Online Retail 101: Dealing with Fraudulent Chargebacks on eBay Items Sold

Online Retail 101: Dealing with Fraudulent Chargebacks on eBay Items Sold

July 21, 2017 0 By Koehler Home Decor

Even though it is now over two decades old (can you believe it?) eBay remains a great outlet for those looking to build an online retail business. Since 1995, when it was founded as a sort of digital yard sale, eBay has become an increasingly sophisticated company that has a lot to offer to sellers. There are however some quirks of selling on the platform that can be especially annoying, and one of those is dealing with chargebacks.




eBay Chargeback Basics

Sadly these days it is something that almost all eBay sellers and eBay store owners will experience at some point but for those new to eBay store ownership receiving a chargeback notice, sometimes months, after an item has been sold and shipped, can be quite a shock. Unfortunately, many of these newer store owners (and even some experienced ones) really do not know how to handle the situation and simply resign themselves to the loss.

Dealing with a chargeback on a purchase made through your eBay store is not an easy task but if you feel the reason for the chargeback is an invalid one (and it happens far more often than you might think) then you should try to take the time to appeal it not only to protect the money that really should be yours but also to (hopefully) discourage the buyer from doing the same thing again to another eBay seller.

There are legitimate reasons for a chargeback you may have to swallow. If a credit card has been used fraudulently to purchase items from your eBay storefront then the rightful owner’s credit card company will charge the items purchased back as a matter of course.

There is very little a seller can do about this other than make a mental note to improve their own verification procedures in the future, implementing things like refusing to ship to an address that is not Paypal verified or to an address that is different from a billing address and making use of some of the other eBay store tools that can help you vet buyers before you agree to make a sale.

Chargeback Abuse and eBay

An increasing number of people though are abusing the chargeback system, usually by claiming something was wrong weeks, or even months after the sale was made. This should always raise a red flag – why wait so long to complain?

One of the biggest reasons people give when making these late chargebacks is that the item was not as described. However, if you follow the standard good practices of any eBay store owner and include good photographs of the items being sold and an accurate, concise description you should have a good case against this kind of chargeback if you feel the claim is false. It will just be up to you to make that case rather than to accept the loss.

What many newer eBay sellers don’t realize is that just as there are strict Seller Guidelines and codes of conduct eBay does hold buyers to some increasingly high standards as well, via their Buying Practices Policy. If you believe a buyer is making an unreasonable claim, in relation to a chargeback or any other complaint, including leaving unreasonable feedback, reviewing this policy, and then following the suggested actions as appropriate, can help you avoid losing out when you have a legitimate case.

Koehler Home Decor is a wholesaler of home decor accessories and unique gifts. Source quality wholesale merchandise at and find tips for promoting your business on our blog.

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