Best Practices to Avoid Non-Paying Bidders on eBay and Complete More Sales
They’re out there. They’re the bane of every seller’s existence. They’re the dreaded non-paying bidder. Anytime a bidder wins an item and then refuses to pay it costs sellers time and money in dealing with the non-paying bidder, not to mention the frustration that they cause. I have felt the pain caused by non-paying bidders and have put together a list of ways to help sellers avoid and deal with non-paying bidders on their auctions. I have sold all sorts of things on eBay, from electronics to concert tickets to clothing and then some. So, rest assured that these strategies will work across multiple categories.
Steps you can take to prevent non-paying bidders:
- I use ReliaBid (www.reliabid.com)— it’s a seal program that is effective at deterring non-paying bidders. As an added protection they offer members access to debt collection services. Since becoming a member my non-paying bidder rates have plummeted. It is really one of the best services out there for sellers today.
- Be very descriptive in your listings—make sure that you are specific in detailing exactly what the item is for the bidder.
- Explain all policies clearly in the listing. Include all payment methods you accept. This is especially important if you only accept certain payment methods. Include your shipping rate clearly. Auctions that have high shipping rates, hidden shipping rates, or shipping rates that are buried are more likely to meet payment resistance, than those where the buyer was easily and clearly able to identify the shipping rate. This also means that having a flat rate, rather than a calculated rate, is preferable.
- When possible, choose to sell via “immediate payment”. When you utilize the Buy-It-Now feature, those making the purchase are required to immediately enter their payment information. Thus, if they decide to back out of the purchase, the item will continue to be listed, effectively canceling the transaction.
- Send invoice immediately after the auction closes. Be sure to reiterate in the email payment options and include any links to payment websites or mailing addresses. Give a date when payment is due. It’s helpful to once again reiterate in these emails if you’re a ReliaBid member. I’ve seen my winning bidders come through on the payments faster since I began including a side note in my invoices about ReliaBid.
- Require that those with little or no feedback email you prior to being allowed to bid on your items. Sometimes it’s easier to just catch the newbies before a potential problem occurs.
- Use multiple methods of contact: email through eBay, email directly, phone, and possibly snail mail (although if you are using ReliaBid, they will take care of the snail mail portion for you).
- Do not leave feedback until the transaction has been completed or you have completely abandoned hope of payment.
Steps you can take to handle a non-paying bidder / unpaid item:
- Send a “last notice” invoice informing the winning bidder that as a member of ReliaBid, you have access to one of the leading debt collection companies in the nation and if they do not pay, they may be subject to credit reporting. Putting this notice into a “last chance before collection” message will grab more attention than a basic “please pay me” email. People respond when they think their credit may be at risk.
- Request the bidder’s information from eBay’s system. Include this information in your last notice email. When people realize that you have their contact information beyond an email address, they will take you more seriously as a seller because you have the ability to find them—they can no longer hide behind a user name.
- After 7 days, you can report the item as unpaid and initiate a non-paying bidder dispute with eBay— however, you may only recoup your final value fee credit. Don’t count on getting your listing fees back – eBay will credit you back RE-listing fees, but only if the item sells a second time.
- You may choose to start a professional debt collection, after 10 days, against the non-paying bidder through your ReliaBid membership. With ReliaBid you can receive the full amount for your item, or you will be compensated through a restocking fee for the cost, time and energy you spent holding the item and handling the non-paying bidder. I’ve never had to initiate a collection (the seal has been enough to get rid of my non-paying bidders), but other members I know of have started a collection and were able to receive payment. And really, that is the main goal here.
If you follow these steps you should be able to receive payment on almost all of your transactions, whether you sell electronics, necklaces, sporting goods or clothing. Remember that one or two of these steps is not likely to have a huge impact alone; but like most things in life, a comprehensive approach will yield results. I think that ReliaBid has had the most significant impact for me. I’ve included the references to ReliaBid in payment reminders, etc. to gain a greater value from ReliaBid and leverage their service more.
One other major component to completing more sales (again regardless of category, but I think especially in time sensitive things like concert ticket sales- or anything where the other party is stressed), is providing excellent customer service. My customer service goal is not to just make someone happy, but to put them at ease. If someone is stressed about a transaction, they will not think clearly or rationally about it. Just like in real life if someone comes to you all in a hype or fluster, you will try to calm them before tackling his/her problem. I think it is important to do the same here. Make people understand that you are listening and trying to work with them.
A few examples:
I sell tickets to a music festival. Bob bids on the tickets and becomes the winning bidder. The auction ended less than 7 days before the concert date. I contact Bob shortly after the auction with a payment invoice. I don’t hear back. There is now 6 days left until the concert. I send Bob an email through eBay. Still no reply. At this point I request the user’s information from eBay. I call Bob, but unable to reach him, leave a voicemail. The following day, Bob has not contacted me by noon and it is now only 5 days until the concert. I consider re-listing the tickets, but it has barely been 48 hours since the auction… I send Bob another email. This time I send a cc to ReliaBid, whose seal appeared in the auction, and explain to Bob that he has made a commitment to purchase the tickets, and that as a professional seller, I work with ReliaBid. I explain that ReliaBid will work on my behalf to help complete the transaction and obtain payment for the concert tickets, which Bob has purchased. A critical point: I tell Bob he has purchased the tickets. I do not say he needs to purchase. From the seller’s perspective, a purchase has been made, and credit has been extended. Bob now has an outstanding balance and I am invoicing him for it- just like a doctor would if you didn’t pay at the office. That evening, Bob calls back. He explains that he had not understood the binding nature of the auction and had expected I would just sell them to someone else. I, in a friendly manner, explain that was not the case. I tell him a little about my business and how I got into it to put him at ease. After this, Bob realizes that I am a professional seller, work with ReliaBid (a service that provides professional services to serious sellers) and that he has, indeed, made a commitment he needs to honor. Later that evening I receive payment and the following day I FedEx Bob tickets to the concert.
I list a dutch auction of 2 electronics sets, each of a Sony DVD player and a Panasonic TV as an auction. Multiple people bid on the electronics auction. In the end, I have two winning bidders. One pays right away. The other, Jeff, I send a payment invoice to. In response, I receive an email stating that Jeff thought he was bidding on both sets of DVD / TV. He tells me that he will not pay what he bid for just one set. I review my auction to see if my language was clear. I find that it was very clear. In an effort to be fair, I ask a friend that does not work with me to read the auction and tell me what it is for, they confirm that it was clear that one set meant 1 TV and 1 DVD Player. I contact Jeff by email and explain what I have done and that I disagree that the auction was confusing. I explain (gently) that while there may have been a misunderstanding, the auction was clear and he got a reasonable price and I expect him to honor his bid. Jeff responds that he is not going to do so. At this point, I realize that I need assistance and contact ReliaBid. ReliaBid starts a professional collection and Jeff receives notice in the mail that he must honor his bid or pay a restocking fee. Jeff contacts me and asks how and why he got a letter. I explain that I sell for a living and just like a doctor, I work with a company to process my outstanding invoices. I explain to Jeff that he has made a purchase from me and has an outstanding balance. Jeff complies and sends payment and the debt collection is terminated. I send Jeff the TV and DVD player. After Jeff leaves positive feedback for me, I leave him positive feedback for his payment.
LissaAnderson-TinyBlog 