15 Ways to Protect Yourself Selling Online
Updated 11/07/21
As much as I love selling with its many benefits, there are downsides to it too. You may have heard of sellers being cheated or even been someone who has been taken advantage of by a buyer before. So today I want to share several ways to protect yourself when selling online.
I sell primarily on Poshmark, eBay, Mercari, and Facebook Marketplace, so this post covers protecting yourself on these marketplaces, but the ideas can be applied to other platforms too.
Disclosure: This post contains affiliate links. This means that I may receive compensation when you click on a product link or purchase an item linked on this site. Click here for details.
***If you don’t have a Poshmark account, you can receive a free $10 bonus when you sign up with my code SFGIRL2015. Amount may vary by promotion.***
***On Mercari, you can get $10 when you sign up with the code JENMHM.
Background
A few years ago I attended Poshmark’s PoshNation tour in San Francisco, where I met several other women who buy and sell on Poshmark.
Of the four women I spoke to in depth at the event, two of them asked me about how to deal with scammers and receiving items not as described.
I’ve been fortunate to have very few issues of my own as a buyer or seller. I think most people who shop and sell online are honest and fair.
Still, if two of four new buyers and sellers were upset about this, it’s a legitimate concern and worth exploring how to protect ourselves as sellers. (Buyers may find the tips helpful too.)
Examples of Online Scams
Here are some examples of scams that people pull online. I’m sure there are many more out there. These are the ones I’ve heard or read about most frequently, and they seem to be getting more sophisticated every day.
Someone buys an item (often new) and uses it, then returns it saying the item was not as described. Sometimes the buyer returns the item used or damaged or returns a completely different item. You’re out of money and the item.
Someone asks you when you send your items out or if you have already sent it. Once you’ve shipped it, the person cancels the order so that he/she can receive both a refund and the item.
You trade an item with another Poshmark user (aka Posher) for $3. The $3 covers Poshmark’s commission and generates a shipping label. You send your item and the other user either sends an item not as described or doesn’t send an item at all.
A buyer states that an item was not received hoping to receive the item and a refund. On Poshmark, if an item is marked as delivered by USPS, the company will eventually release the funds to you. The seller doesn’t lose out here on Poshmark because tracking shows the item is delivered, but I have heard of sellers losing their item and money on other platforms.
Once an item is sold, you get an email telling you to send it to a different address. On Poshmark, it’s easy to rectify this by having the buyer contact Poshmark. On eBay, the seller has the ability to edit the shipping label, so sends the address to a new (wrong) address into the hands of a scammer.
Ways for Sellers to Protect Themselves
1) Read a site’s rules & guidelines
One of the best things to do when first on a site is to read the rules or guidelines. It’s easy to overlook them because you just want to get on with selling, but it really does help to know them.
Once you familiarize yourself with a site’s rules, you’ll know what you can and can’t list to be in compliance. This will work in your favor if there’s ever a dispute. You’ll soon find out who reads the rules and follows them too.
Knowing the rules will help you build a strong case if you find yourself involved in a scam. For example, on Poshmark, it’s smart to have lots of pictures of items and a detailed written description of what you’re selling.
Any communication between a buyer and seller should be kept on the app. Poshmark comments cannot be deleted. Don’t delete any messages on eBay. These interactions can be evidence if a case is opened against you.
It’s also good to know that Poshmark completes all customer service through email. That means that it can take a day or two to receive a response.
Responses can take even longer you write over a weekend. Knowing that before you encounter a difficult situation will help you keep sane as you wait for an answer.
2) Check the buyer’s feedback
On Poshmark, you can click on a person’s About page to view how long they’ve been a member of the app, their average ship time, and the positive feedback (love notes) they’ve received and given.
If a person is a new user or does not have any apparent buying or shipping experience, you may want to decline or cancel a sale, especially for a high-priced item.
On eBay, you can view a person’s feedback as well. The more positive feedback, the better. You can decide how many negative or neutral reviews are acceptable to you to still be willing to sell to him/her.
This is not to suggest you worry over every buyer with no feedback. Everyone starts at zero purchases. Someone has to give that buyer their first few chances.
Sites like Poshmark have hundreds if not thousands of new users a day. Many first-time buyers are honest and their transactions go smoothly. I wouldn’t worry if it’s a low-value sale.
Buyers: It’s commonly recommended to make one or two small purchases on a platform before making a expensive purchase or selling a high-value item. Any feedback and additional engagement on a platform increases credibility. I’ve found this particularly true on eBay, not so much on Poshmark.
My Poshmark About page with public information
My latest Poshmark love notes (positive feedback)
3) Set criteria for buyers
One way to deter scammers is to set criteria a potential buyer must meet before you will sell to him/her. You can state that a person must have good feedback or a certain number of reviews before purchasing an item.
If a person has a questionable history or does not meet your criteria and makes a purchase, you can discuss it or cancel the order.
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4) Ship packages to arrive on certain days
All Poshmark sales are shipped using USPS Priority shipping, which takes between 1 and 3 days. A buyer then gets 3 days from delivery to accept the item or open a case for it.
Most events like weddings happen on Friday through Sunday. That’s when the gown or high heels you sold might be used. So ship your item so that it arrives on Monday and the buyer must accept it by Thursday.
If the buyer has to accept the item by Thursday, you reduce the likelihood that a person will open a case for it. She has to keep it if she intends to use it over the weekend.
While I haven’t tried this method of timing delivery, I think it’s reasonable to do for high-end items that run a high risk of use and return.
You might wonder if it’s worth delaying your shipping because your average shipping time will take a hit and it’s public on Poshmark. I think it is worth doing to protect your items and your money.
If you do this for only a few of the many items that you sell, your average shipping time will still be reasonable. You can also let a buyer know that you’re delaying shipping for this reason so that he/she understands and doesn’t leave you bad feedback on that point.
5) Ship with tracking
All Poshmark shipping labels come with tracking. The labels are generated by Poshmark, so you don’t have to worry about that.
Mercari labels come with tracking if you purchase shipping through the company versus shipping on your own. The same is true purchasing your shipping labels online through eBay or PayPal.
The problem is when you ship mail on your own. I read about someone who sold high-value Pokemon cards to an eBay buyer through first-class mail. The seller placed the cards in an envelope and placed a first-class stamp on it. There was no tracking.
The buyer opened a case that the item was not received. The seller had no way to verify this as the item was not tracked.
The other time this is an issue is with international sales, which are possible on eBay. You can’t trust the mail system to track your item in many foreign countries. I’ve heard of eBay sellers avoiding selling to specific countries such as Russia and Italy.
You can exclude certain countries or regions in your settings and write it in your listing descriptions.
6 ) Record yourself packaging the item
Another way to deter scammers is to video record yourself packaging an item for shipment. Show the item in detail on camera to record its condition.
Show any flaws and any areas without issue that someone might complain about (e.g., beading and lace). Record the serial numbers of items that have one.
Then record yourself packaging the item, adhering the shipping label with the recipient’s name shown, and putting it in the mailbox or passing it off to the post office worker if you can.
It’s best if you can show all of this in one unedited recording, although it may be difficult to do.
This method isn’t completely foolproof. Poshmark cases don’t let you upload videos.
A seller could redo the package with a damaged item making it look like that’s what you send them. But it is a good deterrent to make would-be scammers think twice before purchasing from you.
Write it in your listing to let potential buyers know that you’re doing this. Honest buyers won’t be afraid of this.
As a buyer, you can record yourself too. I’ve heard of buyers recording themselves opening up packages and documenting the condition of an item upon arrival so that they have evidence in case the item didn’t come as it was described.
Recording myself packaging items. That sweatshirt is a Poshmark purchase!
7) Put your own tag on an item
For high-end items, it might be worth putting your own tag on the item.
You know those tags on new dresses at the department stores? They say that the dress can’t be returned without that tag attached. It’s a great deterrent for people want to buy, use, and return an item.
You can purchase a tagging gun with the plastic barbs online. I must caution you if you use this though: do not put a hole in the item you’re selling.
Even those little barbs can ruin clothes if you tag in the wrong place. You have to tag on an inside seam that’s not visible when the item is being use.
Or better yet, use something like unrippable Tyvek wristbands that don’t go through the item.
These wristbands can only be removed if you cut them off. When someone makes a purchase, write identifying information on it such as your username and attach it to the item.
Make sure the tag is in an obvious place such as on around the strap of a purse so that it cannot be hidden.
If a buyer wants to return the item, you’re pretty much guaranteed to receive your same item back in the condition you sent it versus receiving a knock-off or having your item used.
Again, let the buyer know that you’re doing this ahead of time. A would-be scammer will be deterred and pass on your item or cancel his/her order.
8) Mark items with invisible ink
I’ve heard of people using invisible ink pens to secretly mark their goods.
Electronics are in-demand and expensive, making them easy targets for scammers. I’ve heard many stories of people on eBay selling all kinds of items from iPhones to slow cookers and VCRs. They tested the items, and they worked without a problem.
Once the item sold, the buyer claimed there was something wrong with the item and wanted to send it back for a refund. The sellers were suspicious that they were being sent back the buyer’s old item in bad condition.
To avoid this, sellers state in their listings that they are marking their items to prevent fraudulent returns. They don’t say where exactly the item was marked.
If/when the item is returned, the seller checks that the mark is there. That way they know there’s been no deceptive switch.
9) Block buyers
The easiest way to deal with difficult buyers on Poshmark, eBay, and Mercari is to block them. I’ve heard of sellers blocking people who make low-ball offers or those who ask too many seemingly ridiculous questions. Those people can become difficult buyers once an item is sold and in their hands.
Once you’ve sold to someone and they bring up issues with the item, you can direct them to contact customer service and then block them from contacting you directly or purchasing from you again.
I’ve been fortunate never to have this issue arise on Poshmark, but I have had to block non-paying buyers on eBay. That’s because Poshmark requires immediate payment, while eBay allows time for the buyer to pay.
On Poshmark, you can block a user by clicking on the three dots on the top right whether you’re in the app or on the website. Several options will pop up including one to blog that user.
Option to block a user on Poshmark
10) Take extra precautions for local meetings
eBay and Facebook Marketplace offer the option to meet locally for sales. In-person meetings have their benefits like fast turnaround and quick payment, but they have their own risks. To protect yourself:
Check the buyer’s information (read their feedback, check their profile, Google their name).
Have sellers pay in cash or Venmo. I avoid PayPal because if their 180 day refund policy. You could be out of money and the item 6 months later!
To reduce chances of buyers flaking on a meeting, have the buyer deposit $1 or so via Venmo to claim the item and pay the rest upon meeting. This lets you know the buyer is more serious and you have some information about them before meeting.
Meet in a public place where you can easily turn for assistance and remove yourself from the situation. It’s good if other people are present to witness the transaction. Some police stations have spots in front specifically for these type of transactions.
The reason I write the last tip is that I was almost a juror on a murder case. The murder happened during a public meetup to sell a Play Station. It’s an extreme case, yes, but don’t put yourself in a position to be a victim.
11) Check the item weight
I’ve heard of eBay and Poshmark sellers winning their cases because they had evidence of their package’s weight.
When the seller gets a package scanned in at the post office, she gets a receipt with the weight of the package.
This can be compared to the weight of the item upon receipt at the destination post office and the weight of a box when the item is returned.
Sometimes this is enough evidence that the seller did not send an empty box or that the seller received an empty box upon return of the item.
If you don’t have a receipt with the weight of your package, you can ask your post office to look up the weight of the item.
12) File a report for mail fraud
A buyer says an item is broken, missing a part, or otherwise not as described. He requests a partial or full refund or sends back a different items.
At this point, the seller inform the buyer that he plans to file a fraud reports with the local police and a mail fraud report with the post office. Sometimes this is enough for the buyer to take back their requests or disappear.
1) File an internet crimes IC3 complaint
2) File a USPS mail fraud claim
3) File a fraud claim with your local police department. You may be able to file one with the police department in your buyer's jurisdiction.
4) Get the case numbers and submit them to the marketplace.
Call eBay with the report numbers and request that your money and any shipping costs be refunded to you.
This is one of the best ways to get your money back on eBay when you’ve been scammed because eBay takes the reports seriously.
I’ve never heard of anyone using this process on Poshmark and other marketplaces, but I believe it could be used there too.
I’d caution to use this method only if you’re absolutely sure you’ve been scammed. If there’s any chance at all that you could have made the error in your sale or overlooked something about an item, I would not use this method because it’s reporting someone to legal authorities.
13) Take to Twitter
If you get a returned item that is damaged or different, open a case for it. I got $5 credit for that happening once. I’ve heard of other sellers getting full refunds.
As mentioned above, Poshmark has only email customer service, no phone support. So if that doesn’t go well, another thing you can do is take to Twitter.
When you’re stressed about being scammed, the last thing you want to do is wait a day or two for a short email response that might not even help you.Many Poshmark sellers have received faster response to their issues by taking to Twitter.
They write to Poshmark’s CEO Manish Chandra or on Poshmark’s account requesting help. It’s not a guarantee, but worth a shot when the alternative is being scammed out of a lot of money.
14) Sell what you can afford to lose
I’ve liked the saying “only lend what you can afford to lose” since I first heard it several years ago, and I think it holds true when talking about selling online.
If I lose dress or pair of shoes to a scammer, I’d still be able to pay my bills and buy groceries this month. I’d be sad, but I’d be okay.
I think selling lower-end items greatly reduces the amount of returns and scammers I encounter.
Some people might disagree with me and say that it’s worth your time to sell only high-end items like Chanel or Louis Vuitton bags. You make more profit for the same amount of time researching and listing items as you would with low-value goods.
In this case, it may come down what you have available to sell (I don’t know where to source LV bags!) and personal tolerance for the likelihood of losing an item.
15) Accept it and move on
Sometimes, no matter what you do, you end up on the losing end of a transaction. One of the women I met at the Poshmark event had sold less than 50 items on Poshmark and had 5 contested for not being as described.
She actually came to the Poshmark event that night hoping for tutorials on how to use the app and to speak with Posh employees about the cases she lost. Surprisingly, she wasn’t deterred and continued selling on Poshmark as well as other sites and apps.
Sometimes you have to put negative transactions and feedback behind you and keep going.
Try to remember the positive experiences you have, the good buyers and sellers you encounter, and why selling online is worth it to you. It’s enough for me to move past any issues I’ve had and keep on selling.
After writing this article, I hope I haven’t scared anyone away from buying and selling online. I still think the benefits of selling online far outweigh the negatives. You can clear the house, earn money, make online friends, and have fun while doing it. I’d love to hear your thoughts on the topic too.
What are some of the good and bad experiences you’ve had buying and selling online? Do you have any tips to protect yourself from scammers?
