New to the community? Welcome! Please read our Community Rules and Guidelines
We have a serious problem with fraudulent disputes that customers make when they do not receive products within 2 weeks. Since we ship from Asia to Europe and America, shipments typically take a longer time. We provide tracking numbers to customers, so they can follow the transit of their orders. We also point out that our delivery guarantee is for a certain number of weeks both on our front page, shipping terms and the order confirmations.
However, if a customer files a complaint, it requires quite a lot of work. We need capture screenshots of the shipment in transit, explain, provide tracking number, and even shipment slips. When the product is delivered, we take screenshots of the confirmed delivery.
Then we have to wait for the dispute department at PayPal to go through the material. Regularly, perhaps even most of the time, the decisions to refund the customer are completely random and without logic. Thus, the expensive products are delivered for free and we sustain a serious loss. (At other times we get the decision that a customer complaint was rejected, but we later find out that our guaranteed shipping time was exceeded or their parcel was lost. In which case, we still do cover the cost for the customer and refund him or her fully, despite the decision by PayPal to discard the customer complaint.)
The serious problem are the repetitive willful and illogical decisions by PayPal dispute department. We have now even had to cease all payments by PayPal because of the erroneous decisions by PayPal personnel, which are rarely corrected, and this is getting way too expensive. It seems that they are unable to read and/or comprehend the information provided. 90%-95% of the time the PayPal personnel make the decision while the product is still in transit and after we have provided the tracking number, a screenshot of where the product is right now in the transit, and explained it is still in transit, and provided an estimate of the likely delivery date.*) Of course, as the customer paying the salaries to PayPal personnel, the whole issue is completely outrageous. We would never dream of treating our customers the same way as PayPal treats us, their paying customers.
We would like to know how to best escalate these to a higher instance, within PayPal, and/or to the EU court in Luxembourg, if there is to other way. If other companies have the same issue, perhaps we can do this together.
*) Funnily, we do not have nearly the same magnitude of issues with any of the PayPal competitors.
One of the problems is when the products are fairly expensive and margins 10%, an erroneous decision for 200 €, means we have to sell for 2000 € just to cover the loss.