How to Sue an Online Seller Who Scammed You

How to Sue an Online Seller Who Scammed You (Small Claims Guide)

You paid for something. It never arrived, or it showed up as obvious junk, or the seller vanished the moment your money cleared. Now you're sitting there wondering if there's anything you can actually do. There is. If you want to sue an online seller scam artist, small claims court is built for exactly this. This guide walks you through every step, from your first move after getting ripped off to what happens if you have to walk into a courtroom.

Fair warning upfront: small claims court is not magic. Some cases aren't worth pursuing financially. We'll help you figure out where you stand before you spend any more time or money on this.

The Most Common Online Seller Scams

Online scams fall into a few familiar patterns. Knowing which one hit you matters because it shapes what evidence you'll need.

  • Never shipped. You paid. They said it shipped. Tracking never updated. The seller went silent.
  • Counterfeit goods. You ordered a brand-name product and received a cheap knockoff. Sometimes the packaging looks close enough that you almost don't notice.
  • Fake product descriptions. The listing said one thing. What arrived was something completely different, sometimes functionally useless.
  • Service not delivered. Freelancers, contractors, and gig workers who took your deposit and disappeared. This happens constantly and is 100% actionable in small claims.
  • Bait and switch. The seller accepts your order, then tells you the item is out of stock and offers a substitute that's worth half the price.

All of these are breaches of contract at minimum. Some cross into fraud. The distinction affects how you frame your claim, but small claims court handles both.

Start Here: Chargebacks and Platform Disputes

Before you file anything with a court, you need to exhaust your faster options. Not because you have to legally, but because they're free, faster, and might get your money back in a week.

Credit Card Chargebacks

If you paid with a credit card, call your bank today. Credit card companies have a process called a chargeback where they reverse the transaction if you can show the seller didn't deliver what was promised. You typically have 60 to 120 days from the transaction date to file one, depending on your card issuer.

Tell your bank: the item was not received, or the item was significantly not as described. That's the language that triggers the dispute process. Have your receipts and any seller communication ready when you call.

PayPal, eBay, and Amazon Disputes

Each major platform has its own buyer protection program. File a dispute through the platform first. eBay's Money Back Guarantee and Amazon's A-to-Z Guarantee are genuinely strong protections. PayPal's dispute resolution is hit or miss, but still worth trying.

Document everything during this process. Screenshots of the dispute, the seller's responses (or lack thereof), and the final decision from the platform will all matter later if you end up in court.

When the Platform Says No

Platforms deny claims. Banks sometimes side with sellers. If you've been through those channels and still have nothing, that's when a demand letter becomes your next move, and where things get serious for the seller.

A demand letter is a formal written notice that says: you owe me money, here's why, pay me by this date or I'm taking you to court. It sounds simple because it is. But a formal demand letter sent via certified mail carries legal weight that a heated email does not.

Many sellers, especially small operations and individual fraudsters, pay up when they receive a certified letter. Why? Because a certified letter signals you're serious. It creates a paper trail. And it often makes them realize you know what you're doing.

The letter should include the amount owed, a clear description of what happened, any relevant dates and order numbers, and a deadline (usually 10 to 14 days) to pay or respond. Keep the tone firm and factual. No threats, no profanity. Just facts and a clear consequence.

Finding the Seller's Real Identity and Address

Here's where people get stuck. The seller on eBay has a username like "best_deals_2023" and no physical address listed. You can't serve a lawsuit to a username.

Start with what you have. If they ever sent a shipping label, that label might include a real return address. If they have a website, check WHOIS records for the domain registration. Many sellers who operate as businesses have to register with their state, so search your state's Secretary of State business lookup tool and the seller's state if you know it.

If the sale happened on a platform like eBay or Etsy, you may be able to request the seller's contact information through the platform's legal process. Courts can also issue subpoenas to platforms to obtain seller information once a case is filed.

Some sellers operate as LLCs or corporations. In that case, look up their registered agent, which is the person or company designated to receive legal notices on their behalf. Every state has a public database for this. Google "[state name] registered agent lookup" and you'll find it.

Building Your Evidence File

Evidence wins cases. Before you file anything, pull together everything you have.

  • Screenshots of the original listing. The product description, photos, price, and seller's username. Get these before the seller takes the listing down.
  • Proof of payment. Bank statement, PayPal receipt, credit card statement showing the charge.
  • All communication. Every email, message, text, or platform message between you and the seller. Even if it just shows them going silent.
  • Tracking information. If the seller claims it shipped, get the full tracking history showing it never moved or never arrived.
  • Photos of what you received. If you got a counterfeit or wrong item, photograph it next to something for scale, and next to the original listing on your screen if possible.
  • Platform dispute records. Screenshots of any disputes you filed and how they were resolved.

Organize this into a simple folder, either physical or digital. You will reference it constantly from here on.

Report the Scam First (It Helps Your Case)

Before or while you're preparing to file, report the scam to the relevant agencies. This isn't just altruistic, it creates official records that can support your case and shows a judge you took the right steps.

  • FTC (Federal Trade Commission): reportfraud.ftc.gov
  • IC3 (FBI Internet Crime Complaint Center): ic3.gov, especially if the fraud was significant or crossed state lines
  • Your state Attorney General: Most have a consumer fraud division and an online complaint form
  • The platform itself: Report the seller's account for fraud, not just the transaction dispute

These reports don't guarantee anything, and the agencies rarely pursue individual small cases. But they add legitimacy to your claim and feed into larger enforcement actions that eventually catch serial scammers.

Filing in Small Claims Court to Sue an Online Seller Scam

If the demand letter doesn't work, it's time to file. Here's the practical breakdown.

Which Court Do You File In?

Generally, you file in the court where you live, not where the seller is. Consumer protection laws in most states let you sue a seller in your local small claims court even if they're in another state. This is a huge advantage. You file locally, and the seller has to deal with the inconvenience of your jurisdiction.

Small claims limits vary by state, typically ranging from $2,500 to $25,000. Look up your state's limit before assuming your claim qualifies. If your loss is above the limit, you may need to decide whether to cap your claim or consider a different court.

Serving an Out-of-State Seller

Serving an out-of-state defendant is trickier but doable. Many states allow service by certified mail to the defendant's address. If the seller is a business, you can often serve their registered agent instead, which is much easier to locate and makes service virtually bulletproof.

The court clerk's office will tell you exactly how service must be done in your state. Ask them directly. They're usually helpful with this.

What to Expect at the Hearing

Small claims hearings are informal by design. No lawyers required. You show up, present your evidence, tell the judge what happened, and answer questions. The seller (if they even show up, which many online scammers don't) presents their side. The judge usually rules the same day.

If the seller doesn't show, you typically win by default. Then you still have to collect, which is a separate process, but a judgment in your name is a real legal tool.

Be Realistic About What You're Getting Into

Small claims court is low cost and designed for regular people. Filing fees run $30 to $100 in most states. That said, there are limits to what makes sense to pursue.

If you lost $40, pursuing the case through court will cost you more in time than you'd ever recover. If you lost $400 or more, the math starts to work in your favor, especially in states where you can recover court costs from the other party if you win.

Collecting a judgment is also not automatic. If the seller has no assets, or if they're overseas, collecting can be nearly impossible. Go in with eyes open. The goal is to make them accountable, and often the demand letter alone gets that done.

One Tool That Makes This Easier

If you want to skip the back-and-forth of drafting a formal demand letter from scratch, PettyLawsuit sends professionally formatted demand letters via certified mail for $29. Letters go out instantly. They've handled 2,500+ cases, and 70% of them settle at the demand letter stage, before court is even necessary. If you'd rather spend your energy on collecting evidence than formatting legal language, it's worth a look.

Frequently Asked Questions

Can I sue an online seller in small claims court if they live in another state?

Yes, in most cases. Most states allow you to file in your local small claims court for consumer transactions, even when the seller is out of state. You'll need to serve them properly, usually by certified mail to their address or their registered agent if they're a business. Check your state's small claims rules for the exact requirements.

What if I can't find the seller's real name or address?

Start with what the platform has. eBay, Amazon, and Etsy all have legal processes for releasing seller information when there's a legitimate legal dispute. You can also try WHOIS domain lookups, state business registrations, and shipping label return addresses. Once you've filed a case, courts can subpoena the platform for seller information if needed.

Do I need a lawyer to sue an online seller in small claims court?

No. Small claims court is specifically designed for people to represent themselves. In fact, some states don't allow lawyers in small claims hearings at all. You'll present your own evidence and tell the judge what happened. Bring organized documentation and speak clearly. That's really it.

What happens if the seller doesn't show up to court?

If the seller was properly served and doesn't appear, the judge will typically rule in your favor by default. You'll receive a default judgment for the amount you claimed. You'll then need to take steps to collect, which might mean garnishing a bank account or placing a lien on property, but a judgment is a real legal tool that can follow them.

Is it worth suing over a small amount like $50 or $100?

Probably not through court, but a demand letter is still worth sending. A formal certified mail demand letter costs very little and resolves a surprising number of disputes on its own. For amounts under $200, start with a demand letter and see if that's enough to get your money back. Court makes more financial sense once you're in the $300+ range, especially if your state allows you to recover filing fees from the defendant when you win.