The reason this scam has become so widespread on eBay (we've been hit 7 times now in just a few years) is because the scammers are getting paid by eBay for their returns, without them returning the items purchased. They are making money with this scam. Here is what is happening, which is what happened with my last event.
We sold an item for $175, weighing 3 lbs. The buyer in turn claimed it was defective and started a return, sending back only an empty envelope. So I called eBay, which I had done several times in the past when this happened. They said I have two options. I could either refund the buyer 50%, in which case the return would be closed, or I could refund them entirely, and then appeal that to eBay. (I am still in complete shock of this policy.) I understand eBay is trying to solve the issue, but this WILL NOT WORK. This policy is actually why this scam has become so prevalent, because these scammers are making money. Granted, eBay has covered me for some of these losses in the past when I appealed (but not all), which is appreciated, but the buyer is still being refunded.
Here is how it works. If you refund the buyer and then appeal to eBay, eBay first sends the refund to the buyer, and then decides whether to cover you (the seller) or not, out of their own pocket. That's all well and good, but the scam WILL NOT STOP IF THE BUYER IS BEING PAID!!
This policy is set up to protect sellers (which it actually doesn’t in the long run) but it is not set up to stop the scam, hence the reason the scam has become so prevalent. Even if you choose to send only 50% back to the buyer (although at least there is that) the buyer still gets to keep the product at half price. They then turn around and sell the product on eBay (it happened to us) at less than the original price, competing with your sales of the item on eBay. So, in the long run, the seller takes a loss twice. AND, eBay doesn’t always cover the seller if they opt to refund the full amount and then start an appeal. So there is that gamble also if you, the seller, chooses to send a full refund and then appeal to eBay.
The only way for this scam to stop is if eBay stops refunding the buyer. This last go around I called eBay and asked to speak to a supervisor. I explained the situation, and told them that eBay’s policy is not working. The scammers will not stop if eBay keeps refunding them. Finally, the supervisor understood my point and opened a case, AND, then closed the case in our favor, NOT refunding the buyer. THAT IS HOW THESE EVENTS NEED TO BE HANDLED, (but without having to contact a supervisor). This is the policy change that needs to be implemented if this scam is to stop.
I told the supervisor my main goal here is not to receive the refund, but to try to get eBay to understand that their policy in this situation is not working, that they are actually causing the scam to continue. These scammers cannot be paid anything. If the scammers don’t make money, there is nothing in it for them, and they will stop. The supervisor agreed and stated he will send that message up the chain to make eBay aware of their (poor) policy, and hopefully make a change.
If everyone who has been a victim of this scam contacts eBay and asks for a supervisor, requesting the same, perhaps eBay will make the change. EBay DOES do a very good job, actually, of listening to buyers and sellers about their policies. I’ve been with eBay since 1998 on a few usernames, and have contacted eBay several times over the years about poor policies. They did make several changes upon my recommendations. So I do know they are concerned about us, more so than any other platform I’ve been on. So if we all voice our concerns to them, maybe they will make the changes necessary to get rid of this fraud. The main change before anything must be that they CANNOT PAY THE SCAMMERS. That is the only way to get this fraud to stop.
