Reselling protection?

[LorenzoSk]

Hello everyone. I have a question about seller protection (I don't know if this is the correct section, if it is not I hope a mod will be able to move it) and I can't figure out the answer. I hope you can help me. So, let's say I list an item on ebay (or anywhere else), someone buys it and pays me through Paypal. The moment I sell it I don't have the item available. Instead of canceling the auction and refunding the buyer, I decide to make a deal with another seller (using ebay or another channel) who has the same item (or at least says so). I pay said seller using Paypal, and to spend less money and time I have the seller delivery the item directly to the buyer. What happens if the buyer, unfortunately, receives a different or broken item? Of course that person is going to get refunded by me, if so they wish, and I'm going to get the item shipped to me. Then, what happens if I open a dispute for my payment to the person that originally had the item? Will I be able to win it or not? Is there any concern about the fact that the address I have my Paypal registered on, which is the same as the one I would use to send the item back to said person, is different from the one I asked them to ship to? All of this assuming I have undeniable proof that the item is broken, such as photos of the item, original photos advertised by the seller and/or some form of communication log where they clearly say the item is not broken (like screenshots of our private chat or maybe a message incorporated in the payment they have to agree upon in order to confirm the transaction, if that is even possibile). I'm also assuming that both payments are done using "goods and services", as it should be. Thank you for your attention. Lorenzo

[sharpiemarker · Accepted solution]

@LorenzoSk 

Please do not do business like this. Invest in inventory. There's already too many scammers out here on the net. Don't add to it. If you want to do business, do it for real so you do not have to worry about disputes. They are not fun.

#1, its not allowed (see below). Its a form of drop shipping that is maybe slightly worse than working with a drop shipper and the seller shouldn't be doing your job for you shipping to your customer. And what if the seller is a sketchy one selling stuff that is not as described because you do not see the merchandise? The buyer gets it and file a dispute on your account? PayPal do not like that. Plus, what if PayPal hold each of your payments for up to 21 days and you need the money to order the item? You will fail miserably. No way to run a business. Too much hassle.

Sellers are not protected from Significantly Not As Described claims so you would have to accept return. For each problem you have with a customer, you will have to deal with 2 disputes. One with buyer and one with your supplier. What happens if the buyer file a chargeback and do not return the item and you file dispute with seller and you have to return the item? What you are going to return? You will lose the dispute and get a chargeback fee on top of the amount disputed.

https://www.paypal.com/it/webapps/mpp/ua/acceptableuse-full?locale.x=en_IT

Prohibited Activities

You may not use the PayPal service for activities that:

1. violate any law, statute, ordinance or regulation.

2. relate to transactions involving (a) narcotics, steroids, certain controlled substances or other products that present a risk to consumer safety, (b) drug paraphernalia, (c) cigarettes, (d) items that encourage, promote, facilitate or instruct others to engage in illegal activity, (e) stolen goods including digital and virtual goods, (f) the promotion of hate, violence, racial or other forms of intolerance that is discriminatory or the financial exploitation of a crime, (g) items that are considered obscene, (h) items that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the laws of any jurisdiction, (i) certain sexually oriented materials or services, (j) ammunition, firearms, or certain firearm parts or accessories, or (k) certain weapons or knives regulated under applicable law.

3. relate to transactions that (a) show the personal information of third parties in violation of applicable law, (b) support pyramid or ponzi schemes, matrix programs, other "get rich quick" schemes or certain multi-level marketing programs, (c) are associated with purchases of annuities or lottery contracts, lay-away systems, off-shore banking or transactions to finance or refinance debts funded by a credit card, (d) are for the sale of certain items before the seller has control or possession of the item, (e) are by payment processors to collect payments on behalf of merchants, (f) are associated with the sale of traveler's checks or money orders, (g) involve currency exchanges or check cashing businesses, (h) involve certain credit repair, debt settlement services, credit transactions or insurance activities, or (i) involve offering or receiving payments for the purpose of bribery or corruption.

4. involve the sales of products or services identified by government agencies to have a high likelihood of being fraudulent.

I have it in Italian language too:

https://www.paypal.com/it/webapps/mpp/ua/acceptableuse-full?locale.x=it_IT

It can get your account shut down.