New scam being perpetrated on eBay?

[SOEKS1]

I don't know if this is new or not however it appears that following PayPal's decision not to refund transaction fees when one refunds the buyer, certain less than honest individuals have discovered a new way to scam eBay merchants.

The way it works is to place an order for a very expensive item, then send a message to the seller claiming the supplied delivery name and address were incorrect and asking that the order be sent to a completely different person/address. PayPal warns you that your are only eligible for seller protection provided you send to the original address as shown on the order. This leaves you with a choice:
1. tell the buyer you are unable to send to a different address and that you will cancel the sale and refund him so he can place a new order. You now get hit for a sizeable transaction fee! Or,
2. run the risk that the buyer can be trusted and send the product to the new address. That's what he is banking on.

The rest you can guess. Whichever option you choose, you are in a lose/lose situation.

If anyone has any ideas of how to turn this situation around, I am all ears because I have just been hit.

[sharpiemarker]

@SOEKS1 

Cancel order as problem with buyer address on eBay. Refund the money, deduct the fee if possible. Block buyer. Sell to someone else. I do know know in which order it has to be done but that's what I'd try to do. Maybe issue a refund through PayPal first of everything but the PayPal fee and then cancel order as problem with buyer address. ebay sellers have to put a hard line against buyers who don't put the right address, can't be weak on it. I do not put up with it. If one is buying, don't be a idiot and don't make sure the address is correct. No excuse really.

[SOEKS1]

Thanks for the suggestion but the order was already sent and received. I fell for the trap of not wanting to lose on PayPal's transaction fee. And, if you deduct PayPal's fee, not only do you expose yourself to negative feedback but if the buyer was honest you just earned yourself a bad reputation. This really is a catch 22 situation or as I said previously, lose/lose.

[sharpiemarker]

@SOEKS1 

You will have to ask on the eBay boards whether you are susceptible to negative feedback on eBay if canceling as problem with buyer address. That's bogus if sellers are. I know you do not get a defect for canceling as problem with buyer address. You 'll have to explain to the customers that you are required to ship to PayPal address. Or, maybe eBay is no longer the platform to sell on.

[SOEKS1]

You seem to have misunderstood me. The negative feedback would not be in respect of the cancellation. It would be due to having retained PayPal's transaction fee.

PayPal may think their new policy is a great money maker for them but as you can see, it has opened up an avenue for fraud.