How do people sell on eBay below cost?
Well, I've got to say I've always wondered this myself. There are constant calls and emails to us asking for price matches to eBay for items being sold as "Brand new" for far below our cost. But how do they go about doing this? Simple: Fraud. But it's not the type of fraud that you first think of with eBay. This is a smarter fraud. One that we've had the pleasure recently of being on the wrong end of. We let our guard down and got nailed, so our internal policies are changing. They're having online merchants ship the products to whoever buys the item... but placing the order with a stolen credit card. You see, online business isn't where credit card fraud originates. Sure, there are select cases where that's happened. But, for the most part, credit card fraud begins offline with someone getting a credit card via physical means, then moves to online to do the fraudulent transaction. Rand Fishkin says we're all going to have to figure out how to...