Online Marketplace Disputes: eBay, Etsy, Facebook, and Resale Apps

Online marketplaces connect millions of buyers and sellers, but disputes are common. Whether you received a fake item, nothing at all, or can't get your money back, understanding each platform's protections and your legal options is essential. For more information on your consumer rights, visit the FTC Consumer Protection website.

Platform First: Most marketplace disputes must go through the platform's resolution process before other options. This is often required and frequently effective.

Common Marketplace Problems

Buyer Issues

  • Item not as described
  • Counterfeit or fake products
  • Item never arrived
  • Wrong item shipped
  • Damaged in shipping
  • Seller refuses return/refund

Seller Issues

  • Buyer claims not received (but it was)
  • False "not as described" claims
  • Return of different/damaged item
  • Payment reversed after delivery
  • Buyer remorse refund abuse

Platform-Specific Protections

eBay Money Back Guarantee

  • Item not received
  • Item not as described
  • Must open case within 30 days
  • Try to resolve with seller first
  • eBay steps in after 3 business days
  • Full refund including shipping

Etsy Purchase Protection

  • Item never arrives
  • Significantly not as described
  • Damaged or wrong item
  • Contact seller first
  • Open case after 48 hours
  • Etsy may refund if seller doesn't

Facebook Marketplace

  • Purchase Protection for shipped items
  • Must use in-app checkout
  • Local pickup not covered
  • Report within 45 days
  • Facebook reviews disputes

Poshmark

  • 3-day inspection period
  • Funds held until buyer accepts
  • Report issues before accepting
  • Poshmark mediates disputes

Local Pickup Risk: Most platforms don't protect local/in-person transactions. If you buy locally and pay cash or Venmo, you're largely on your own.

Filing Platform Disputes

Before Filing

  1. Contact seller through platform messaging
  2. Clearly explain the problem
  3. Give reasonable time to respond
  4. Document all communications
  5. Keep everything on-platform

Opening a Case

  • Provide order/transaction details
  • Describe issue clearly
  • Upload photos/evidence
  • State what resolution you want
  • Respond promptly to platform requests

What Platforms Consider

  • Listing description vs. what arrived
  • Photos from listing and received item
  • Tracking and delivery confirmation
  • Message history
  • Account history of both parties

Counterfeit Goods

Identifying Fakes

  • Price too good to be true
  • Quality discrepancies
  • Missing or wrong tags/labels
  • Packaging differences
  • Missing authenticity cards/receipts

Counterfeit Claims

  • Strong grounds for refund on platforms
  • Document all authenticity issues
  • Get authentication if possible
  • Report seller for policy violation
  • Selling fakes is illegal

Brand Authentication

  • Some brands offer free authentication
  • Professional authentication services exist
  • Keep authentication documentation
  • Useful for valuable items

Counterfeit Sales Are Illegal: Selling counterfeit goods violates federal law. If you receive a fake, the seller has committed fraud - this strengthens your claim.

Payment Method Disputes

PayPal Purchase Protection

  • 180-day dispute window
  • Item not received
  • Significantly not as described
  • Must file through PayPal
  • Can supplement platform protection

Credit Card Chargebacks

  • 60-120 days from statement
  • Merchandise not received
  • Not as described
  • May need to exhaust platform options first
  • Strong fallback option

Venmo/Zelle/Cash App

  • Minimal protection for purchases
  • Designed for friends/family
  • Avoid for marketplace transactions
  • Very difficult to recover funds

When Platform Resolution Fails

Escalation Steps

  1. Appeal platform decision if available
  2. Contact platform customer service directly
  3. File credit card/PayPal dispute
  4. Report to FTC
  5. State attorney general complaint
  6. Send demand letter to seller
  7. Small claims court

Small Claims Considerations

  • Need seller's real name and address
  • May be in different state/country
  • Worth it for significant amounts
  • Default judgment if seller doesn't appear
  • Collection may be difficult

Finding Seller Information

  • Platform may provide for legal action
  • Shipping return address
  • PayPal transaction details
  • Business registration searches

International Sellers: Pursuing sellers in other countries is extremely difficult. Consider this when buying from international sellers - stick to platform protection.

Protecting Yourself

Before Buying

  • Check seller ratings and reviews
  • Read listing carefully
  • Ask questions before purchasing
  • Be wary of too-good prices
  • Use platform payment systems

Payment Safety

  • Pay through platform when possible
  • Use credit card for protection
  • Avoid Venmo/Zelle for strangers
  • Never wire money
  • Don't pay outside platform

Documentation

  • Screenshot listings before buying
  • Save all messages
  • Photograph items when received
  • Keep packaging as evidence
  • Note date received

For Sellers

Protecting Against Fraud

  • Always use tracking with signature
  • Photograph item before shipping
  • Video pack and ship process
  • Keep shipping receipts
  • Document condition thoroughly

Fighting False Claims

  • Provide all evidence to platform
  • Show original listing photos
  • Submit tracking proof
  • Point out buyer history if relevant
  • Appeal unfavorable decisions

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