eBay - Sales and Fraud Are Up
EBay has made a mark in Internet history as being one of the most successful endeavors of its kind. Beginning in 1995, eBay appeared online as a mom and pop online garage sale. Now it is an auction empire that last year's success included over 546 million items listed for sale. However, the success has not come without problems including an increase in disputes and fraudulent transactions.
Disputes range from a spot on a pair of trousers to the more serious problem of intentional fraud when items are bought but never sent. Exactly how many disputes haunt eBay users is uncertain since eBay does not disclose the numbers. What eBay has reported is ambiguous at best.
How Much Fraud Does Go On at eBay?
According to eBay, 1/100 of 1 percent of last year's items listed on sale could be confirmed as fraudulent. This means roughly 54,600 items listed were tagged as fraudulent. Since this total is based on items listed and not sales transactions, it fails to give an adequate picture of what is really going on at eBay.According to eBay, fraudulent transactions are defined as either a seller who sends an item that is damaged (without prior discloser of the damage), counterfeit, or fails to deliver or a buyer who fails to pay for items received. According to reports, the figure does not include disputes settled by chargebacks issued by credit card companies or complaints reported past the allotted time eBay allows.
What Is eBay Doing to Help?
During the 2006 annual 'eBay Live!' event, president and chief executive Meg Whitman addressed problems now plaguing eBay and listed some of the changes implemented to help manage these issues. A major focus was on actions eBay has taken to improve the process in which disputes are handled.From comments on the various eBay communities one thing is certain - many feel eBay could be doing more to help protect those who use their services. In response to this general attitude, eBay executives admit they are not experts on everything, but that they are aggressively working to find solutions to the growing problem of fraud.
Tips On How To Avoid Becoming a Victim
Who Are You Doing Business With?eBay uses a "leave a comment" method in which buyers and sellers rate one another. Although this method is not foolproof, it can provide insight into the person you are about to enter into a transaction with. eBay suggests, "Before you bid on an item, you can check the seller's member profile by clicking on the feedback score next to their User ID, or by using the view feedback request form."
Use PayPal
PayPal is an eBay Company and enables any individual or business with an e-mail address to securely, easily and quickly send and receive payments online. By using PayPal, your financial information is never exposed to the seller.
Pay With a Credit Card
PayPal will accept your credit card or debit card as form of payment. Later if you need to dispute the transaction, you can do so with your credit card company or bank. This is one of the few ways you can sometimes avoid being burned by an eBay fraudster. If you dispute a charge on your card, your bank may issue a "chargeback" until the dispute is resolved.
Cash and Cashier Checks
It is strongly recommended that any seller who insists on cash or cashier check for payment be avoided.
The burden to protect oneself against fraud still lays on the shoulders of those taking part in the auctions. By using the guidelines laid out on eBay's security pages and visiting sites designed by eBay experts such as Bob Bull, becoming a victim of fraud at eBay may be avoided.
See Also:
Bidding on eBay: Do Your Research First
Bidding on eBay: Smart Bidding Practices
Fake PayPal and eBay Emails Collect Data for Identity Theft
Here is a good resource to pass on to everyone. If you love hunting down those eBay bargains then this is for you. I’ve got it bookmarked and check often when I’m shopping for something, but sometimes it’s just fun to browse too. You never really know what kind of treasures you’ll find.