Back in the late 1990's to mid 2000's Ebay was an absolute riot. The number of fraudulent transactions was ridiculous. It was basically an unregulated wasteland of sellers and buyers with absolutely NO way getting any recourse for any wrong doing whatsoever. Paypal was non existent, eventually barely existed, and eventually bought out by Ebay. On the same front the Ebay fees were significantly less as was the paypal fees. I want to say that I was only paying 6-7% in fees TOTAL between Ebay and Paypal back then. Very easy to turn a profit. Plus Shipping and Handling was cheaper as well. I think a flat rate USPS envelope was only 3.25 USD if I remember right.
Ebay used to be significantly in favor of the Seller. Seller's with high feedback rating would basically be able to ignore any small fry because if you had 10,000 + feedback, one negative wasn't going to hurt you. The feedback was simply based off your total number and there was no calculated percentage as there is in today's Ebay market. Seller's could basically hold buyer's hostage over the threat of a seller leaving a buyer negative feedback. It today's ebay climate, as a seller you basically have to do whatever it takes to make the buyer happy or you could get negative feedback, unlike before, there was always the threat of being left negative feedback as a buyer if you gave the seller negative feedback. Kind of like an eye for an eye thing.
There was also no Ebay Money Back Guarantee, and probably over half the transactions were done with money orders..... You can only imagine how that went. Total Disaster again. If the item wasn't as described or never came, there was pretty much no way to get your money back unless you paid via paypal with a credit card and not your bank account. If you paid with your bank account you were screwed. Why were you screwed you ask? Because back then paypal only allotted you a total 3 transactions up to $200 dollars a piece in protection for a grand total of $600 dollars in protection per calendar year!!! That's all you were protected if you either used paypal funds or bank account funds!!! $600 dollars!! And on top of that they charged you $25 dollars per transaction to get your money back!!! So only $525 dollars of true protection!! Per calendar year!!
How do I know this? BECAUSE PAYPAL SCREWED ME!! I bought a couple thousand dollars of lego's from someone with a flawless rating, whose account must have been hijacked. I used a variety of funds between paypal funds, my CC, and my bank account. When the transactions went bad, I charged back as much as I could from my CC, went to my bank, and then complained with Paypal. Well my CC was easy, they refunded everything I had with them. My bank gave me back the cash after I filled out a ton of paper work. Paypal gave me back $525 dollars, but I still lost a ton. Oh but wait, then paypal took everything my bank took from paypal RIGHT BACK OUT OF MY BANK ACCOUNT without any email or anything, after my bank already pulled the money from Paypal. Paypal literally just took my money for merchandise that was never delivered. Keep in mind that everytime you checked out with paypal back then they basically put up a screen about how safe paypal was and how it was just as safe as a credit card if you used paypal funds, instead of a credit card. TOTAL FALSE ADVERTISING!!!!
I was LIVID but there was not much I could do. A couple years went by, and in 2008 I randomly get a post card for a class action lawsuit against Paypal due to their false advertising about the safety of using Paypal funds to pay. I go to the website. Download some paperwork, fill it all out, listing all the transactions that paypal lost me money on, etc. and mail it back. 3 years later, I randomly get a check for a couple thousand dollars in the mail for the class action lawsuit. It ended up being more than I actually lost.
Lesson here. Don't ignore those class action lawsuits.
While ebay fees and paypal fees are crazy high these days, at least there is some protection. Before Ebay offered NO PROTECTION at all and Paypal offered a minimal amount of protection, masking themselves as credit card level protection. Ebay over the years has continually decreased the rights of sellers and placed it all in the hands of the buyers to the point that sellers now have to protect themselves from chargebacks at all costs.
The fraudulent seller's are definitely getting trickier. One seller recently tried to claim he sent me a large camera lens, and it was delivered to an address (obviously not mine as I never received it) in my zip code. He never responded to my emails and I guess never responded to ebays as he disappeared. But it states delivered inside mailbox. A camera lens of this size would not be able to fit in my mailbox if it was even delivered to my mailbox. So he basically sent an envelope to a random address in my zipcode for proof of delivery. Either way, any package over 750 dollars must be signed for by someone or you are not protected as a seller on Ebay so they automatically decided in my favor because of that.
The point is that fraudulent sellers are getting creative. On any high end merchandise I buy on Ebay I always video tape opening the box for proof in case I get sent a bag of rocks.