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eBay to Tweak "Item Not Received" Process
By Christopher Saunders

November 18, 2004


Fresh for the new year, eBay plans an overhaul of its "Item Not Received" process, which could have important ramifications for buyers and sellers on its service.

Scheduled for January, the e-commerce giant plans to implement a set of product and policy changes that it hopes will create a simple and straightforward process for starting buyer-seller discussions on disputed transactions (and ideally, resolving them.) But the plan also could reduce the number of superfluous complaints.

The company said on its announcements page that the enhancements are designed to "take the mystery out of what to do when the buyer has not received an item or has received an item that is significantly different from what was described in the listing."

eBay added that under the present system, merchants and buyers alike may not be certain of what to do when such a problem arises -- which can lead to lost goodwill and negative Feedback postings.

Accordingly, the company said its changes would help both parties understand what actions to take if a disputed transaction occurs.

Under the planned system, buyers will be able to begin a discussion with sellers from within their My eBay screens. eBay said the system would walk buyers through the process, providing tips and highlighting next steps to take.

The My eBay page also will feature a new Dispute Console, which will list ongoing problems, helping buyers and sellers track their status. This also will apply to Unpaid Item problems.

eBay also said it would promote education for new buyers, to ensure they're familiar with the processes to resolve disputes.

The system also will enforce a seven days "waiting period" before a seller can initiate a dispute. Ideally, this can cut down on problems by ensuring that buyers have time to learn about standard delivery times and other processes related to eBay transactions.

On the other hand, eBay also is reducing the amount of time necessary for buyers to wait before filing an official claim through eBay's Standard Purchase Protection Program. Under the current system, a customer must wait 30 days before filing a complaint. The new system would cut that time to 17 days.

The changes also more closely integrate eBay's PayPal into the mix, for disputed transactions that use the alternative payment system. Now, PayPal unit will automatically begin assessing buyers' claims after they open a dispute -- determining whether the claim is eligible for coverage, based on criteria set in the PayPal Buyer Protection or the eBay Standard Purchase Protection Program.

The plan builds on earlier efforts to beef up the amount of and procedures surrounding buyer protection. In October, the company said online shoppers using PayPal in their eBay transactions would get up to $1,000 of buyer protection.

The move by PayPal, which is owned by eBay, doubled the coverage from $500 for qualified transactions on the e-commerce and online auction site. The expansion took effect earlier this month and covers approximately 80 percent of all eBay-listed items, the company said.

The protection is extended only when certain purchasing conditions are met -- such as when transactions result in non-delivery, or the delivery of items that are significantly not as described. The protection also extends only to transactions completed with an eBay-qualified seller -- defined as one who maintains a 98 percent positive feedback rating and has at least 50 feedback points.

Company reps said the company's buyer complaint process would still be available for transactions that do not qualify for PayPal Buyer Protection. eBay's standard purchase protection offers $200 of coverage with a $25 processing fee.

Weeks earlier, eBay took additional steps to enhance its procedures by expanding its Feedback Withdrawal process. Under the changes, it put in place a third-party review process in eBay Motors.

In addition to those initiatives, PayPal in June debuted Buyer Credit, enabling shoppers to sign up for financing for higher-cost items they purchase on eBay and elsewhere on the Web.

Christopher Saunders is managing editor of ECommerce-Guide.com.

Do you have a comment or question about this article or other e-commerce topics in general? Speak out in the SmallBusinessComputing.com E-Commerce Forum. Join the discussion today!

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