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PayPal Dispute Item Not Received: How To Solve It? [Guide for 2025]

18 February, 2025

Let’s face it: dealing with PayPal disputes isn’t anyone’s idea of fun. Whether you’re a buyer wondering where your package is or a seller trying to keep customers happy, these situations can feel overwhelming. But don’t worry—this guide breaks down everything you need to know about resolving PayPal’s “Item Not Received” (INR) claims step by step.

Why Does “PayPal Dispute Item Not Received” Happen?

Why does PayPal dispute item not received?

PayPal is a go-to for online payments, trusted by millions for its security and ease of use. Its Purchase Protection program is a safety net for both buyers and sellers, covering situations where orders don’t go as planned. But when items don’t arrive, it’s important to act quickly and follow the right steps to avoid losing time or money.

PayPal disputes usually fall into two buckets:

  • Item Not Received (INR): The buyer paid, but the item never arrived. This is the most common dispute type.
  • Significantly Not as Described (SNAD): This applies when the item received doesn’t match the description.

Why does PayPal dispute item not received? Sometimes, it’s just a shipping delay. Other times, packages might get lost, addresses are entered wrong, or there’s a simple misunderstanding about when an item will arrive.

If any of the above take place, PayPal will notify you through email. They’ll also start a case in the PayPal Resolution Center, the exclusive place for customers and merchants to communicate and settle complaints.

You will have exactly 20 days to reach a deal with your buyer. However, if you were unable to come to an agreeable compromise, your buyer can decide to turn the dispute into a PayPal claim for the item not received.

A claim is made when someone requests their money back and asks PayPal to take part in the mediation.

>>> Learn more: PayPal Suspended Account – How To Fix It?

How To Resolve If PayPal Dispute Item Not Received?

When a buyer claims they haven’t received an item, PayPal often sides with the customer. However, sellers can successfully challenge these disputes by providing solid proof, such as delivery confirmation from a courier. This must show that the item was delivered to the buyer’s registered PayPal address.

PayPal Resolution Center

This refund process, while protective of buyers, makes PayPal a trusted and preferred payment platform for many consumers. But as an online seller, what steps can you take to handle such disputes effectively? Here is what you need to handle it effectively:

  1. Log in to the PayPal Resolution Center.
  2. Locate your case under the “Action” section and click View.
  3. Submit all supporting documentation:
  • A third-party shipping receipt tracking number 
  • A signature confirmation proof of refund and other evidence to show the buyer has received the item 
  • A downloaded your products (in the case of digital goods)
  1. If the buyer escalates the dispute to a claim, you will have 10 days to provide your evidence.

PayPal will then review the information and typically make a decision within 10–14 days. Throughout the process, you can monitor the case status and add more details in the Resolution Center if needed.

How To Win PayPal Dispute Item Not Received?

Provide Trackable Proof of Delivery

If you want to win a PayPal dispute, having solid proof that the item was delivered is essential. PayPal requires sellers to submit specific evidence, including:

  • Tracking information from a reliable courier service.
  • Delivery confirmation that shows details like the recipient’s name, signature, or the time of delivery.

Without this evidence, PayPal almost always sides with the buyer. That’s why tracking packages is crucial, it’s your best line of defense. To simplify this process and make disputes easier to manage, consider using tools like Synctrack to automate tracking and ensure everything is well-documented.

Synctrack on app store

Send Packages Insured and Provide Accurate Delivery Dates

Taking preventive steps can go a long way in avoiding disputes altogether. By protecting your shipments and setting clear expectations, you can minimize issues before they arise.

  • Insure your packages: Shipping insurance is a smart way to protect yourself against financial losses if a package is lost or damaged.
  • Provide accurate delivery timelines: Many disputes happen because buyers don’t get their orders on time. Setting realistic delivery dates and notifying customers promptly about delays can help avoid misunderstandings.

Communicate Product Details Clearly

Honesty is the best policy when it comes to product descriptions. Clear and detailed communication helps set realistic expectations for buyers, reducing the chances of dissatisfaction.

  • Write comprehensive product descriptions that leave no room for doubt.
  • Include high-quality images that show your product from different angles.
  • Avoid making exaggerated claims or promising features your product doesn’t offer.

When buyers know exactly what to expect, they’re far less likely to file disputes. Transparency builds trust and keeps your customers happy.

Build Strong Customer Service Practices

Good customer service can make all the difference in resolving disputes or preventing them in the first place. If buyers feel supported, they’re more likely to work with you to resolve issues rather than escalate them.

  • Respond promptly: Answer questions and concerns quickly and professionally.
  • Offer a fair return policy: Make sure your return process is clear, easy to follow, and equitable for both you and the buyer. You can try  SyncTrack. It simplifies the returns and exchanges process by automating key steps, ensuring faster resolutions, reducing errors, and providing transparency for both you and your customers. This app will help you maintain a hassle-free return policy while saving time, cutting down on manual work, and improving your overall customer experience.
  • Keep buyers informed: Provide updates at every stage, from order confirmation to delivery.

How Synctrack Helps with PayPal Disputes

Synctrack PayPal Tracking Sync Shopify

Dealing with PayPal “Item Not Received” disputes can be both stressful and time-consuming for sellers. To resolve these disputes successfully, providing accurate tracking information to PayPal is essential. That’s where Synctrack comes in. By simplifying and automating the process, Synctrack helps sellers prevent disputes and handle them efficiently. Here’s how:

Automates Tracking Information Updates

Updating tracking information manually for every order can be a hassle—and mistakes are easy to make. Synctrack solves this by automatically syncing tracking details directly to PayPal as soon as your items are shipped.

Key Benefits:

  • Faster fund releases: PayPal is more likely to release your funds quickly—often within 1–3 days—when tracking information is readily available.
  • Fewer errors: Automating the process eliminates the risk of forgetting to upload tracking numbers, a common cause of disputes.
  • Better organization: All tracking details are stored in one place, making it easy to access them if a dispute arises.

Provides Accurate Proof for Dispute Resolution

When a buyer files an “Item Not Received” dispute, PayPal asks for concrete proof of shipment and delivery. Synctrack ensures you’re ready with all the evidence PayPal requires, including:

  • Tracking numbers from approved couriers.
  • Delivery confirmation details, such as the recipient’s name, delivery date, and time.
  • Updates for all orders, including non-standard cases like store pickups or digital items.

With these details automatically synced, Synctrack helps you respond quickly and effectively to disputes, giving you a better chance of resolving them in your favor.

Prevents Disputes Before They Occur

To prevent and reduce the chances of “Item Not Received” disputes, follow these best practices:

  1. Provide Real-Time Order Tracking: Use apps that let customers track their orders in real-time, ensuring transparency about their shipment status. Then, use Synctrack PayPal Tracking to automatically sync tracking information with PayPal as proof, allowing PayPal to send email notifications to customers.
  2. Send Order Updates: Keep customers informed by sending notifications for every update related to their order, such as shipping confirmation or delivery status.
  3. Address Issues Proactively: Monitor shipments closely and resolve exceptions (e.g., delays, lost packages) before customers raise complaints.

When customers know exactly where their orders are and when they’ll arrive, disputes are far less likely to happen.

Simplifies Multi-Store Management

For sellers running multiple stores, keeping track of orders and shipments can be overwhelming. Our Synctrack Order Tracking simplifies this by:

  • Offering a single, centralized platform to manage tracking for all your stores.
  • Streamlining operations with one subscription that covers multiple stores.
  • Ensuring every order receives consistent tracking updates, no matter which store it originates from.

This streamlined approach saves time, reduces errors, and ensures that no orders are missed.

Ensures Compliance with PayPal’s Standards

PayPal has specific requirements for tracking information and dispute resolution. Synctrack helps you meet those standards effortlessly by:

  • Automatically syncing tracking details in line with PayPal’s policies.
  • Providing free store reviews to identify areas for improvement and better align with PayPal’s guidelines.
  • Reducing chargebacks and account reserves by maintaining accurate and complete tracking records.

Staying compliant not only helps resolve disputes but also fosters trust with PayPal, leading to smoother transactions and fewer restrictions on your account.

PayPal Dispute Item Not Received FAQs

Will PayPal Refund for an Item Not Received?

Yes, PayPal may hold sellers responsible if a buyer claims they did not receive an item. If the seller cannot provide proof of delivery—such as a valid tracking number showing the item was delivered—PayPal will typically issue a refund to the buyer under its Buyer Protection policy. To avoid losing disputes, sellers should always use trackable shipping and provide delivery confirmation.

Is PayPal responsible for refunding buyers if an item is not received?

Yes, PayPal may refund the buyer if they file a dispute and the seller cannot provide proof of delivery. If tracking does not show that the item was delivered, PayPal will usually side with the buyer.

Is there a way for sellers to win an item-not-received dispute?

Yes, sellers can win by providing valid proof of delivery. This includes:

  • A tracking number that shows the item was delivered to the buyer’s address.
  • Signature confirmation for orders over $750.
  • For digital products, proof of access or download logs.

Are there ways to prevent PayPal disputes for item-not-received claims?

Yes, sellers can reduce disputes by:

  • Using trackable shipping and sharing tracking details with buyers.
  • Requiring a signature for expensive items.
  • Setting clear shipping expectations and updating buyers on delays.
  • Purchasing shipping insurance for high-value items.

Final Words

Dealing with PayPal disputes over items not received isn’t something anyone looks forward to, but it’s a common challenge in online commerce. The key to successfully resolving PayPal disputes lies in clear communication, solid documentation, and prompt action. Stay organized and professional throughout the process, and you’ll be well-equipped to handle any dispute that comes your way.

Surely you don’t have to worry about PayPal dispute item not received anymore, right? With our solution – Synctrack PayPal, winning the disputes is a no-brainer.