The Guardian (UK) produced the
following article about Ebay: ‘Ebay accused of failing its sellers as fraudulent buyers
manipulate the system’
I have never traded on Ebay, but know a
few who have, including John Thornhill (see below)
who started his trading there. Ebay is a market for trading
physical goods over the internet
and has been very successful.
Profit margins are less than for
non-physical goods as you have a cost for each physical product
that you sell and delivery costs.
Ebay has to control its market to
promote honest trading between buyers and sellers.
The article suggests that Ebay has
monitored the sellers by allowing the buyers to grade sellers’
performance. Knowing that your seller has a
good track record of customer satisfaction encourages more sales. However, there are a number of
fraudulent buyers on Ebay. They buy goods, demand a
refund and either do not return the goods, or they are damaged. Some of these sellers claim a lack of
support from Ebay in resolving the loss. I have commented before on refunds
in our sector of non-physical goods
and how there are some who
misuse the refund system.
For us, a refund means a loss of
profit. On Ebay, a refund can mean losing the
money spent on the product and delivery costs. From yesterday, if you missed it:
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