Reducing Unpaid Items by Reducing the Element of Surprise
by Dave Steer
eBay's Senior Manager of Trust & Safety Marketing

Ok, I'm not proud to admit this story, but in the interest of education, I'm sharing this little personal episode. Considering what I do for a day job, I should have known better...

I recently spotted a 'must have' collectible which led me to bid feverishly (and re-bid... three times!) so that I would walk away the winner. When it came time to pay, I was caught by a few surprises tucked away within the item listing -- the seller didn't accept PayPal, the shipping costs were not clear, and the payment process involved sending either cash in an envelope or using a wire transfer service.

I paid for the item, since it was, after all, my responsibility as the buyer to do so. But the half-hour payment process -- I nervously paid via wire transfer -- and other concerns could have resulted in an unfortunate unpaid item for the seller had I not been so conscientious.

Paying for items is not only eBay policy, it is common sense. Like me, the vast majority of buyers bid because they want the item.

There may be several reasons why a buyer does not pay for their item, however. Poor communication between buyers and sellers, a lack of understanding about or comfort in the purchase process, and the increased adoption of spam filters all stand in the way of a seller receiving payment for their purchase.

Regardless of the excuse non-paying buyers might offer, however, sellers often feel the same kind of frustration when a buyer does not pay for an item as a teacher feels when a student claims that their homework was mysteriously eaten by the family dog.

So if paying for items is common sense, are there steps that a seller can take to better ensure that buyers follow through with their end of the bargain? Are there ways to remove or reduce the element of surprise involved so that buyers are not caught off guard?

Here are a few suggestions that sellers may consider adopting that will increase a buyer's trust in the payment process and make it easy for them to give you their money:

• Tip #1: Offer eBay Checkout
  Sometimes buyers get nervous when they must pay for their item in an environment markedly different than the one in which they placed their bid. Another deterrent is when they have to jump through multiple hoops to pay for their item. eBay's checkout payment process gives buyers a streamlined way to complete their purchase in an environment that is familiar.

• Tip #2: Offer PayPal
  Making it easy to pay is the most important takeaway here. Three out of four buyers tell us they prefer to pay with PayPal for the convenience and safety it offers, and most eBay members already have PayPal accounts.

• Tip #3: Include Shipping Fee Information in the Shipping Details Section
  Buyers don't always think of the shipping costs before deciding to purchase an item. You can bet, though, that if they are surprised by the amount of shipping after they've won, some will think twice before paying for the item.

  While it's wrong for buyers to refuse to pay because they didn't notice the shipping in the description or they forgot to ask the seller what the costs would be, it's not productive or pleasant for either party to have to deal with surprises at the end.

  Be a savvy seller - include your shipping costs in the Shipping and Payment Details section for best visibility. You'll eliminate all kinds of avoidable delays and disappointments this way.

• Tip #4: List with Immediate Payment on Buy it Now Items
  Immediate Payment is a sure fire way to kill the possibility of an unpaid item. Simply put, with the Immediate Payment feature the listing remains available for other buyers until the seller is actually paid via PayPal.

So these are some simple yet helpful tips for the savvy seller to consider. While it is eBay's policy that buyers are required to pay for the items that they commit to purchase, it is clear that removing the element of surprise and making it easy for buyers to pay will reduce unpaid item.

Next Month: The trials and tribulations of paying via instant cash transfer services.