subject: Tired of Not Getting Paid for Your Items Sold Online? Address It Now! [print this page] Many online sellers sell less, or simply quit, because they are tired of buyers who do not pay after receiving an item. Many online buyers leave a particular online store and search for alternatives, because they feel cheated in some way after buying online.
Clearly, a seller cannot afford to not get paid. Measures taken by some marketplaces to avoid non-payment include feedback on buyers, or banning buyers who have cheated sellers in the past. Since creating multiple user names cannot be controlled online, banning or negative feedback cannot stop nonpayment issues. If you ask sellers on eBay or Amazon, they cite non-payment as a key issue. A few such episodes can wipe out months or years of profit, setting a seller back, or putting him out of business.
In case of buyers, undervalued products or no products at all become an issue. They view products online, read feedback and pay for an item, sometimes to see that they get a low quality item than assured or never hear from the seller again.
As escrow mechanism is good news for buyers and sellers alike. It is very simple, yet the safest measure against nonpayment for sellers, and against fraud for buyers. A seller ships only when he knows payment is in escrow. Yet the seller receives the money only when the buyer receives the product and is satisfied. The payment, held in escrow during this time, is released to the seller as soon as buyer indicates acceptance, or when buyer's acceptance period expires. If seller does not ship, or if buyer is dissatisfied with what the seller has shipped, buyer can return the item. In that case, buyer's money is refunded. As shipments are tracked, and the status of a payment in escrow is known, risk is avoided. To enable anonymous buyers and sellers to transact with each other without transaction history, yet without risk, escrow provides an effective solution. Buyers and sellers can extend their sphere of trust, and buy/sell to/from anyone.
The only drawback with escrow is that sellers may have to wait for two weeks for domestic transactions and three weeks for international transactions. Compared to payment by invoice, such delays are reasonable. Compared to not getting paid, an escrow-based system may be the difference between staying in business or exiting.
Tired of Not Getting Paid for Your Items Sold Online? Address It Now!
By: suli
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