Tom-Chris Emewulu
Chief Disputes Analyst

When a buyer opens an Item Not Received PayPal Dispute against you, there are easy ways to manage the dispute and win.

Customers file a PayPal Dispute on their orders for two reasons:

1) Item Not Received (INR): The customer placed an order and paid for an item but did not receive it because the merchant was unwilling or unable to fulfill the order.

2) Significantly Not As Described (SNAD): The customer states the product they received is significantly different from what the merchant described.

When any of the above happens, PayPal will send you an email notification of the dispute. They’ll equally open a case in the PayPal Resolution Center, the exclusive communication platform where customers and merchants can resolve disputes.

You and your customer will have precisely 20 days to resolve the dispute. But if you failed to reach a satisfactory compromise, your customer may choose to escalate the dispute to a Claim. 

A claim means they want their money back and seeks PayPal's involvement in the mediation process. 

The standard practice is to resolve the PayPal dispute directly with your customer before they escalate it to a claim. And for this article, we shall major on vital tools to help you resolve any Item Not Received PayPal Dispute without hassle. You will also learn how to resolve a Claim in your favor.

Let’s begin!

How to win Item Not Received PayPal Dispute

The first thing you need to know about Item Not Received PayPal disputes is that a significant number of them are illegitimate.

Online shoplifters are increasingly weaponizing PayPal disputes and chargebacks to commit friendly fraud nowadays. 

I think that term is a misnomer because there’s nothing friendly about intentionally disputing orders one received in good condition as otherwise. But that’s the reality of the digital commerce landscape today. Anticipating such risks will make a world of difference for your business, as PayPal disputes keep rising with every transaction. 

Below are the vital steps you must take to win any meritless Item Not Received PayPal dispute:

Have a trackable proof of delivery

If a customer filed an Item Not Received dispute against you, PayPal would request for pieces of evidence that show otherwise. And if you don’t have such compelling evidence, you will lose the case. 

Hence, we advise that you should ship your orders with tracking services.

Tracking a package is critical as it provides concrete proof the item reached the buyer. 

A tracking system works with a bar code attached to an order-in-transit. It helps handlers get specific information about the parcel, such as where it originated from and its destination. This information will be available on the shipping company’s website and remains evidence that the package passed that route. That also helps the buyer and the seller to quickly get relevant, just-in-time details on the package's location.

The absence of such data means you’ll lose the dispute. PayPal will automatically side with the customer if you don’t have trackable proof of delivery.

But that’s not all the order delivery evidence you need to overturn an Item Not Received dispute. In addition to order tracking information, you should equally include other compelling evidence as follows:

  • A tracking link that shows the order journey -- from your store until it was delivered. 
  • The cardholder’s signature on the pick-up form. If available.
  • A signed contract or other evidence indicating you offered the services/delivered the merchandise.
  • A copy of identification presented by the cardholder, if available.
  • The details of the title issued by the cardholder.
What if I sold an intangible product?

Intangible products might not have tracking services, but you can use other creative ways to protect yourself when a customer files Item Not Received PayPal Dispute. If you sold a digital product, then add the following:

  1. An IP address
  2. Timestamps
  3. Server or activity logs to show he or she accessed the product or service.

Send your package insured, communicate better with customers, and provide realistic delivery dates.

Insurance coverage on orders helps to indemnify you from a mishap on your shipment. Put yourself in the buyer’s shoes. Even though merchants are not responsible for any damage or loss of orders in transit, customers will still hold you liable for such issues. They bought the product from you, and you need to deliver it to them.

Hence, you must ensure you insured the shipment; after all, the buyer pays postage costs. Insuring your package will minimize a PayPal dispute occurrence due to a lost or impaired product. The shipping company will compensate you when such incidents arise. They will reimburse you the order value and shipping cost, making it possible to replace your customer’s order.

It is also worth noting that customers often open an Item Not Received PayPal Dispute when they don’t receive their orders early. You can avoid this by giving realistic delivery dates. 

Consider possible delivery delays. Don’t take more orders than you can handle. Provide a minimum/maximum order delivery date to avoid excessive pressure in order fulfillment. 

And if you can afford it, integrate automated order management software to help you create an accurate order fulfillment schedule. Also, you can hire an Order Fulfilment Service to enhance efficiency. 

That said, it’s supremely vital that you accurately communicate the features and benefits of the product to users. Don’t mislead your buyers; include pictures of the product from multiple dimensions.

Lastly, for this point, please understand that when customers make an order, the next thing they expect is to receive it. Provide helpful customer service and work out legitimate concerns accordingly. Ensure you have an excellent return policy. Merchants that do not have a well-written order fulfillment policy always fall prey to Item Not Received PayPal Dispute.

How to respond and win an Item Not Received PayPal Dispute 

Take the steps below to respond to the Item Not Received PayPal dispute:

  1. Login to the PayPal Resolution Center.
  2. Click “View” under "Action," which is next to your case.
  3. Respond to the buyer by entering all the documents mentioned above (order tracking information, delivery confirmation, etc.) and click Send.

If your customer escalated the dispute to a claim, you must respond within ten days. After you’ve submitted your compelling evidence, PayPal will review the case and decide the outcome.

That happens within 10-14 days for most claims. 

You can always see the case status and, if need be, provide additional information in the Resolution Center. If you lose the case, you can appeal it with the tips we discussed in this article

Automate your PayPal Dispute Management Processes

In addition to providing detailed, accurate descriptions of what you sell, adding tracking information to shipments, and posting your return policy where customers can see it, you should get an extra layer of Item Not Received protection with PayPal Dispute Automation.

Here’s why. Dispute automation increases your dispute win rate and helps you reallocate your human and material assets where the business needs them the most. You also get unbelievably extensive data on each transaction to accurately estimate future sales and mitigate payment fraud.

And Chargeflow has designed the world's first fully managed dispute and chargeback automation service, designed for e-commerce merchants.

Our software creates customized templates based on your store's needs, generates the world's most comprehensive dispute responses, and submits them on your behalf. That means you will recover more money, save more time, and maximize your customer experience.

You should experience the Chargeflow Exceptionalism for yourself.

Chargeflow comes out head and shoulders taller than all disputes and chargeback tools in the market today. Our differentiation includes the unique functions listed below.

Audited by Dispute Experts: We take your disputes seriously. Hence, before sending out your ChargeResponse®, one of our Dispute Experts will human-proof it and double-check that your response is in a position to win.

Success-based pricing: It's pretty simple. We make money only when you make money, so it is in our best interest to help you recover (a lot) more money. Oh, and we have a 9X ROI Guarantee, so... we'd call it a good deal. We don't earn a dime if the dispute is not settled in your favor.

2-Step Installation: No coding. No sales calls. We have fully utilized the web's power to make Chargeflow the easiest and fastest way to help you eliminate PayPal disputes and focus on the critical things.

As they say, a trial will convince you; try out Chargeflow today! The first ten disputes resolved in your favor are FREE. Sign up here.

Average Dispute Amount
Average Dispute Amount
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# Disputes Per Month
Time Spent Per Dispute
Time Spent Per Dispute
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