I'm writing an article about a possible new trend in auctions--winning bidders shortchanging sellers by small amounts.
A reader has just informed us that she has been shortchanged for 3 out of her last 10 auctions, with buyers missing the full payment amount by 50 cents or so. The cost to retrieve this small amount of money is often higher than the amount in question.
Have any of you had this experience lately? Have the offending buyers paid with personal checks, money orders, or an online payment system like PayPal? Your comments are much appreciated.
posted on August 30, 2001 02:11:10 PM
I had one the other day in fact.
Item was $7.50, shipping was $5.00. He wanted insurance, so he just added an extra $1.00 to the total (without checking with me). So he paid me $13.50 with PayPal.
Insurance for this item would be $1.50 ($50 value minimum). So he was $0.50 short.
Since PayPal charges basically a $0.30 minimum and I'd already foot the bill for one payment, I told him I could send him back the $1.00 or he could send me $0.80 via PayPal to cover the difference. $0.50 + the $0.30 EXTRA this was going to cost me because of the need for two payments.
That night, he paid me the $0.80 with no problem. And PayPal took $0.32 of it, leaving me with $0.48 to cover the extra half-dollar.
posted on August 30, 2001 03:34:54 PM
I just had a buyer short me by 75 cents. I emailed her and mentioned it and then she got all huffy and said she would mail it. I said that was fine but I would remember it and if she bought from me again I would add it to the next invoice. Wasn't worth the hassle, but I will remember it and my auction management software will also remember it.
posted on August 30, 2001 04:00:05 PM
Had another insurance person a few minutes ago. ARGH!
"I'll send you $1.10 for insurance."
First off, I never once mention that I'm sending via the USPS -- so what makes them assume that I am? Secondly, there are other options BESIDES the USPS for insurance -- and I prefer to use these. Don't ASSUME buyers. If the TOS says to ask, then ASK!
posted on August 30, 2001 08:11:41 PM
Yes.. seems mainly from people who write checks and 'forget' the change.. 'Eight dollars and ----- 00/100' when they owe me $8.10 or even as high as $8.50.. OR I find when they bid odd amounts ($12.26 plus $2.00 s&h.. should be $14.26 but I only get $14.25)
That penny was important enough to win them the item, but not important enough to pay ME! hahaha
posted on August 31, 2001 05:04:49 AM
My "handling" charge is the rounding off to the nearest dollar. If its a matter of a few pennies over a dollar, I eat the difference, otherwise I round up to the nearest dollar so all my sales are an even amount. Once I started doing this I haven't had any problems being shortchanged from buyers. I don't think its malicious penny pinching on the behalf of most buyers, just a slip of the mind or the pen... after all, what does a few pennies buy you these days anyway?
I think the most frustrating thing about being short-changed on payment is that as a seller you have no idea what the bidders intentions were. Were the purposely trying to cheat you to save a few pennies? Or was it just a simple mistake? Personally, the idea that someone is trying to pull a fast one over me makes me madder then the small change itself. Usually, it just isn't worth the time to try to get the money back. However, if the money shorted is over $1.00, then I do contact the bidder and request that the funds be sent before I will ship the item. Another good point for your article would be to mention all the NICE bidders out there. There are many bidders who purposely include extra money in their payments. I'll often receive a note saying "keep the change" when a bidder has rounded payment up to the next dollar amount. It's nice bidders like these that help balance out some of the grief caused by those who short-change.
posted on August 31, 2001 11:13:57 AM
I've had people shortchange me in several ways. Like someone mentioned, forgetting the cents is a popular one...
I've also had buyers send me SASE's for shipment and included only the bid price - no $ for a toploader or any protection for the card - I send it anyway...
One of my regular buyers always sends a SASE but she also sends along her own plastic sleeves and toploaders - so I don't mind that.
And there are the overpayments - I get these quite a bit - people PAYPAL me and round up to the nearest $ and tell me to keep the change, international bidders doing the same thing ($ bills are easier to come by than change obviously). Overall I think they sort of balance out, and the VAST majority pay the correct amount.
posted on August 31, 2001 11:29:32 AM
I get shortchanged to the tune of $1 with great frequency. I even have a template in my software for "short payers". Inevitably it happens with late payers more than any other sort. I also have gotten some nasty replies to my "short pay" letter. I do ask for the merchant fees to be covered on these payments if they are done through Paypal or Billpoint. The real pain about these orders is they take up at least twice as much time as a normal one. Usually more time than that because all of the sudden you're dealing with two payments instead of one. Not to mention any nasty emails that accompany them.
posted on August 31, 2001 08:15:57 PM
Yes, several times. I always put in my description how its being shipped and other info, but they just don't read. When I send invoice, it is itemized and totaled and they still don't read...I nicely write back and tell them their funds were received and were short $xxxx how did they wish to handle this. The last company wrote me they did not realize and just ship it any way...yep, just ship it anyway. Yes, I shipped it and no I have not left feedback yet...
posted on August 31, 2001 09:12:22 PM
Have been shorted on payment many times. Largest percentage were personal checks, usually for one dollar even. I attribute these errors to bad math. For example, the buyer's item is 26.50 and shipping is 5.50.
They send 31.00.
posted on August 31, 2001 10:48:29 PM
When we first started selling we had a regular customer with very high feedback that would always shortchange us $1.00 - $3.00, with the amounts getting bigger each time. I always wanted to send her some stern emails, but my partner (who is way too mild mannered), always said to let it slide she would pay us eventually.
He would ship her shoes with a note reminding her that the amount she sent was short. She would always email back that she would "catch it" with her next purchase. This happened about 8 times
One day I came into our shipping room and my partner was howling with glee. He had wrapped another order for the shortchanger. He wrapped the box in beautiful paper and put a really nice card in it. I asked if it was her birthday or something. He said no, he just felt like sending her a pretty package.
I found out a few days later that he had shipped her only one shoe. The card said "I will send your other shoe with your next purchase".
The shortchanger actually emailed to say that, she thought it was a funny way to get her to pay up. She admitted that she was wrong, and that she just liked to push the limits. She also said that the first time was an accident and that after we did nothing she just kept doing it to see how long she could get away with it.
I really wonder about people that buy lots of shoes....
posted on September 1, 2001 05:19:29 AM
It happens to me on occasion. It costs me .80 to mail the items and I only charge $1.00 shipping. I can't tell you how many times folks seem to feel that its ok to just leave that $1.00 out.
Now, part of the confusion might be that I offer free shipping if a buyer uses BIN, but I think its pretty clear in my TOS that its only for BIN. I do use AW's WBN and its pretty clear that postage is $1.00 but who knows?
I sell a small item thats basically a fun/gag gift so most of the time I just ship it anyway and hope to get the extra dollar. Sometimes I wait to give feedback until I do or if I don't I'll put it in the feedback.
First off, I never once mention that I'm sending via the USPS -- so what makes them assume that I am? Secondly, there are other options BESIDES the USPS for insurance -- and I prefer to use these. Don't ASSUME buyers. If the TOS says to ask, then ASK!
First off, Peiklk, insurance is $1.10 for the first $50 via USPS. If you don't mention how you buy insurance in your TOS, expect people to assume it is $1.10. Don't expect your buyer to assume these things or ask you, as evidently, they're assuming wrong.
How DO you ship? Where DO you buy insurance for $1.50? That's pretty steep even by USPS standards. I sure hope your shipping company has a better track record than USPS for loss or damage for that amount of money.
I always thought .85 was too high and when it was .75, I thought that was high too. But $1.50? Outrageous. If you tell your bidders in your auction what insurance would be, they probably wouldn't bid or want it, so you'd be on the losing end.
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Edited to add: To answer the original question, yes I have been shortchanged, but each time, it was known beforehand. Bidders want to haggle over shipping and in some cases I'll compromise and eat part of the cost. I know I've lost, but I can also take that loss on my taxes No one has sent me less than I asked.
