Item Not Received (INR)-Buyer Fraud-Local Australia Market

Anyone else got some good ideas or help. There is a growing major problem (in my business anyway) with Item not received (INR) fraud in Local Australian Mail. I do not expect that ebay will take any action over this, as unfortunately, due to poor performance of bad sellers in the past by scamming and not sending items, this will be have to be past over as a cost of doing business on ebay,but this is now a cost to my business that is no longer sustainable. Next time someone claims they never receive an item from you, dont be too sure they didn't. read on. Understand that I run an ethical business, with 5500 feedbacks at 99.5% TRS. Every item that is paid, is sent. My Letter’s Addresses are printed with 20point Arial font, and marked with a printed return an address. Ensuring accurate delivery. After consultation with Australia Post advising me that in general 1, and at the outside, 2 letters are lost per 1000. I am currently at 1 in 15 items are now being claimed as not received. 1 in a 100 would be considered a poor target and unacceptable. But 1 in 15 is just disgusting Standard procedure for Australia Post is to return items that are not delivered, I have not received even 1 item back , that is a 0% return rate. Australia Post advised me. This is most certainly fraud. This means that even allowing for a few extra missing items, the vast majority of people claiming are lying. These grubs, buys one of my items, goes this is alright, its only $6, they won’t mind. I’ll just say I never received it, and I’ll get a free spare one. These people never/ won’t open a claim, just send a message, and never leave negative feedback, as this would bring unwanted attention to themselves. Note: this is not the majority of consumers, but unfortunately, this minority is now growing rapidly, 1 in 15 is not a good statistic.. The problem is these people probably do not know the severity of mail fraud or the damage to a good standing micro business, all it takes is for the local postman to say they remember delivering the item(most of my items are distinct in appearance) and that person then can be charged with mail fraud, which is a federal offence. No international travel ever, over a $6 item. But that is their choice and risk. But unfortunately for me it has made a once very good business. Looking at closing the doors. At today’s figures, I have to sell 98 items to recover the losses to date, I sell maybe 200 items per month, This is no longer a sustainable business model , so I have 2 choices. 1/Close shop, cut losses and another good ebay store is gone, I wouldn’t be the first or the last. 2/ introduce free registered post shipping (need to keep this otherwise lose benefits/ search standings ) remembering that most of my items are between $2 and $6 this will increase prices a further $5 (registered label plus fees for additional cost). I already offer express and registered post shipping as an option and maybe 1% use the registered post option. This will in effect be pricing my products out of competitive standings. Estimate selling approx.. 10% of what I do now. Close shop, not enough turn over. The only way to combat this problem, is firstly block the person. Then refund the money, I was advised that resending an item is “enabling the criminal” and exactly what they want, in a couple of rare cases I have had people claim they never received the item twice!!!!, double the free stuff and a refund. And with them blocked they can’t buy from you again, which you really don’t want untrustworthy people buying from your store? Any other options?
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Re: Item Not Received (INR)-Buyer Fraud-Local Australia Market

Check your Private Messages...

Message 2 of 38
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Re: Item Not Received (INR)-Buyer Fraud-Local Australia Market

Save the paragraph.

 

Almost impossible to read.

 

Maybe wait for the buyers to open cases, rather than reflexively refunding?

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Re: Item Not Received (INR)-Buyer Fraud-Local Australia Market

sorry for the format, it was formatted when i posted,  but it only let me use html.

Message 4 of 38
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Re: Item Not Received (INR)-Buyer Fraud-Local Australia Market

Hi Dave, i dont refund immediately. for security reasons. cant explain in open forum


Message 5 of 38
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Re: Item Not Received (INR)-Buyer Fraud-Local Australia Market

I don't know what postage costs for your largest items but using the large prepaid reg'd envelopes is a lot cheaper than using the stickers.  I think they're about $6.50 each if you buy in bulk, compared to $5 + the sticker.

 

Can you add 50c to $1 to the price of each item to cover those that you have to refund?  That may slow your sales but it's probably the least damaging way to do it.

 

 

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Re: Item Not Received (INR)-Buyer Fraud-Local Australia Market

hi,

yes, looked at the prepaid envelop, worked out that 50 roll of registered labels is $160, $3.20 a piece, plus 1 or 2 dollars to post. works out cheaper than prepaid. if i put the price up it still doesnt fix a growing problem of fraud. but might weed out some rubbish. waiting to here back from ebay, i sent them a copy. but i dont think they'll do much. its a buyers market, id be curious to know other stores statistics, im sure ebay would have some interesting data on fraud, we would never see of course, but when is enough enough

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Re: Item Not Received (INR)-Buyer Fraud-Local Australia Market

From the experimentation I decribed to you in the PM we think about 1 in 1,000 is a pretty accurate real loss rate for large letters in AU.

Anything significantly above that rate and I believe scammers are at work in claiming INR.

 

Also we have never had any AU Post item returned to us. So what happens to the ones that are said to be lost?

Must be a pretty big store room somewhere that is the dead letter office.

Would love to see that for myself.

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Re: Item Not Received (INR)-Buyer Fraud-Local Australia Market

I'd say the lost items are items that are placed into a wrong letterbox.

I received one the other day, express post satchel for a house across the road and down the street. I popped it into the correct letterbox, but I guess not everyone would do the same.
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Re: Item Not Received (INR)-Buyer Fraud-Local Australia Market

Hi Clarry, agreed, I have a had a couple of returned items going back last year. When I spoke to the mail centre post master they said all lost or misdirected mail, is returned to sender, in which case all my envelops are return addressed. So no returns indicated foul play. Wait to hear back from eBay 

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