What Is The Proper And Ethical Way To Buy And Sell Goods Via Internet Classifieds?

[MinusTheBear]

1) What are steps that should be taken between the buyer and seller to pull off a flawless transaction?

2) What do you need to setup on your paypal account (is having your credit card set up enough to buy and recieve payment or do you have to merge your bank account to paypal)

Here is an example:

Seller: Brand X speakers for sale for $200

A buyer is interested in Brand X speakers and is willing to pay $200 via Paypal and wants the speakers shipped to his home. Seller accepts.

How should this transaction unfold? (when should the seller recieve payment via paypal, who pays for shipping/insurance/packaging etc).

Thanks for the advice!

 

[Jack Hammer]

I'm not positive about the Paypal part, someone else will have to verify, my understanding is you need to be a Paypal verified member in order to recieve payment. That just means you link a bank account to your Paypal account.

For selling, my experience has always been that the buyer pays for the item once a price is agreed upon. Then the seller ships the item. Once recieved, the buyer leaves some sort of feedback.

That price may be all inclusive or be the cost of the item, the cost of shipping, insurance (if opted for), and in some cases an additional 3% to cover Paypal fees. Some sellers include shipping in their price, some say plus shipping. All those details should be worked out in advance if not stated in the ad. Regardless, the entire amount is paid upfront to the seller.

Sometimes people will use a brokerage house as a middleman. How that works is the buyer pays the money to the broker, who holds the money in escrow until the seller ships the item and the buyer recieves it. Few people do this as it ups the costs to both sides and can be troublesome.

Jack

 

[dan711]

1) What are steps that should be taken between the buyer and seller to pull off a flawless transaction?

2) What do you need to setup on your paypal account (is having your credit card set up enough to buy and recieve payment or do you have to merge your bank account to paypal)

Here is an example:

Seller: Brand X speakers for sale for $200

A buyer is interested in Brand X speakers and is willing to pay $200 via Paypal and wants the speakers shipped to his home. Seller accepts.

How should this transaction unfold? (when should the seller recieve payment via paypal, who pays for shipping/insurance/packaging etc).

Thanks for the advice!

Regarding your example, buyer pays $200 to seller, then seller ships item to buyer. Shipping, packaging, and insurance costs should be disclosed by the seller. As a buyer you should know from a seller how much the total bill is (item, shipping, insurance) before agreeing to purchase item.

It helps, if using Paypal for payment, to have a bank account linked to your Paypal account. At least, that was the case when I opened an account with them 5-6 years ago.

 

[OttoMatic]

On more expensive transactions, I like to talk with the guy on the phone. I'm sure it's not foolproof, but I like to think that I could sniff out a used car salesman or a snake.

The key to the buyer's happiness is getting what was expected. As long as the seller is up front on what's being sold, and any damage, scratches, etc., the buyer shouldn't be disappointed.

The key to the seller being happy is him getting paid. This should be relatively safe with PayPal.

It's been so long since I set up my PayPal account that I don't remember those details. I know mine is hooked to my bank account, but I don't know if it's necessary. You can speed up transactions and increase security (I believe) if you "verify" your account.

Good luck!

 

[phlakvest]

When your paying with paypal there is the option to have it come directly out of your bank account, or you bank ATM/Debit card.

When buying from someone directly, as opposed to through ebay or a store, make sure the money is coming out of the debit card.

If it comes from the debit card and the buyer takes the money and runs you are protected by the debit cards fraud protection. If the money comes directly out of your bank account your are out of luck. (My friend learned this the hard/expensive way.)

 

[OttoMatic]

Oh, regarding the 3% fee that so many tack on for using PayPal -- I believe it's explicitly prohibited by the rules of PayPal. That's why you never, ever see people charging the 3% on eBay, because eBay enforces that rule.

Personally, I think it's a bunch of crap to dump that cost to the buyer. Nowhere else that I can think of does the buyer explicitly pay the fees for credit card processing. When I go to Home Depot, the price is the same for cash or charge. Now, that cost to Home Depot is built into the cost of the item that I'm buying, so I end up paying it for (or at least sharing it with) Home Depot. So, regardless of the rules of PP, I think that that the seller should pick that fee up, as it's so traditonal in selling. Also, the buyer is paying shipping and sometimes handling.

So, as far as ethical and legal -- don't charge PayPal fees to the buyer.

 

[MinusTheBear]

If the buyer is paying for the shipping costs for the item and shipping is not included in the price asked, does the seller get the quote from the shipping company, pay for the shipping up front and then add it to the final cost of the paypal transaction before the seller ships it? Also what happens if goods are damaged during shipping (taking into account the items were properly packaged and insured by the seller)

Thanks again!

 

[OttoMatic]

If the buyer is paying for the shipping costs for the item and shipping is not included in the price asked, does the seller get the quote from the shipping company, pay for the shipping up front and then add it to the final cost of the paypal transaction before the seller ships it? Also what happens if goods are damaged during shipping (taking into account the items were properly packaged and insured by the seller)

Thanks again!

Yeah, make the deal for the price of the item (without shipping), figure out what shipping will cost and then execute the final bill.

If goods are damaged in transit, it's the buyer's problem. So, if it gets to the other end and it's broken, that guy will contact UPS or whoever, and UPS will inspect the item and then deal with the SHIPPER. If it's not insured, you're SOL. If it's insured, you'll get the insurance money, and you'll have to refund the money to the seller.

 

[MinusTheBear]

If the stuff was not properly packaged by the seller than the buyer can give the seller bad feedback then...

 

[OttoMatic]

Yeah, if it's not properly packed, then UPS or FedEx won't pay out the insurance -- then you'll have a busted item, no money and an unhappy buyer! I pack the heck out of everything I put in the mail (especially with UPS, which I actually don't use anymore -- I know there are horror stories out there for every shipper, but I've had much, much better luck with FedEx than UPS).

 

[rnatalli]

I just sold my Oppo DVD player and followed the same procedure I always have:

1. Buyer and Seller agree on a price.
2. Buyer PayPal's funds to seller's account (I always use PayPal as it protects both the buyer and seller).
3. Seller ships product and emails tracking number to buyer.
4. Buyer receives product.

I've never had a product get damaged in shipping, but if it did, I'd see it as my responsibility to contact the shipping company and refund the buyer's funds even before receiving the insurance funds from the shipping company myself. I always ship insured.

 

[Jack Hammer]

If the buyer is paying for the shipping costs for the item and shipping is not included in the price asked, does the seller get the quote from the shipping company, pay for the shipping up front and then add it to the final cost of the paypal transaction before the seller ships it? Also what happens if goods are damaged during shipping (taking into account the items were properly packaged and insured by the seller)

Thanks again!

Say the sellers ad looks like this, "widget-5000, used like new. $200, shipping $30 conus, Paypal add 3%." You would know its flat rate shipping in the continental US and an extra $6.90 if you pay via PP. You could always tell them where you are and see if they will lower shipping.

If it was more generic, "widget-5000, used like new. $200, plus shipping." You would want to ask if they take PP, at which point they might say "for an extra 3%", and you would ask "how much for shipping to xxxxx?" Then they'd get a quote from say UPS and tell you, its $27.12 to ship, plus PP and item.

Damages get tricky, if its properly packaged it becomes your problem and you have to get the seller to take it up with the shipping service. If it's poorly packaged, the seller needs to take it back and now you have to try to get them to refund your total costs plus return shipping, basically its a big headache where generally you file a dispute with PP and everything is tied up for a bit. I had this issue with an 85# amp I bought online where the guy put it in a garbage bag in a single box with some packing p-nuts. Not to shockingly, it got damaged and I had to fight with him to get a refund. Generally, I've had good luck, as most people are honest at heart and will do the right thing after the sting wears off.

Jack

 

[davidtwotrees]

You guys have pretty much covered it. As for the ebay experience.........I won't bid on or buy from an inexperienced seller. I bought my Pio A35R from a guy with like 15 feedbacks, and only 4 from selling. It was in as new condition for $100 shipped. Good deal. He packed it like he was shipping a pair of blue jeans, or some magazines with the unit rattling around in a single box! I was flabbergasted that anyone would do that, but he seemed to think it was a good pack job. The unit has a good sized dent and a dinged corner, but works fine. It wasn't worth the time to send it back. I WILL NOT BUY FROM ROOKIES ANYMORE. If I am buying an expensive item I make sure the seller is up to snuff, and ask for a double box.
To me, it all boils down to communication. The better the seller and buyer communicate, the smoother the transaction, and there is a rapport established in case of a problem. When I sell gear it is packed bullet proof. Double boxed. Bubble wrap, styrofoam. I would drop one of my pack jobs off a six foot ladder to prove it, too.
So, buy from an experienced ebayer. Communicate. Establish what the pack job will be like. Double box is a must for delicate and or heavy electronic gear.

Many here bash Ebay but all in all my experience there has been a great one. I love Ebay.

 

[Jack Hammer]

To add to what davidtwotrees said about clarifying packaging, be specific and explain you've had or know people who've had bad experiences. Apologize if neccessary and ask until you're positive what is meant. The guy who sold me the amp I mentioned before said it would be properly &, IIRC, professionally packaged. I didn't ask him specifically what that meant. What showed up was an 85# amp wrapped in a kitchen garbage bag and loosely placed inside a thin cardboard box that was partially filled with packing p-nuts. "Properly packaged"

Jack

 

[davidtwotrees]

Jack, that's amazing! My first HT receiver was a Pio Elite 09 receiver. A tank. The guy put it in the middle of a 3' x 3' box full of peanuts! From California no less! It arrived ok, but had worked it's way to the bottom of the single box. One drop and it would have been toast!
Another tip........I try to order stuff in my region of the midwest. The less handling the better........

 

[Nemo128]

I like to conduct online sales away from things like eBay in the following manner:

1. Fixed price agreement through e-mail to serve as contractual agreement. Agreement to contain a fixed shipment date with a tracking number supplied. Stipulate that the transaction will be disputed with payment processing agency if tracking number is not received (more in step 2).

2. Payment through Paypal or other online means with a credit funding source that has a VERY STRONG protection and dispute dept. My current favorite is Chase's Platinum and Freedom products. Also, check the seller's Paypal status if using Paypal. I never send payments to sellers that don't have a Premier account to accept CC payments with.

3. If possible, inspect package thoroughly before signing for it.

Impossible to get robbed using this process. CC companies have enough resources to throw behind theft investigations, and I have never failed to get my money back within a couple days for transactions ranging from $50 to $2000.

Word of caution. Paypal will NOT give you your money back. Paypal will only attempt to get the money back from the selling account. It's clearly stated in their terms as well. Any decent CC will give you your money back no matter what and deal with the seller their own way without giving you any grief.

My 2c.