Disputes - Merchant response experience with AI
Context
When buyers file disputes on PayPal, a case is created and then sent to sellers. The seller's role here is to review and respond to these disputes. Responding means they will have to resolve the issue the buyer's facing with their order by either issuing a refund or providing proof that the buyer's claim might be wrong.
This page showcases the seller response flow where they get options to send a response. We offer them AI-based recommendations and guidance tailored for them and their buyers.
Product Metrics
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Seller Response Rate: Percentage of disputes in which sellers submit a response or supporting documents.
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Seller Response CES: Measures how easy or difficult it is for sellers to respond to disputes and submit supporting documents
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Seller Win Rate: Percentage of disputes resolved in favor of the seller among disputes with a decision.
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Seller Response Time: Average time taken by sellers to respond to a dispute or submit supporting documents.
Business goals
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Churn: Percentage of sellers who stop using PayPal over a defined period.
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TPV (Total Payment Volume): Total value of payments processed by sellers through the platform.
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Involuntary Refund Rate: Percentage of transactions resulting in refunds initiated without the seller's explicit consent, such as through dispute outcomes.
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Seller Appeal Rate: Percentage of disputes resolved against sellers and then appealed by them.
My Guidance
My guidance on this project covered the full experience, with a focus on the language we used to guide and educate sellers. We wanted recommendations to feel helpful rather than overwhelming, so the guidance stayed focused, easy to take in, and unobtrusive. I paid close attention to terminology. For example, we chose "Don't agree with the case?" over more confrontational phrasing like "Dispute this claim," because neutral, low-key language kept sellers calm and open to resolving the issue.
Foundational work
Audit of existing experience/Gap analysis
We audited the existing merchant response experience to understand gaps and problems. The underlying theme that emerged was that the sellers did not have adequate guidance while responding. They did not know what options would be best for them based on the type of buyer. Most sellers who wanted to respond to a case were either confused about what to focus on or what they needed to do to win the case.
Reviewing research data on SMBs (primarily)
We had a lot of research done to understand sellers, specifically SMBs, who were a chunk of our customer base and the most frequent users of the Resolution Center. We wanted to create an experience that catered to their needs, customised, guided, seamless, and completely hassle-free.
Some key problems that emerged -
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Insufficient guidance and education on how to manage a case
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No recommendations to make sure the right response was chosen
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No clear case updates on what happens next
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No clear guidance on the right type of documents to submit
Experience Strategy
A seller who gets a dispute has money on hold, there's a deadline, and in PayPal, they've always historically felt buyers are favored. Our strategy was to turn the dispute from a heavy task into a guided decision: one that helps sellers understand what happened, choose the right response with confidence, and resolve the case quickly and fairly for both sides.
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Start with the buyer's story, not the case type
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Focus on a clear decision before responding
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Recommend, but keep the seller in control
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Ask only for what's needed, when it's needed
Experience decisions
Our goal was to make the experience clean and easy for sellers to respond accurately within the given ETA.
The experience followed these principles -
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Clear entry point through the "Respond" CTA
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Focused response options with a recommendation of what best suits the seller, customized by item type
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Progressive sections based on what the seller selects. Either sending a refund to the buyer or sharing supporting documents
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Clear, direct, and helpful messaging with recommendations for sellers to get the needed guidance before responding
Case Details with Respond CTA
Focused response options with AI recommendations
Clear messaging if the seller chooses to give a refund
Clear guidance on documents to submit if the seller chooses to give proof
Recommendation if the seller chooses to ask for an item return from the buyer
