She claims that she has sent the item back but for over 1 month I haven’t received it. I don’t know where I can find the tracking number so I don’t know if she really sent it or not. Now she has escalated the dispute to claim and PayPal is asking me for information.
The reason is “Not as described”. So how do I respond to this?
I mean, in the dispute, we agreed that I’ll issue a full refund as soon as I receive the package she return to us but we never received this package that she claimed to have sent back. Now she’s escalating this to a claim and PayPal is asking me for documents. How can I provide any documents that would prove she hasn’t sent the package?
Start by providing the documents that prove that the goods were originally shipped to her from you. Confirm that you have agreed to the refund when the goods are returned and that you have not yet received them. Ask Paypal to get the buyer to provide the documents that show that they returned the goods.
This is a common problem and one frauds use all the time - they know they have you by the balls with PayPal always on their side. I have seen forums where people discuss the ways they can get products for free by claiming the item is faulty or not wanted, claiming to send it back, and then using PayPal to do their dirty work - they know that most e-commerce relying on PayPal would rather swallow their losses than risk losing such a payment method entirely.
You really should make sure you have a statement in your terms and conditions/return policy requiring registered or recorded returns, this way they have to provide evidence that they did return the item to you. Point out that this is for their protection as well as yours, and that you cannot be held responsible for items lost in the mail process by those who do not return them with proof or sending.
As it stands you have two options, try to fight this with PayPal (who will probably say the same thing I have said and find in favour of the customer) or swallow the cost and treat it like a learning experience, and update your terms and conditions today.
I’ve been in this situation before. My best advise would be to contact the buyer,
if they do not pick up. Start gathering as much documention as possible and
provide it to paypal.