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Online Auctions Verses Store Retail Sales

by: azbob*1( 18283Feedback score is 10,000 to 24,999) Top 5000 Reviewer
3 out of 4 people found this guide helpful.
Guide viewed: 690 times Tags: auction | Deadbeat | not as discribed | Auction help | CHARGEBACK


From time to time I do come across a buyer that does not understand what the difference between auction and a retail sale. Hopefully this guide will show the advantages & disadvantages there are between these two types of sales for the new buyer or seller. I use both techniques of selling.and is based on experiences with selling on eBay.

 Auctions Verses Store Retail Sales

AUCTIONS  Traditionally started at a started at a low as possible price & goes to the highest bidder. By their very nature it is a final sale. The seller is responsible to describe the item & the buyer responsible to understand what is being sold. If the buyer does not understand they should ask questions. One variant I use is the Fixed Price auction. Big plus is the buyer can usually count on a good price because the seller should not have the expense of returns. The risk for the buyer is if the buyer does not read the ad or just looks at a picture, then bids they are stuck purchasing a item that they will need to resell. Advantage for the seller is they have a avenue to move product because a buyer is always looking for a deal. Down side for the seller, even though you go into detail and list your terms & conditions of the sale you will have someone from time to time that does not read a auction and then blames the seller. One interesting phenomena is this does not happen with international sales. Seems to me as if a buyer does not correspond regularly in English they tend too read a description thoroughly.

RETAIL STORES Generally a retail store has everything set at a set price. The buyer has a advantage of a return if there is a problem or even no problem at all. Could be they just made a mistake and want to do a return. I do the same thing as a STORY INVENTORY listing. Many charge a restocking fee but I choose not to as yet. For returns my policy is allow a return if it was a store inventory sale & refund not including shipping & handling. Down side for the buyer is they tend to pay more because the seller has more expenses with this type of sale.

Buyers & Sellers Remedy's

We don't live in a perfect world. Things do go wrong the best thing to do is make it right.

BUYERS The best thing a buyer can do is first reread the "terms & conditions" of the sale in the ad then contact the seller if they made a mistake in buying the item. Blaming a seller that you did not read a description or study this picture is not the sellers fault and will most likely get nowhere. Remember a sale on eBay is a legal obligation to pay for the item. An offer to pay for the sellers expenses for the sale will help but try to stay within the descriptions terms and conditions of the sale. If you did what you were supposed to do like read the description a studied the picture & the seller clearly made a mistake in the listing still contact the seller. Most will be glad to work with you. Squaretrade is a great mediation source that works with eBay.

Please understand that a seller has costs involved with the sale. There are rare few buyers who incorrectly  believe just returning a item or not paying for a sale costs the seller nothing because it can be simply resold. For Example:

1. The cost wholesale of the item.
2. The eBay charge for the listing fee.
3. Boxes & packing materials must be purchased.
4. Help must be paid to pack the item
5. Shipping Costs
6. Most cases another item is wholesale bulk ordered to replace the one sold or a sale in progress.

SELLERS I know the frustration you may feel You spend hours to get the great picture describe your item in detail, list the terms & conditions you wish to sell your item. Then you have a deadbeat, joy bidder or have someone file a not as described complaint on paypal. Be thankful this does not happen all the time. If you made a error correct it, most buyers understand & will most likely give positive feedback based how well the correction was made. If there was no error you can just give in to the buyer & let them change YOUR terms & conditions or like me stand your ground. Believe it or not sellers do have rights. It is a legal obligation for the buyer to pay for the item.

1. File a nonpay dispute on eBay including if it has a "not as described" complaint on paypal. You will not get your listing fees back but you will get your final value fees back.
2. Second step file a Squaretrade mediation case. This will help if the buyer is willing to mediate.
3. Third step if the "not as described" complaint goes through report the crime to Internet Fraud Complaint Center IFCC
4. Fourth turn over to a collection agency. I've had some success  here. Failure to pay for your item then goes into the buyers credit history.Paying for your item is less than the extra interest that will be paid on future loans.
5. Fifth file small claims action (if within your state) Even though paypal rules in the buyer favor. Paypal is not a court



Guide ID: 10000000004107576Guide created: 08/03/07 (updated 04/12/08)

 
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azbob*1
azbob*1( 18283Feedback score is 10,000 to 24,999) Member is a PowerSellerAbout Me
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