unofficial pay pal and ebay problems

Tuesday :: 18 November 2008 :: 05:22 PM
37 days to Christmas!

 

Everyone who has done very much e-commerce, eBay business, etc has at one time or another run up against problems with PayPal®. Problems are inevitable and with most people and businesses, you work things out. The problem with eBay and PayPal is that they will not listen and they will not work things out. They will talk you in circles and you will always walk away the loser. If there ever was a real competitor to eBay and PayPal, we would recommend them. Until then, vent here by posting your problem with PayPal. Send it to the email address below. Note: If we suspect your issue is not legitimate, we will not post your gripe.

Why I Am Not Selling On EBay

©by Dean Isaacson

[click on the image for a larger view] It is clear from this image, my ratings are higher than eBay averages in every category, yet eBay claims I am failing in policy compliance. I tried to negotiate with them, but they will not talk - except for the form letter that talked down to me claiming they will review my account if I improve my performance. They are big and they don't care.

Several friends and acquaintances of mine who have been active with eBay are now pulling out. Some cite policy changes and the fact that sellers can no longer leave negative feedback for buyers (but buyers can still leave negative feedback for sellers). Some cite their scalping fees, which continue to climb. Even when they go down - they go up. Right now insertion fees are down, but selling fees are all over the map, depending upon the type of product - and it can be as high as fifteen percent. They don't make it easy, and if you blink, you get scalped.

One of the problems I see on eBay is their "best practices" to begin auctions low and without reserve. That might have worked in the past, but now there more sellers and fewer buyers than there used to be on this service. At the same time, eBay is promoting itself to buyers as the place to get something for nothing. Everything they do works against the seller, and now, at least in my case, the beatings will continue until the morale improves.

Right now, I am not selling anything on eBay. Maybe later, I might return but only in a limited fashion - and only because I have not found an alternative market. But I will never reopen my eBay store - period. Amazon will get my store business before eBay does.

What got us in trouble with eBay was a complaint from a customer that we would not ship her the product she purchased. However, in her letter, she acknowledged we had shipped it once. It was returned to us because she had not picked it up. We offered her the opportunity to be refunded the difference of our shipping and the price she paid, or for an additional fee, we would re-ship to her. She elected to have it re-shipped, but she kept postponing payment, just like she was negligent in picking up the product the first time. After several warnings, we refunded her and put the product back in inventory. She complained, hoping eBay would force us to re-ship (however, she still had not sent the money). EBay took her side in this argument - as usual, they always side against the party that put in the most effort, the seller. Here is the letter I sent to eBay in August. Five weeks later, I have still heard nothing (like I expected), so it is only fair you should have the opportunity to read my side of the story.

23 August 2008

attn: Chairman, CEO

eBay, Inc.

2145 Hamilton Avenue

San Jose, CA 95125

RE username: phastmotors

 

THIS LETTER IS FOR ANYONE IN THE COMPANY WHO GIVES A DAMN ABOUT ANY SMALL SELLER WHO IS THINKING ABOUT LEAVING YOU FOREVER - AND TAKING TEN FRIENDS WITH HIM.

On the 21st of July, you sent us an MC008 SNPC NOTICE. In that notice you stated:

"Our records show that you have generated greater than 5 percent buyer dissatisfaction based on negative/neutral feedback, Item Not Received complaints and/or Detailed Seller Ratings in a rolling 30-day timeframe. This exceeds the minimum standard for buyer satisfaction. If your buyer satisfaction rate does not improve over the next 30 days, your sales activity will be fully restricted."

• Our buyer satisfaction rating is 98.8% Our Detailed Seller Ratings are 4.65% and above.
• You received a complaint from a buyer that we had not delivered her product AND YOU WOULD NOT LISTEN TO OUR SIDE OF THE STORY. Furthermore, had you even read her letter, it would have become clear that WE DID DELIVER her product. In her letter, SHE ADMITTED that we had delivered the product. In her letter, SHE ADMITTED we had provided an option for her to have the product re-shipped to her.
• THIS BUYER HAS NEVER GIVEN US NEGATIVE FEEDBACK. She was negligent on the first opportunity, she intentionally negligent on the second opportunity, even after several warnings, so we refunded her money. She did not want her money, she wanted the product - however, we gave her two opportunities and she squandered both of them. You never listened to our side of the story.
• The ONLY NEGATIVE FEEDBACK we have received is from a man who, right after we shipped, emailed us we were supposed to give him some free object that we never agreed to. After exchanging emails, he immediately gave us a negative - the same day we shipped! This was a month before you provided the option to appeal this. So we recalled the package and gave him a full refund. He still complained to you and PayPal because he wanted punitive damages!!!
• The ONLY NEUTRAL FEEDBACK we have received was from a customer who had a complaint and never contacted us. I cannot vouch for the breakage of the needle (that costs 10 cents in the store) but I can vouch for the condition. It was new, and inspected by me. And she bought the item for pennies. Some people will complain no matter what - and she never complained to us or gave us an opportunity to make it right.

Twice, I contacted customer service about the MC008 SNPC NOTICE and twice they told me to appeal to Trust and Safety (Trust). The first time I appealed, Trust returned an email stating that they made their decision and they might reconsider after thirty days - meaning there is NO APPEAL. The second time, Customer Service assured me I could appeal and that Trust would listen to my case, but the second response from Trust was to ignore my email.

It is becoming clear that you do not value your sellers - at least not the small guys. It is becoming clear in your policies that you are favoring buyers over sellers, when it is the seller who is hiring you to provide the platform and it is the seller paying your expenses. Your costs continue to climb while you encourage your sellers to compete at less than cost.

This letter is sent only to satisfy myself that I corresponded with you before I left for good. I am not delusional, in that I think anyone in eBay will read this letter - or care about my concerns. If I do get a response, I have every certainty it will be a canned letter about your policy and some hope that I will improve in the future. Don't even bother as that will make me more upset than I am. I have closed my store, closed my auctions and both my accounts are dormant. I may use your services once in a long while - but in every way possible, I will work around you, or without you. The more eBay sellers I talk to, locally and as I travel, the more I am getting the same feedback.

While you rest on your laurels, maybe someone else will quietly restart the service you used to be and maybe in the future, eBay will be a name that brings back nostalgic thoughts and remembrances of an era and no one will remember why you aren't in business anymore.

 

Sincerely,

Dean Isaacson

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