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It's true that it doesn't given a lot of protection against a determined scammer who will simply buy five, or ten, or however many £1 items before they start, but it's marginally better than nothing.
I've said this before I know, but business sellers selling large numbers of cheap items just treat the small percentage of rogue buyers as part of the cost of doing business - private sellers selling a small number of expensive items can't.
I work for a small online seller who does some of their business through Ebay - the percentage of bad buyers isn't high, but it's probably high enough that I would not take the chance if I was selling something I couldn't afford to lose. We never normally even bother to dispute non-delivery claims either, it's simply not worth it.
"Take these three items, some WD-40, a vise grip, and a roll of duct tape. Any man worth his salt can fix almost any problem with this stuff alone." - Walt Kowalski
"Only two things are infinite - the universe, and human stupidity. And I'm not sure about the universe." - Albert Einstein
How is it you get scammed?
I always thought if the buyer pays through paypal as 'goods' not as a gift, and you send inusured, tracked and signed for then how do they manage to get their money back and keep hold of the goods?
I presumed if they somehow reversed the paypal transaction for goods, yet didnt send the item back to you tracked with proof of delivery, then paypal would surely step in and sort that out for the seller?
Or can paypal not do anything if the scammer has no paypal credit in his account?
I dunno, I always thought paypal goods and sending tracked and signed for was a pretty safe combo, as you have proof of everything should anything go wrong for ebay/paypal to rectify and reinburse you, even if the actual scammer still gets away with it..
Bandcamp
Spotify, Apple et al
Crazy charges these days.