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Tips for Avoiding and Dealing with Non-Paying Bidders

by: jaybrokers( 3192Feedback score is 1000 to 4,999) Top 5000 Reviewer
11 out of 17 people found this guide helpful.
Guide viewed: 1299 times Tags: avoid | non | paying | bidders | buyers


Non-paying bidders are probably one of the most frustrating problems to deal with when selling on eBay. How can you reduce non-paying bidders to make your selling experience more satisfying? This guide contains several recommendations to help you proactively reduce non-paying bidders while giving tips for successfully collecting payment.


1. Use eBay buyer requirements when selling items

Thankfully, eBay gives sellers the option to establish requirements for potential bidders. This helps block the non-paying bidders. You can set criteria to block buyers who do not meet certain criteria. For example, you can block buyers who...

  • Are registered in countries to which I don't ship
  • Have a feedback score equal to or lower than -1
  • Have received 2 Unpaid Item strikes in the last 30 days
  • Don't have a PayPal account


You can set the criteria in your eBay account or when you sell an item (look for it on the last review page "Buyer Requirements"). Setting buyer requirements will block a great majority of non-paying bidders, yielding immediate benefits.


2. Set clear expectations for payment terms

Specify in your auction listing how soon you need to receive payment after the auction ends. Specify what will happen to buyers that choose not to pay (i.e. unpaid item strike, etc.). A fair and balanced payment deadline is 3-7 days from the auction closing time.


3. Monitor bidders closely

Carefully watch your listings for bidders with low feedback scores or low positive to negative ratios (less than 95%). If you see anything suspicious, contact the buyer and kindly inquire if they are serious about the auction. If not, you can at least cancel their bid ahead of time to avoid a non-paying bidder.


Check bidders' recent feedback comments to determine if they have successfully completed recent transactions with other sellers. A bidder may have a high positive to negative feedback ratio, but the negative comments are all within the last 30 days. If a bidder's feedback profile looks suspicious, contact them and inquire. You can easily cancel any bid on an auction by using the "Manage Bidders" feature within "My eBay."


4. Prompt follow-up and communication

Always respond promptly at the end of the auction with an invoice through the eBay invoice feature, along with a courteous e-mail congratulating the buyer on winning the item and let them know the item is boxed up and ready to ship out as soon as payment is received. Provide incentive for the buyer to promptly send payment. For example, inform the buyer payments for items received by 10 A.M. are shipped out the same day.


5. Additional follow-up (if necessary)

If you do not hear anything from a winning buyer within 2-3 days of the auction close, attempt another e-mail follow-up. You may consider asking the buyer if he or she has plans to pay for the item, or if not to simply let you know upfront so you can release him or her from obligations to pay, while saving yourself from wasting time (then you can relist an sell to another bidder). After 5 days or more have passed, you may consider a courteous phone call follow-up. You can get a winning bidder's phone number through the "Request User Information" feature in the Advanced Search page (available from most pages). Call the buyer and again, congratulate them on winning the auction and just inquire if they have any questions about the payment process (be very friendly and polite).


6. Avoid accusing or rude gestures

Although it may be tempting, do not threaten to take action or be rude to non-paying bidders, even if it has been over 3 days without an e-mail or payment. Being rude or making threats will probably not motivate the buyer to follow-up and pay. In fact, being rude may motivate them to leave erroneous negative feedback on your account. The anonymity of the Internet causes people to do things through eBay and e-mail that they would never consider doing in person, but the anonymity factor often blinds their conscience.


7. Utilize the unpaid item reporting tool

For some non-paying bidders, it may take utilizing eBay's unpaid item reporting tool. You can access the feature in "My eBay" under each item's menu options. However, you can only file an unpaid item report after 7 days from the auction close. Once 7 days have passed, go ahead and file the unpaid item report and select from the options presented that describe your situation. If the bidder still does not pay, you can close the unpaid item report after certain requirements are met, and at least you get a refund for your eBay selling fees and then the buyer gets an unpaid item strike (multiple unpaid item strikes will suspend a bidder's account). If a buyer does not respond to an unpaid item notification, their feedback privileges are taken away, so you do not have to worry about the buyer leaving negative feedback on your account (wait to leave negative feedback until 8 days after opening the unpaid item notification after it has been closed).


8. Utilize the second chance feature

If you are desperate to sell an item quickly, and the winning bidder does not follow through to pay, you may consider utilizing eBay's second chance feature, which offers your item to other bidders on the auction at their highest bids. The downside is you cannot offer the item to other bidders at the higher, winning bid, but rather at the particular bidder's highest bid (it will be lower than the closing price). However, in some cases the next highest bid may only be $1 difference. In any case, the second chance feature is not always successful, but it is worth a try.


Summary

In any case, try to see the best in people to begin with. Avoid making conclusions about a non-paying bidder, even though it can be frustrating to deal with. You will be amazed at how a friendly attitude can make all the difference.



Written by Justin Pepple. Copyright 2007. All rights reserved.

Guide ID: 10000000003582376Guide created: 05/11/07 (updated 10/06/09)

 
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