3 Risks of Buying and Selling Online, Part Deux

Ok, so I kinda left you hanging yesterday with my lame post.  Sorry.  It's just that the title of today's post - the risks of buying and selling online - have been on my mind lately.

During the last few weeks I've been participating in an online forum called the Purse Blog Forum.  The Purse Blog Forum originally started as a place for handbag lovers to come and discuss their addiction of choice - Chanel, Balenciaga, LV, Gucci, Fendi, Prada, etc etc...  It's grown to be a fairly large online community that also accommodates shoe lovers, jewelry lovers, and avid shoppers in general.

There is a section in the Purse Blog Forum dedicated to buying and selling on eBay.  It seems like every other day (more like every day) a thread will pop up detailing how some poor unfortunate buyer or seller was defrauded through eBay or Bonanzle.  Reading the stories makes me feel very vulnerable to the risks I'm taking, but it's almost like the proverbial accident on the interstate - I can't stop looking.

Granted, as a seller I am probably less of a target for scams than I would be as a buyer.  However, I've chosen to take certain risks that leave me open to being taken.

In general, I've come to the conclusion that if I really want my business to grow, and if my focus is on maximizing sales while minimizing costs, I have to continue to take some risks, with a few safeguards.  Here are the things I will and will not do while trading online:

1) The Nature of My Items.  Though I have found some AMAZING deals on more expensive items, I tend to limit my online inventory to items I am fully prepared to lose.  My mental limit is $300.  All businesses are exposed to risk, and while I have not had any problems I am fully aware that I might lose one of my items at any point.  $300 is the most I am willing to risk in an eBay transaction - as measured by what I paid for the item, not how much the buyer paid me.  The exception to this is when I am trading OFF eBay with some of my non-eBay clients - but for the most part these are people I know and trust.

2) Shipping Abroad.  Being a foreigner myself, I find it slightly offensive that some sellers would consider it more risky to sell abroad, and refuse to do it altogether.  Some of them won't even ship to Canada.  Given what I've already said in point number 1, I will ship nearly anywhere using Priority Mail with tracking and signature confirmation.  About a third from my sales have come from abroad, and I'm not about to lose a third of my sales!

3) Buying and Selling Off eBay.  eBay is very fond of scaring people into not doing off-eBay transactions.  I personally think it's a bunch of hooey - all they want is their fees.  Of course, certain precautionary measures have to be taken.  As a buyer, request an invoice with a description of the item, and pay with Paypal using your credit card.  If something goes wrong, try to get your money back through Paypal but if worse comes to worse, do a chargeback on your credit card.  As a seller, you're probably a lot less likely to get ripped off off eBay, because ON eBay buyers have all the power.

4) Accepting Returns.  The number one scam perpetrated toward sellers is the "bait and switch" - buying a real item, exchanging for a fake.  It goes something like this: Buyer says: Thanks, I got the item but it's not what I wanted, if you don't let me return it I will give you a negative.  Seller says: Fine, send the item back and I will give you a refund.   Buyer sends fake item.  Seller says: This isn't the same item I sent you.  eBay says: Too bad seller, you have no way of proving that.  Send the buyer a refund!  From my perspective this can happen whether you openly accept returns or not (and also - remember point number one).

I know it's only a matter of time before I have a negative eBay experience, but I think it comes with the territory.  If and when it does happen, believe me, you will be the first to hear about it!