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Tips for Reducing Seller Exposure to False NAD Claims
Posted by Griff on August 07, 2007 at 11:25 AM in General , Letters from Griff , Tips & Strategies , Trust & Safety Corner | Permalink
My esteemed eBay colleague Colin Rule's recent Chatter post has some excellent information on how eBay and PayPal handle FNAD Claims (Yes, I just coined yet another eBay/PayPal acronym. "FNAD" stands for "False Not As Described." However, as astute as my dear friend and compatriot's post might be, it begs the question, "How do I avoid the aggravation and loss from both FNAD and regular old NAD claims?" and if there is one thing I cannot resist, it's a begging question.
Over the last 11 years, I have collected a few simple tips and listing strategies that, although not absolutely guaranteed to provide 100% protection from false NAD claims, can nevertheless significantly reduce the chance of their occurring to you, an eBay seller. Some are really obvious (but I will mention them nonetheless). Others are probably less known.
The devil is deterred by the details
- Describe the item in minute detail in the text of your listing. Leave nothing out. If there is the smallest chip to that piece of china, mention it. Call it out. Take a photograph of the chip.
- Pack the item as securely as possible. I always err on the side of caution when I pack. We could spend an entire post on proper packing but there are many sources of this information on eBay so I will instead encourage you to seek them out later.
- Make insurance required for all your items. (Or at least, all your expensive or fragile items).
Highlighting the unique helps avoid FNAD claims
Many but not all, FNADs are filed for items that are not unique. For example, an electronic device or a china plate from a larger set or from a known china pattern. Some (very few) buyers with mischief on their minds might have an identical item in a "lesser" condition which they plan on switching out with your item. Your task is to find a unique aspect of your item, no matter how seemingly insignificant or small, and feature it prominently in your listing description.
For electronic devices, appliances, etc., include the serial number in both text as well as with a sharp close up photograph. For china or glass, look for at least one (more if possible) quirks or faults in the firing or glazing. Something that you can mention and can also display on the listing page in a clear, close-up photo. By detailing in text and photo, the serial number or something else unique about the item, you will discourage those unscrupulous buyers from buying your item and using it in a FNAD claim.
Use tamper-evident labels
For items which do not possess a unique mark or number, consider investing in tamper-proof or tamper-evident labels.
These are special design labels that you can apply to the surface of your item. You then display a photo of the label intact on the item and include a line item in your Terms of Service in the Return and Refund area along the lines of, "NOTE: This item is only returnable if the label shown is intact. The item will not be accepted for return or refund if the label has been removed or altered."
The tamper label strategy works as a deterrent, up to a point. But the more valuable the item, the more crafty the FNAD perp can become. For example, a buyer might purchase a few of the very same labels that you are using on your item and simply stick one on their damaged item. At a certain price point, the savvy seller might want to invest in special custom tamper proof labels. Some come with holograms and in unique designs and color combinations. And they can cost quite a bit more than the generic tamper proof labels but, as the cost rises for you, it also rises for the FNAD perp. Also, most of the online companies that sell these special custom tamper proof labels will only create and ship a re-order for a specific label to the person who originally owned them (using a user name and password). Other companies actually only produce one batch of custom labels and never print re-orders. Search on eBay and on line for "tamper proof security labels"
You can even create your own custom tamper-evident label at home using scotch tape and a good ball-point pen. Pull off a small length of scotch tape. On the sticky side, use the pen to write something in your own script or handwriting along the lines of "Void if removed or altered - your name here." Using one steady motion, carefully press the piece of tape to the surface of the item you are selling. When removed, it should be impossible to replace without losing some of the ink from either the tape or the body of the original item. (Note: this only works for vitreous or impervious surfaces like pottery, glass and most metals. It won't work so well on wood, most plastics or fabrics.)
Another point. If you're faced with a possible FNAD claim, take a moment to check the claimant's recent bidding and buying on eBay. I had a case a few years back where a buyer filed a claim of NAD for an expensive, brand name kitchen mixer stating the that the mixing bowl was cracked. The seller checked the buyer's past purchases on eBay (using Advanced Search and recent feedback left for that buyer) and discovered that the buyer had purchased an identical cracked mixing bowl on eBay a few weeks earlier.
Don't let NADs color your business outlook
Not all NAD claims are FNAD claims. Some are honest claims of NAD filed
primarily for cases where an item arrives damaged in transit. We'll
assume you have purchased insurance from the carrier used for shipping
the item. These types of NAD claims are much easier to avoid. Again,
photograph your item extensively. In fact, for items over a certain
amount (I suggest $200), consider taking a series of photographs as you
pack the item from beginning to end. Even better, take a short video of
the final stages of the packing -- show the item clearly displayed in
its "as described" condition as you place and seal it inside the
shipping box. Include these videos on your listing page as well to
inform honest buyers of the item condition upon packing and discourage
FNAD buyers from choosing your listing as a target.
A combination of due diligence and simple technology can reduce to near zero the risk of FNAD claims and significantly reduce the incident of legit NAD claims. In any event, it is always important to keep in mind that all business involves some risk and that, even when employing the best and most stringent prevention methods, there is always the possibility that a NAD claim will occur. If it happens, don't let it color the rest of your business outlook. Deal with it, learn from it and move on to the next transaction.
If you have other tips or tricks for avoiding FNAD and NAD claims, send them to me and I will post them here.
Regards,
Griff
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