Non-Delivery of Merchandise
Non-delivery of merchandise is a scheme most often linked to Internet auction fraud, in which a seller on an Internet auction website accepts payment for an item yet intentionally fails to ship it. Sellers like these sometimes will relist the item and attempt to sell it again through a different username.
Non-delivery of merchandise can also be considered a form of business fraud in a number of cases. For example, some web-based international companies advertise in the U.S. for affiliate opportunities, offering individuals the chance to sell high-end electronic items, such as plasma television sets and home theater systems, at significantly reduced prices. When these items sell and the funds are forwarded to the companies from their affiliates, the items fail to ship to the individuals who sold them and thus never make it to their respective buyers.