score them for free—if you know where to look. Here's one of the better-kept secrets: find a local gift shop that routinely sells fragile collectibles like porcelain figurines, decorative plates, crystal bells, etc. Speak to the store owner or manager and ask what she does with the boxes, bubble wrap, and packing peanuts she gets when she receives a shipment of items.

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Although packaging items to avoid breakage (or embarrassment) is of paramount concern, there are some situations that require you to think ahead a bit more.

Items can arrive intact and still be completely ruined. It's your job to assume the worst will happen and package accordingly.

Grace purchased a robotic toy for her grandson. It was one of those items sold out in all the stores so she was happy to find it. The item arrived and was, as the seller stated, new in the box. Grace wrapped the item lovingly (as only a grandmother knows how to do) and proudly presented it to her grandson on his birthday.

When he pulled the toy out of the box, there was battery acid all over the battery compartment and down the back of the toy. Apart from the obvious damage to the plastic caused by the acid, the toy was completely inoperable.

Grace contacted the seller, who told her he included the batteries "to be nice" and in light of his generosity, he didn't appreciate her ungrateful attitude.

Section 3.3.1.1: Avoid it!

If you're the seller, never ship batteries inside a battery-operated item. They have a nasty tendency to leak during shipment, and battery acid pretty much destroys everything in its path. So if you're selling a used item, be certain the batteries have been removed prior to shipment.

If you're selling a new item, check the box for a "battery included" notation. Some manufacturers are selling items with the required battery already inserted (again, not a great idea), so be absolutely sure that's not the case before you ship.

If you want to go the extra mile for your customer and include batteries with the item, buy a new package and toss the sealed batteries into the shipping box. Your buyers will appreciate your thoughtfulness, and you won't have to worry about your good deed being punished.

This also applies to toner cartridges being sent with inkjet printers. Take them out and seal them in a plastic bag before you put them in the box. Ink isn't something you want leaking all over the place.

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So your widget is ready to go. Everything's nice and secure. You've used a good sturdy box and enough packing peanuts to simulate a Minneapolis snowstorm. Well done!

Now what?

Unless you're in dire need of frequent flyer miles and are planning to deliver the item in person, the next step is selecting a shipping service. And they aren't created equally.

For example, only one carrier accepts items sent to P.O. boxes. Another is best for lightweight items. One in particular charges international customers exorbitant fees for the privilege of delivery. There's a certain carrier that insists on a signature for any item delivered to an apartment building. All will be revealed in this chapter!

Other considerations: should insurance be purchased? Can the item be sent via air? What prohibitions do some foreign countries have against certain items?

Confused yet?

Well, don't be. It's a lot to remember but it's not as bad as it sounds and some details are pertinent only under rare circumstances.

I mean, how often will you want to ship chrysanthemums to Latvia, dried milk to Denmark, or underwear to Peru?

Assuming you just said "never" (and I really hope you did), you'll be able to absorb what's necessary from this chapter and refer back to the minutiae when necessary.

As your eighth-grade Social Studies teacher used to say, "It won't be on the test."

Dozens (if not hundreds) of shipping services exist, but for the purposes of this book, I'm going to focus on The Big Three: USPS, UPS, and FedEx.

All are reliable but each is better at some things than others. And sometimes you shouldn't trust any of them.

If you're an eBay seller, choosing the right shipper for your items can add to the excellent service you're already providing your customers.

And if you're an eBay buyer offered a choice of shipping services, selecting the most appropriate carrier for your new acquisition can save you money and untold amounts of aggravation.

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Dozens (if not hundreds) of shipping services exist, but for the purposes of this book, I'm going to focus on The Big Three: USPS, UPS, and FedEx.

All are reliable but each is better at some things than others. And sometimes you shouldn't trust any of them.

If you're an eBay seller, choosing the right shipper for your items can add to the excellent service you're already providing your customers.

And if you're an eBay buyer offered a choice of shipping services, selecting the most appropriate carrier for your new acquisition can save you money and untold amounts of aggravation.

Jeff, a resident of San Francisco, purchased tickets at a premium from a broker for the sold-out SF Giants/NY Yankees game.

A few days before the game, he learned he was going to be sent out of town on business so he decided to try to recoup his money by selling the tickets on eBay.

Since time was of the essence, Jeff ran a three-day auction, sold the tickets for slightly less than he paid for them and offered overnight shipping to his buyer (who lived in Las Vegas). The scheduling was a bit tight but the tickets were supposed to arrive that Thursday—the day before the buyer's plane would depart for San Francisco.

Unfortunately, Thursday came and went with no delivery.

Jeff frantically called the shipping company, who told him "mistakes happen" and that the tickets would be delivered the following day. But since the buyer had an 8 a.m. flight, this meant she'd have to depart without the tickets in hand and would therefore miss the game.

Jeff refunded his buyer and later spoke to the shipping company about their "on-time guarantee." He expected the carrier to cover the cost of the unused tickets since it was the shipper's fault the tickets hadn't arrived when promised.

You can imagine his horror when he learned he was only entitled to a refund of the shipping costs.

Section 4.1.1.1: Avoid it!

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Insurance is one of the most confusing aspects of shipping.

When an item is lost or arrives broken, buyers and sellers start pointing fingers at each other and screaming about who should eat the loss.

Many sellers feel if a buyer rejects insurance, he's taking his chances and the seller should therefore not be held responsible if something goes awry.

And buyers feel sellers are the ones in charge of shipping the package so it's up to sellers to insist on insurance if they don't want to be held liable should there be a problem.

Who's right?

As with almost everything else on eBay, it depends on the circumstances.

Maggie is a seller of rare books on eBay. All her auctions bear the following disclaimer: "Insurance is optional, but I won't be held responsible for packages lost or damaged by the Post Office."

One weekend, she sold one of her expensive books. The buyer rejected insurance, so Maggie boxed up the book and sent it uninsured via the USPS.

When the book arrived, it was completely ruined. It appeared the box had been soaked at some point during shipment, so the book's hardback cover was warped and the pages were smeared. The whole thing smelled of mold and mildew.

Maggie refused to refund, citing her disclaimer and the buyer's refusal of insurance.

The buyer then filed a Buyer Protection claim with PayPal. They ruled that since the item was unusable, Maggie was required to refund—even though the book was in perfect condition when she sent it.

She was out not only the $400 purchase price of the book (and the shipping costs) but another $10 for PayPal's administration fees.

Section 4.2.1.1: Avoid it!

If I were to guess, I'd say the most common misconception among eBay sellers is that a disclaimer like Maggie's protects them in the event an uninsured item is damaged or lost in transit.

Except for some very specific circumstances, it's simply not true.

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Even though there's only one story to illustrate the point, it gets a section all its own.

Why? Because not a day goes by on eBay's message boards without at least one buyer raising eight different kinds of hell because she feels a seller "gouged" her on shipping.

Sometimes it's true. Usually it's not.

But it's always the same story with just a few minor variances.

Let us begin…

Debra purchased a new eye shadow compact from an eBay seller.

She thought the shipping price of $2.99 was steep but the seller was the only one on eBay with that particular brand and color of shadow, and Debra had been looking for it for a while—so she bid on and later won the item.

When it arrived, Debra was shocked to see the postage on the package was only $1.00.

She left negative feedback for the seller with a statement that his shipping charges were "outrageous" since the postage he paid was so much less than what he'd charged her.

The seller negged her back, and Debra feels she didn't deserve it.

Section 4.3.1.1: Avoid it!

If you're a buyer, I want you to get out a pen and paper.

Sit down and write this: "Shipping is not postage. Shipping is not postage. Shipping is not postage." Write it 100 times or 1,000 times or however many times it takes for you to believe it. Because it's true.

People who've never sold on eBay usually don't understand the hidden expenses of shipping an item.

Unless you want your new end table to simply have a shipping label slapped on the leg before being tossed into a truck, you'll need to take into account everything that goes into getting an item to you safely and in one piece.

In Debra's case, her eye shadow was shipped in a bubble mailer via first class mail with delivery confirmation.

Bubble mailers cost about $1.00. High volume sellers buy them in bulk for much less, but the occasional seller usually just grabs one at the drug store and pays full price.

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Ah, you thought it was just about money and stuff, didn't you?

No, cupcake. There are people behind the money and the stuff. And just like the people with whom you interact every day, the people on eBay can sometimes make things very, very difficult.

Perhaps their intentions are pure—and perhaps they're purely malicious—but you'll have to deal with the fall-out either way. It can be as minor as a smudge on your feedback record, or as major as the loss of your eBay account.

Years of experience on eBay and countless hours spent reading the stories of others in the community forums have taught me this: some people have the ability to take a perfectly uncomplicated situation and make an utter mess of it.

It's a special gift, really. I'll bet you know someone who has it. And I'll bet you avoid him whenever humanly possible.

In case you were wondering, he spends his free time on eBay. I've bought from him and sold to him—and so have millions of other people. He's a busy boy, that one.

If you know the warning signs, you can sidestep him and the drama he brandishes like a sword.

That's where I come in.

I'm a big fan of drama-avoidance in general, especially when it comes to people I can't see. Nothing looks crazier than a woman muttering obscenities to a computer monitor.

So I go out of my way to be on the lookout for such things before they happen.

If all else fails, you can always stick pins in a doll named after the person. But that's so uncivilized.

You weren't raised that way.

Leah, an eBay newbie, had rather high expectations from her first transaction.

She paid for her item and when it hadn't arrived a few days later, she immediately left negative feedback for the seller.

The seller, whose previously perfect feedback record had now been marred, was understandably upset. He retaliated and negged Leah back, leaving her with a feedback rating of (–1).

Leah tried to bid on other sellers' items but found herself blocked from them.

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Years of experience on eBay and countless hours spent reading the stories of others in the community forums have taught me this: some people have the ability to take a perfectly uncomplicated situation and make an utter mess of it.

It's a special gift, really. I'll bet you know someone who has it. And I'll bet you avoid him whenever humanly possible.

In case you were wondering, he spends his free time on eBay. I've bought from him and sold to him—and so have millions of other people. He's a busy boy, that one.

If you know the warning signs, you can sidestep him and the drama he brandishes like a sword.

That's where I come in.

I'm a big fan of drama-avoidance in general, especially when it comes to people I can't see. Nothing looks crazier than a woman muttering obscenities to a computer monitor.

So I go out of my way to be on the lookout for such things before they happen.

If all else fails, you can always stick pins in a doll named after the person. But that's so uncivilized.

You weren't raised that way.

Leah, an eBay newbie, had rather high expectations from her first transaction.

She paid for her item and when it hadn't arrived a few days later, she immediately left negative feedback for the seller.

The seller, whose previously perfect feedback record had now been marred, was understandably upset. He retaliated and negged Leah back, leaving her with a feedback rating of (–1).

Leah tried to bid on other sellers' items but found herself blocked from them.

Frustrated, she signed off eBay and never returned.

Section 5.1.1.1: Avoid it!

If you're an eBay seller, you probably whooped "Good riddance!" after reading of Leah's demise. Settle down.

Anyone who's spent time on eBay has surely run across auctions with Terms of Sale (TOS) stating newbie bidders aren't allowed. It's harsh and ridiculous—after all, without newbies, eBay would cease to exist.

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Take a little time to set your preferences and eliminate angst. You can block specific people from bidding (if you've had trouble with a certain buyer) or stipulate that you do business only in your own country.

Jade, a computer wholesaler and eBay seller, auctioned off a laptop.

The auction ended with a winner, but during the following month the buyer ignored Jade's repeated invoices and requests for payment.

Jade finally filed a UPI, left the buyer negative feedback for non-payment, and relisted the laptop.

The following week, her deadbeat bidder suddenly resurfaced and began winning all of Jade's Buy It Now auctions. In addition, four brand-new, zero-feedback bidders began emailing her with rude questions and later won many of her other auctions. All the bidders left negative feedback for Jade as soon as the auctions closed, and all of them ignored her requests for payment.

The mess cost Jade an enormous amount of money in listing fees and her feedback took a disastrous hit.

Section 5.2.1.1: Avoid it!

The damage one disgruntled bidder can do is fairly catastrophic. Fortunately, there are ways to sidestep at least some of it.

One of the first features with which an eBay seller should familiarize herself is the Blocked Bidder List (BBL). Go to Help → A to Z → B → Blocked Bidder List (Figure 5-5).

People named on your BBL can't bid on your auctions. If they try, they'll get a system-generated page telling them their bids have been rejected. Anytime you have trouble with a non-paying bidder, add them to your BBL. In fact, you can add a person with whom you haven't even had trouble yet. Has someone emailed you a question you find odd or offensive? Add them to your BBL.

The BBL can sometimes go hand-in-hand with the Cancel Bids feature. To cancel bids, go to Help → A to Z → C → Cancel Bids (Figure 5-6). If you have a current bidder you don't like for any reason, cancel his bids and add his name to your BBL.

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Trouble can come from any direction. You know there are thieves out there ready to take your cash, but you don't expect to lose money helping a friend. It's easy to stay flush (and popular) if you know what precautions to take.

Antonella desperately wanted the new Louis Vuitton handbag. She did not, however, want to pay the $5,000 for which it was retailing. Since she'd gotten so many great bargains on eBay before, she thought it would be the perfect place to find the bag at a discount. She was delighted to find the purse she wanted with a BIN price of only $500. She purchased it and paid immediately through PayPal.

Several days later, she received a notice from eBay that the auction had been pulled for a VeRO violation and she shouldn't pay for it. But since she already had, she didn't know what to do.

And what on earth was a VeRO? It sounded like a tragic baby name or a recalled car.

When Antonella hadn't received her bag a few weeks later, she logged back into eBay and saw her seller had been NARU'd. She filed a complaint with PayPal, who found in her favor, but by then the seller had already cleaned out his account and was long gone.

If you're an eBay seller, you should get very cozy with your Seller Preferences. You can find them on your My eBay page under My Account → Preferences.

Under Selling Preferences on the next page, look for Buyer Requirements and click the "show" link. If you don't like what you see, click "edit."

You'll have the option to:

Block buyers in countries to which you don't ship.
Block buyers with an overall feedback score of (–1) or less.

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Eleanor Roosevelt once said, "No one can make you feel inferior without your consent." By the same token, no one can take advantage of you without your express permission. If you've been the victim of a scam on eBay or PayPal, you probably screamed about the sites having been "hacked." That's a common cry but it's simply not true. Both sites are essentially bulletproof.

Trust me when I tell you scammers would much rather hack a web site than wheedle information out of people one at a time. If they could gain access to the financial details of millions of eBay or PayPal customers all at once, they would—but it's just not that easy to do. So scammers are forced to rely on the ignorance of the general population, something that can never be overestimated.

And thus, they flourish.

Buyers are usually the ones scammed, but there are times when sellers take hits too (albeit in much different ways).

You'll never get burned by scammers if you avoid falling into their traps. And this chapter is designed to keep you out of their slimy, scheming clutches.

Let's play the feud!

Your inbox should be a happy place. Unfortunately, some killjoys will go out of their way to turn it into a minefield. Read on and tread lightly.

While checking her email one day, Lola found a rather ominous looking missive from eBay. It said there had been some suspicious activity on her account, and the only way to keep it from being suspended was to update all her financial information. The email included a link to a web page where she could do that.

When Lola clicked on the link, she saw the familiar eBay logo in the upper corner and filled in the blanks for her personal information, including her bank account, credit card, and Social Security numbers. She thought it was odd that she was also asked for her mother's maiden name. She didn't recall being asked for that when she signed up for her eBay account, but maybe it had just slipped her mind. Satisfied she'd saved her eBay membership from certain doom, Lola finished filling out the form and turned her computer off.

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Your inbox should be a happy place. Unfortunately, some killjoys will go out of their way to turn it into a minefield. Read on and tread lightly.

While checking her email one day, Lola found a rather ominous looking missive from eBay. It said there had been some suspicious activity on her account, and the only way to keep it from being suspended was to update all her financial information. The email included a link to a web page where she could do that.

When Lola clicked on the link, she saw the familiar eBay logo in the upper corner and filled in the blanks for her personal information, including her bank account, credit card, and Social Security numbers. She thought it was odd that she was also asked for her mother's maiden name. She didn't recall being asked for that when she signed up for her eBay account, but maybe it had just slipped her mind. Satisfied she'd saved her eBay membership from certain doom, Lola finished filling out the form and turned her computer off.

A few weeks later when she received her credit card statement, she was stunned to see several large purchases she didn't make. When she called her card's customer service department, she was told the purchases triggered a fraud alert but the person making the charges knew her name, address, Social Security number, and mother's maiden name, so the charges had been approved.

Lola also began to receive statements for credit cards she didn't even have. The person who filled out the applications knew everything necessary to take the cards out in her name. By the time the mess was untangled several months later, Lola's bank account had been drained and her credit was ruined.

Section 6.1.1.1: Avoid it!

Lola fell victim to something called phishing. It's one of the most common scams out there. See Figure 6-1 for a sample scammer email.

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For years, my friends and I have joked, "I saw it on the Internet. It must be true." Snarky sarcasm aside, be aware that web sites are transient little beasts: what's here today can be long gone tomorrow.

Lyle bid on a gorgeous diamond engagement ring for his fiancée but was subsequently outbid. After the auction closed, the newbie seller contacted him with a legitimate Second Chance Offer but said she hadn't yet had the opportunity to set up her PayPal account. She then asked for payment via Western Union.

Lyle had heard WU payments were a bad idea but the ring was so perfect that he asked the seller if there was any other method by which he could pay. The seller said she understood Lyle's concerns and offered to use an escrow service to put his mind at ease.

She gave him the web address of an escrow site she said she'd used many times before. Lyle visited the professional-looking site and was impressed. He emailed the company's accounting department directly and was told that once he wired payment, he would be sent the ring—and his money wouldn't be released to the seller until he notified the escrow service the ring had been received.

This sounded very safe, so Lyle wired money to the escrow company.

Two weeks later, having received nothing from either the seller or the escrow service, he returned to the escrow site—only to find it gone. The seller's eBay account had been suspended as well.

Section 6.2.1.1: Avoid it!

Escrow scams can take several forms. Some of them are perpetrated by account hijackers (who can send official SCOs from the stolen username), some by new eBayers, and still others defraud through phony SCOs.

As with many scams, the seller claims PayPal trouble and asks for a wired WU payment. If you fall for that, her work is done. As I've told you over and over throughout this book, wired funds can be picked up anywhere in the world and are unrecoverable, so if she's able to steal your money that way, all the better for her.

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Think back to your childhood, when your big sister would distract you by excitedly exclaiming, "Look! A puppy!", only to quickly swap her half-eaten cake for your larger slice. This is sort of like that, but worse.

Mitch sold a rare miniature of a classic car, mint in the pristine box. His buyer paid via PayPal and he shipped the item to her.

A week later, she emailed Mitch and said the car and box had damage undisclosed in the auction and she wanted to return it for a refund. He was surprised but since he wanted to keep his customer happy, he agreed to a refund upon the item's return.

When he got it back, it was a mess. The box was old and dusty, and the car inside had clearly been played with many times.

Mitch told his buyer this wasn't the item he sent her but she insisted it was—and when she didn't immediately get a refund, she filed a complaint with PayPal.

Section 6.3.1.1: Avoid it!

This is what's commonly known as "the old switcheroo."

Here's how it works: the buyer has an item she'd like to replace but she doesn't want to spend the money to do so. She checks eBay, finds an exact match of her item in brand-new condition, and purchases it. Upon receiving the new item, she claims it has damage the auction didn't specify so she wants to return it. She then sends back her old item for a refund while keeping the new one for herself.

If the seller falls for the scam and refunds her money, the buyer winds up with the new item and her money back.

The switcheroo scam seems to be perpetrated most often against sellers of computer equipment and other electronics. If you compare two PC memory cards with the same make and model, you'll find they usually look identical. So a person who's somehow ruined the one they have may be able to easily pull off a switcheroo and replace it for free. It can also be done with CD players, DVD players, etc.

So what's a seller to do? The solution may be easier than you think.

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Table of Contents

Section 1.1.1.1: Avoid it!

Section 1.2.1.1: Avoid it!

Section 1.2.1.2: Escape it!

Section 2.1.1.1: Avoid it!

Section 2.1.1.1: Avoid it!

Section 2.3.1.1: Avoid it!

Section 2.3.1.2: Escape it!

Section 3.1.1.1: Avoid it!

Section 3.3.1.1: Avoid it!

Section 4.1.1.1: Avoid it!

Section 4.2.1.1: Avoid it!

Section 4.3.1.1: Avoid it!

Section 5.1.1.1: Avoid it!

Section 5.2.1.1: Avoid it!

Section 6.1.1.1: Avoid it!

Section 6.2.1.1: Avoid it!

Section 6.3.1.1: Avoid it!