eBay is introducing a new resolution process. The following is eBay's FAQ section about how the new process works.

What is the new eBay Resolution process?
We are introducing a new dispute resolution process for when buyers claim their item was not received or the item they received was not as described in the listing. This new on-eBay resolution process is intended to accomplish several objectives:

• Help buyers and sellers resolve disputes in fewer steps, and provide buyers with a more familiar eCommerce resolution experience
• Enable eBay to step into disputed transactions. In certain cases, eBay will refund the buyer and not find the seller at fault
• Retain substantially the same definitions and policies that PayPal uses to resolve item not received and item not as described disputes
• Make sure that overall resolution outcomes in the new process aren't weighted any differently toward buyers or sellers than outcomes in the old process

Currently, buyers with an issue contact the seller and, if there is no resolution, start the dispute process online via PayPal's resolution center. With the new system, when a buyer begins the dispute process and indicates they did not receive their item or the item received was different than described, they may be given the option to call eBay - regardless of the payment method used in the disputed transaction.

The new eBay system will be launched gradually over the next several months. We expect to launch item not received resolution first, and will gradually launch item not as described resolution second. We anticipate that the transition will be complete before the holiday selling season.

Once complete, the new on-eBay resolution process, backed by eBay customer support, will serve as the primary entry point for buyers who are unable to resolve disputes with eBay sellers.

The new eBay resolution process applies to items listed on eBay.com only, not eBay sites outside the United States. Buyers outside the U.S. purchasing items on eBay.com will be able to submit a web-form instead of calling eBay.

How does this new process benefit sellers?
The new system is designed to have fewer communication steps between buyer and seller, and require a shorter time to dispute resolution. Moving the process from PayPal to eBay also will allow us to better monitor and prevent buyer fraud or abuse and adapt quickly to seller needs.

Will all buyers be given the option to contact eBay for dispute resolution?
Eventually, yes. However, we will introduce the new process slowly over the next few months so we can work closely with buyers and sellers to ensure it's working for everyone. We expect to offer the new process to all buyers and sellers by the holiday selling season of 2009.

How does this new eBay Resolution process work?
If a buyer has been unsuccessful in working directly with a seller, the buyer can contact eBay via a toll-free number or via web-form. An experienced Customer Support representative reviews the case, examining transaction details such as item description, buyer and seller track record, seller location, payment, and shipping details. If the buyer's claim warrants further investigation, eBay will contact the seller.

The seller will have five business days to do one or more of the following:

• In cases where the buyer claims the item was not received, provide proof of delivery (using the same methods required by PayPal currently)
• In cases where the buyer claims the item was not as described, provide proof that it was (using the same methods required by PayPal currently)
• Or, refund the buyer

If five business days elapse without a response or a refund to the buyer, eBay will refund the cost of the item and shipping to the buyer and, when appropriate, seek to recover transaction funds from the seller.

For transactions resulting in a buyer refund, sellers can go to the mutual transaction withdrawal option of the Unpaid Item process to request a refund of their Final Value Fee, the same way the current process works. However, we expect to revise the fee-refund process later in 2009, so that in certain instances sellers will get a refund of their selling fees automatically.

We understand that there will be times where both buyer and seller may be right. In those cases eBay may absorb the cost to reimburse the buyer without any impact on the seller.

Are buyers required to contact the seller before opening a dispute with eBay?
In most instances, buyers will be strongly encouraged to contact the seller first, but it will not be required. In some cases, eBay will contact the seller on the buyer's behalf.

When can buyers contact eBay about a transaction?
eBay Customer Support will be available for buyers at any time to answer transaction questions. In many cases, this will save time for sellers, because our Customer Support agents can answer basic questions that otherwise would have gone to the seller.

eBay will not contact the seller unless the buyer has received the item and believes it's not as described, or the buyer hasn't received the item after a reasonable amount of time. In cases where shipping time is clearly disclosed in the listing, eBay will encourage the buyer to contact the seller first and not seek resolution until about three days after the specified delivery date.

Is there a time limit for a buyer to place a claim?
Generally, buyers will have 45 days from payment to file a claim - the same as with the current PayPal dispute resolution system. Exceptions may be made based on factors such as buyer and seller track record, listing information, item location, and shipping method

If a buyer doesn't want a refund, just a replacement, how is that handled?
eBay would encourage the buyer to contact the seller to request a replacement. If the buyer is unable to resolve the issue, they will be encouraged to contact eBay again. They will have 45 days from payment to file a claim.

What if the buyer never paid for the item? Can they still call eBay with a dispute?
Buyers are welcome to contact eBay for any reason. However, eBay will not permit claims when the buyer has not paid the seller.

Would eBay ever settle a case with a buyer without first contacting the seller?
eBay may decide to refund the buyer before contacting the seller, but in all cases the seller will have five business days to respond to a claim. If a seller successfully settles the claim and the buyer had already been refunded, eBay will absorb the cost of the refund.

What documentation will eBay accept from sellers when buyers claim their item was not received? As with PayPal's current process, proof of delivery is acceptable documentation. You will need online tracking information from a shipping company that:

1. Shows the status as delivered.
   2 Shows the date of delivery.
   3 Includes the recipient's address, showing at least the city/state or ZIP code (or their equivalent).
   4 For items priced $250 USD (or local currency equivalent) or more, includes proof of the recipient's signature to confirm delivery.

What if the item is still in transit when the buyer contacts us?
If the item is still in transit, eBay will consider the delivery estimate in the listing. If tracking indicates that the item should arrive within the delivery estimate plus a reasonable amount of additional time (3 days in most cases), the buyer will be told to wait and the seller will not be held accountable. If tracking indicates that the item will arrive outside this timeframe or is lost in transit, the seller may be held accountable. The same proof of delivery criteria apply to cross-border transactions.

What if the item is stuck in customs because the buyer won't pay the import fees?
Cross-border trade disputes will be evaluated on a case by case basis using all of the available transaction information. We will not accept disputes filed by cross-border buyers where the sole complaint is high customs duties. Cross-border sellers can also facilitate reviews of their cases by specifying in their item description that cross-border buyers are responsible for any customs, duties, etc. imposed by the buyer's home country.

Will buyer claims that the item they received was significantly not as described also be handled under the new system?
We will begin to move item not received claims from PayPal to the new eBay process first, followed by claims that items received were significantly not as described. We expect to have claims of both types handled by the new process before the 2009 holiday season.

If the buyer claims the item they received was not as described, but the item is clearly described correctly in the listing, is the seller protected against the claim?
We expect that the new eBay resolution process will manage item not as described disputes in substantially the same way as they are handled under the current PayPal process. Examples of situations where PayPal considers items not as described and the seller is held accountable:

• Buyer received a completely different item. Example: Purchased a book and received a DVD or an empty box.
• The condition of the item was misrepresented. Example: The listing said "new" and the item was used.
• The item was advertised as authentic but is not authentic.
• The item is missing major parts or features which were not disclosed in the listing.
• Three items were purchased from a seller but only two were received.
• The item was damaged during shipment.

Examples of situations where items are NOT considered "significantly not as described" and the seller is not held accountable:

• The defect in the item was correctly described by the seller.
• The item was properly described but the buyer didn't want it after they received it.
• The item was properly described but did not meet buyers' expectations.
• The item has minor scratches and was listed as used condition.

Additionally, in some situations, even though the item was described properly by the seller, eBay may decide to refund the buyer at eBay's own expense.

What happens if eBay determines the buyer's claim is warranted? Will eBay make sure the item is returned to the seller before a refund is given? Who pays for return shipping?
We expect that we will follow PayPal's current practices. PayPal may require buyers to return items to sellers with proof of delivery, with the buyer paying return shipping expenses.

Will a seller's excellent buyer satisfaction rating be taken into account during this process?
Yes. In addition to transaction and listing details, we will also consider whether the claim is an isolated complaint for an otherwise high-performing seller.

What happens if a seller successfully appeals a dispute?
If a seller's appeal is successful, the case will be closed. In some cases, eBay may still refund the buyer at eBay's own expense.

Will the buyer be able to leave negative feedback on a transaction if a seller successfully appeals a dispute?
There is no product linkage between eBay's resolution process and the feedback system. As is the case today, buyers will be free to leave feedback regardless of dispute resolution outcomes and all the current reasons for feedback removal will still apply.

How will this new process affect my feedback and Detailed Seller Ratings (DSRs)?
The Feedback system, including Detailed Seller Ratings, will not change as a result of this process. In testing this new process, we have seen no material difference in feedback or DSR scores.

If a seller successfully appeals a dispute will Buyer Satisfaction Ratings be affected?
When eBay decides a seller is not at fault for a dispute, the seller's Buyer Satisfaction Rating will not be impacted.

How does eBay determine if a seller is at fault and what are the consequences?
We expect to evaluate whether sellers are at fault using the following criteria.

• For item not received claims: A buyer claims they did not receive the item, and the seller does not provide delivery confirmation. This is similar to how PayPal reviews claims currently.
• For item not as described claims: We expect to follow current PayPal practice in evaluating these claims. More details on how PayPal manages claims are available in the protection for buyers and protection for sellers sections of the PayPal User Agreement.
• We will publish full details of eBay's evaluation criteria later this year, as the system goes live.

Consequences from eBay to sellers may include:

• Request from eBay to refund the buyer.
• If the seller does not refund the buyer or successfully appeal, recovery of transaction funds.
• Negative or neutral feedback at the buyer's discretion.

Sellers with repeated claims relative to total sales may be at risk of violating eBay's Seller Performance policy. Consequences of violating this policy include:

• Reduced or eliminated PowerSeller fee discounts Loss of PowerSeller status Decreased visibility in search results Requirements regarding payment options and potential holds on payments made through PayPal Account suspension

What should sellers do to make this new process run smoothly?
Follow these best practices:

• Always ship with a carrier that provides shipping and/or delivery confirmation. If you are not using PayPal or eBay to print labels, upload item tracking information into My eBay. When an item has shipped, mark it as shipped in My eBay. Write detailed listing descriptions with accurate item condition such as used, new, or refurbished. Clearly describe any flaws. Include multiple pictures of an item in your listings, especially if there are flaws.

Can sellers contact buyers after the buyer has received a refund to learn more about what happened and how they can improve?
Sellers are allowed to contact buyers to learn and provide good customer service. Additionally, sellers should monitor their feedback, Detailed Seller Ratings, and standing through the Seller Dashboard.

Please note that buyer harassment by sellers will not be tolerated and eBay takes harassment reports seriously.

What is eBay doing to protect sellers from buyer abuse?
eBay has an extensive risk management infrastructure and removes fraudulent buyers from the site. We also monitor for abuse of return policies�for example, too many claims in a period of time. Buyers with more than normal, minimal return rates would be prevented from using the system. One advantage of having eBay closely engaged in the resolution process is that we can monitor buyer return activity more closely and step in quickly to prevent abuse.

What can sellers do to protect themselves from buyer abuse?
Sellers should report buyers who are abusive, either by contacting eBay Customer Support or by following eBay's process for reporting inappropriate behavior.

What are eBay's plans for improving the unpaid item dispute process?
We are planning two significant changes to the unpaid item dispute process. First, for PayPal only items, eBay will be able to auto-file and auto-credit sellers. Second, for Fixed Price items, we will begin removing negative and neutral feedback ratings left after a seller files an unpaid item dispute. We expect to launch both these changes in 2009.

Incorrect contact information is a driver of disputes. What does eBay plan to do about buyers with incorrect contact information in the eBay system?
We recognize that this has been a longstanding issue for sellers. A buyer's email address or other contact information may be invalid when a seller attempts to reach out to resolve an issue. Beginning in April 2009, if we detect that a member has an invalid email address, we will stop the member at sign-in and require an updated address.

What are you doing to help buyers find order tracking information?
Beginning in June 2009, if a buyer has purchased an item with trackable shipping - and the seller has provided the tracking to eBay�we will surface that tracking information in key buyer flows such as an email to buyers and the "items won" and "view order details" pages of My eBay. This improvement is intended to reduce the amount of questions sellers receive from buyers about tracking information.

Also, sellers can upload tracking information to eBay from "Items I've Sold" in My eBay or via the API. Tracking information will upload automatically if a seller uses the new label printing solution on eBay or uses PayPal Shipping on PayPal.com.

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