Authored by 3 community members

What is a Non-Paying Bidder (NPB)?

A non-paying bidder is an individual who bids on an auction, wins as the highest-bidder, and then fails to pay for the item.  The seller is now left with not only an unpaid item, but they must also go through the redundant step of additionally contacting the buyer in order to receive payment. There are steps that sellers can take in order to avoid this type of problem.

Preventive Measures:

1. Many times those new to eBay become non-paying bidders, so require that all bidders under a certain feedback level email you prior to bidding.  You can also restrict bids to those with a certain feedback level, and you may want to consider restricting bidding privileges to those with at least one feedback—but certainly deny bidding privileges to those with less than zero feedback.  This way you can ensure that they are serious about buying the item and you can answer any questions they may have about the process.

2. If possible, sell via the "Immediate Payment" option.  This way those who choose to purchase are required to enter their payment information immediately into the system.  If they decline to do this, the item remains listed and the transaction with that buyer cancelled.

3. A third-party service, ReliaBid, can also be used to avoid the problem with non-paying bidders all together.  They offer a seal that acts as a deterrent to ensure that those who bid on your auctions are committed buyers.  If you still end up with a non-paying bidder, ReliaBid gives you further protection through access to debt collection services. 

4. When writing a listing, be as descriptive as possible.  Include clear pictures and an accurate representation of the item.  The more details you can provide, the better.  

5. Include in your listing clearly stated policies.  Be sure to include all information about returns, payment options, condition of item and shipping options.  It's essential to highlight what payment options will be accepted, especially if only certain payment options are available.  With shipping information it is essential to not bury or hide the cost of shipping, especially if it is high.  If a bidder wins an auction but does not notice that the shipping cost is overpriced, they will think they were scammed and be more inclined to show resistance regarding payment.  Be sure to include any information about restrictions to where you are willing to ship (i.e. international, military FPO APO addresses and P.O. Boxes).

6. The more contact information provided, the better.  eBay messaging, Email addresses, phone / fax numbers, even a street address (which will also increase your credibility with buyers).  Be sure not to put a hyperlink that leads off of eBay's site though, for this is against listing policy and may result in your listings being removed.

7. Send an invoice immediately after the auction closes.  Payment options, policies, links to websites where they can pay and your contact information are all important to include in these invoices.  Make it as simple as possible for the winning bidder to pay for the item.

8. Wait until after the close of a transaction to leave feedback, and do not accept anyone holding your feedback hostage! 
   

Sellers' Recourse for Non-Paying Bidders / Unpaid Items:

1. If after 7 days the buyer still hasn't paid, you can initiate an Unpaid Item Dispute (UID) with eBay.  What this means is that you can recoup your final value fee credit, but generally your listing fees are gone.  After three unpaid item strikes, a non-paying bidder is kicked off of eBay (but they are not stopped from simply registering for a new account).

2. Send a "last notice" email to the bidder telling them that if they do not pay you will initiate an Unpaid Item Dispute against them and (if you're a ReliaBid member) that if they do not pay they may be subject to credit reporting.  By framing the messages as a "last chance or these are the consequences" email, you will receive a better response from buyers—people respond when their credit is on the line!!

3. Request all of the buyer's email from the eBay system.  Include this information in your last notice email so that they realize you have the information and means of both locating and holding them to their transaction (of course you can only really hold them to this if you're a ReliaBid member).

4. If after 10 days the item is still unpaid, and you're a ReliaBid member, you can choose to initiate a collection against the non-paying bidder.  This way you can receive payment on the entire cost of the item, including shipping, or are given a restocking fee as compensation for the time, frustration and costs you incurred holding the item. 

By following these simple steps you should be able to better avoid and handle non-paying bidders.  It is best to use these tips all in conjunction with each other in order to create the fortification for your business.  

Non-paying bidders are an issue because they damage the sense of community and trust inherent on eBay.  Also, they are effectively committed bidder fraud and negatively impacting the businesses that they've entered into transactions with and then refuse to complete.  Those sellers who are plagued with this problem of non-paying bidders must spend their time and resources chasing after non-paying bidders as opposed to focusing on sustaining and growing their businesses.