If you sell items to the Chinese market, especially Asian Art, take the time to read this. Its important.
The Non Payers in China on Ebay Out of Control
During the last few years, the number of of items on Ebay being bought by customers in China and Taiwan and then not paying the bill have jumped massively. This same issue is afflicting the major auction houses around the world with millions of dollars in unpaid invoices as was reported by Bloomberg News this past March. For Ebay its reaching a crisis, as dealers cut back on items being sold on the site which appeal to the Chinese market. Many have had non payments rates as high as 50%, which might spell the end for this category if Ebay cannot get off its ass and do something.
Implicit in the agreements between Sellers and Ebay is the understanding that the seller will not misrepresent his items being sold and Ebay will not misrepresent the qualifications or reliability of the Buyers. The sellers are holding up their end of this agreement/understanding to a much larger extent than Ebay is.
The problem is many Chinese buyers have multiple Ebay accounts or can simply open a new one if they are blocked with the old one and bid anyway. If they have a Pay Pal account their is no requirement the account be funded with enough money to cover purchases. A while ago a Chinese customer told me rather plainly he had over 32 Ebay accounts all with 100% Feedback, which he bought for $10 each...
Read more Click the link below, it GETS WORSE..a Lot Worse
Recently we tried the 2 Strike Filter Option (the most stringent) here were the result on just a few items over a 6 day period.
| Jul-15-12 | * | 102 ( 100%) | Mar-04-12 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-15-12 | * | 102 ( 100%) | Mar-04-12 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-17-12 | * | 731 ( 100%) | Jan-02-11 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-17-12 | * | 74 ( 100%) | Dec-30-11 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-17-12 | * | 74 ( 100%) | Dec-30-11 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-17-12 | * | 41 ( 100%) | Apr-27-12 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-20-12 | * | 240 ( 100%) | Nov-13-02 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-21-12 | * | 3 ( 100%) | Oct-26-11 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-21-12 | * | 3 ( 100%) | Oct-26-11 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-22-12 | * | 49 ( 100%) | May-21-12 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-22-12 | * | 49 ( 100%) | May-21-12 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-25-12 | * | 74 ( 100%) | Dec-30-11 | 160845490248 | Too many Unpaid Item strikes | |
| * | 74 ( 100%) | Dec-30-11 | 160845490248 | Too many Unpaid Item strikes |
Jul-25-12
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| Jul-25-12 | * | 47 ( 100%) | Feb-22-12 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-25-12 | * | 28 ( 100%) | Nov-21-11 | 160845490248 | Too many Unpaid Item strikes | |
| Jul-28-12 | * | 2936 ( 100%) | Nov-29-09 | 160848457660 | Too many Unpaid Item strikes | |
| Jul-28-12 | * | 2936 ( 100%) | Nov-29-09 | 160848457660 | Too many Unpaid Item strikes | |
| Jul-21-12 | * | 183 ( 100%) | Aug-03-08 | 160848511331 | Too many Unpaid Item strikes | |
| Jul-21-12 | * | 183 ( 100%) | Aug-03-08 | 160848511331 | Too many Unpaid Item strikes |
| Note. You'll see several with no Feedback or very little who have 2 or more non payment strikes in the last year and yet they still have 100% Feedback? How is that possible. What this means in a few cases here, they have bought nothing and have reneged on paying on at least 2 items during the last 12 months, yet Ebay presents them as viable reliable customers...with A PERFECT Feedback Score. |
This sampling is only from a few days on a few items. In total over a 15 day period we had over 150 blocked bid attempts for non payment or for not having a Pay Pal account or BOTH. If a buyer is in China, how is he going to pay you without a Pay Pal Account? Very few Chinese have credit cards. So how or why does he have an account to begin with?
The obvious question is why do they buy and no have plans to pay the items? Its easy, in China an entire industry has grown off the back of Ebay sellers where by Chinese buyers win an item and then try to sell it to a customer either a dealer or collector BEFORE paying you, then get the money from their customer, then pay the seller and then have it shipped. If they cannot sell it first, they simply do not pay. The non payers in China on Ebay are out of control.
In China they also have another auction website, a Chinese Ebay member will simply copy your listing on Ebay and put it on the Chinese auction site. They can for example run the item for 7 Days in China, while yours is up for 10 days...they can then bid accordingly on yours based on what their own auction in China brought for your piece. If they win yours and they get paid by the customer in China who bought their listing, you then get paid. If not, you never hear from them again...and you are forced to re-list the item(s). Sure they get a Strike against their Ebay account, but as you can see above, it makes no difference to them. You can block them by user name, but if they have 20 or 40 more accounts, whats the difference? They can bid under another name the next time you list.
The reality is, something is happening in China, from the top end of the market at Christie's and Sotheby's all the way down to small sellers with little websites. Defaults are rising, non payment in the millions of dollars are being felt by the large auction houses and thousands of listings on Ebay go unpaid each month. Strong measures need to be put in place to retake control of the market by honest people. Christies and Sotheby's have instituted large advance CASH payment requirements to simply bid at this point, Ebay needs to make similar moves, before they demolish a section of the site which could be one of it's most profitable. Frankly I hold little hope they will, Ebay has a history of making self destructive moves until its almost or is too late.
Have you ever heard of: 2522 Continental Avenue, El Monte, California? Its a scam freight forwarding operation to China for Ebay buyers... They get so many boxes each day, delivery confirmations have to be manually updated at the local Post Office and it can take WEEKS. In the meantime, the buyer places a complaint for non delivery, gets a refund and later gets his item for free. If Ebay sellers ship via Priority Mail without delivery confirmation and a signature, you will probably have to refund the full amount and eat the loss.
So, what should Ebay do? Its simple.
- First Ebay should simply introduce a NEW rating category called "Completed Transaction Percentage" for buyers. Then permit sellers to decide what percentage they are willing to deal with by setting their own requirements. i.e. I;ll accept bid ONLY from buyers with over 50 Transactions and a 98% Completion rating, or 96% etc..
- Ebay must require all Buyers in China, Taiwan and Hong Kong to have a Pay Pal Account with enough money in the account to make immediate payment upon the close of the item, PERIOD...Once a bid is placed, the funds are frozen in Pay Pal until the item closes or the bid is cancelled.
If they cannot do that at the Minimum they should require;
- New users in Asia should be limited to how much they can bid until they build some kind of history of Payment, then the limits gets lifted incrementally with additional purchases.
- If an Ebay buyer in China, Hong Kong or Taiwan defaults on paying for an item more than 2 times in a year, he/she should lose access to Ebay and the account is closed automatically.
- Non Payment should result in a loss of 100% Feedback, that's pretty obvious instantly.
As a seller who pays Ebay over $300 a week in fees, I would hope to be given a lot more for my money than unqualified buyers who are being knowingly misrepresented by the company I am paying to provide me a service.
Ebay needs to smarten up and stop acting like they are helpless on this and its time they realize how big this mess is and is growing rapidly..
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