Educate yourself about the common eBay scams listed here. The more you know about what the scammers are doing, the less likely you will fall prey to them.
Item Not Received Scam
Scammers often prey on newbie sellers that don't understand the rules of using PayPal. Many new sellers don't know about delivery confirmation. The scammer will use PayPal to pay for the item and wait for it to be delivered. Once the package arrives, the scammer will check if delivery confirmation was used. If it was, then you are safe and the scammer and will try to find another victim.
However, if delivery confirmation is not used, the scammer will open a dispute with PayPal and claim the item was not received. Unable to show proof of delivery, PayPal takes the funds out of the seller's account and returns it to the scammer. There is nothing the seller can do other than learn a hard lesson.
To prevent this type of scam from occurring, clearly state delivery confirmation will be used in the item listing. This will prevent scammers from bidding on your items in the first place. Shipments using UPS, FedEx, and DHL automatically come with delivery confirmation. You must add delivery confirmation for packages shipped by USPS. Keep the delivery confirmation number for at least 45 days after the payment was received. This is the time limit for buyers to initiate claims against sellers.
Over $250 PayPal Scam
This scam is similar to the "item not received" scam. Again, the scammer will use PayPal to pay for the item and wait for it to be delivered. The difference is the item sells for $250 or more. When the package arrives, the scammer will check if signature confirmation was used. If so, the scammer will leave the seller alone and move on.
If not, the scammer will open a dispute with PayPal and claim the item was not received. Even if the seller used delivery confirmation and can show the item was delivered, it will not help. Without proof of delivery using signature confirmation for items $250 or more, PayPal will take the funds out of the seller's account and return it to the scammer. This is an extremely hard lesson to learn as the item may have been quite valuable.
This exact scam happened to me. I sold an item for $254 to a scammer using delivery confirmation. The scammer claimed to PayPal the item never arrived. I was able to show proof of delivery with delivery confirmation. I pointed out the buyer had bad feedback and similar issues with other sellers. I mentioned the item was only $4 over the $250 limit. None of it worked. PayPal took the money from my account and gave it back to the scammer. I learned a hard lesson.
To protect yourself from this scam, always use signature confirmation for items that sell for $250 or more when PayPal is used. Add an extra $5 to the handling fee to cover the extra cost of using signature confirmation if you know your item will sell for over $250. Pay for the signature confirmation out of your own pocket if necessary.
Blame The Shipper For Damaged Item Scam
A scammer will have a broken or damaged item that he wants replaced for free. The scammer will search for an eBay seller selling exactly the same item and offering shipping insurance. After the item is received, the scammer will switch the unbroken item for the bad one and claim it has been damaged.
If the shipper grants the insurance claim, the scammer will get his item replaced for free. If the insurance claim is denied (because there is no damage to the box and the scammer forgot to smash it), the scammer will have the credit card company reverse the charges. If the purchase was eligible for seller's protection, then you will be protected and PayPal will eat the loss. Otherwise, PayPal will take the money from your account. This is a tricky area as PayPal will not cover claims of shipping damage.
You can protect yourself from this scam by taking pictures of serial numbers or other unique identifying features. Be sure to include them in your listing. Scammers will avoid listings that can prove the item has been switched.
Fraudulent Item Scam
This scam is quite simple. The scammer will list something they don't have. Usually the item is expensive such as a digital camera. When the buyer pays for it, the scammer takes the money and disappears. Always use PayPal for purchases as the buyer is protected against non-receipt of the item. Make sure the amount of the protection covers the final price of the item.
Counterfeit Item Scam
Knockoff products are everywhere and eBay is no exception. Tiffany and Co. has publicly stated that 75% of all Tiffany products sold on eBay are fake. Jewelry, designer handbags and celebrity signatures are examples of categories full of counterfeit items. I have seen fake plastic Canon cameras intentionally designed to look like expensive professional cameras. It is buyer beware situation and buyers need to know exactly what they are buying. The seller actually may not realize that they are selling a knockoff product.
To protect yourself from receiving counterfeit products, do some research. There is a lot of information on the web offering tips on how to detect a counterfeit. Always use PayPal for your purchases. The buyer protection policy provides protection when the item is not as described.
Thanks for your encouraging comments, lovbug. Anyone know any other Scams to watch out for?
Switch and Return - This is where the buyer will buy the item, and return it after receiving it. However, the item that they return is not yours, but theirs. Their purpose, to upgrade their product without paying any money out. So, if a buyer contacts you with questions about your return policy-that's a red flag.
