The primary purpose of an escrow for a product purchase is to have a trusted, neutral stakeholder (Mdoreh Escrow Service) hold the funds of the buyer until the product is being delivered to the buyer who then ascertains if the product suits the demand mostly after assessment. The product purchase escrow is mainly used when both transaction partners do not reside in the same location or country.
Our duties on a product escrow include; following the instructions given by the principals and parties to the transaction in a timely manner; handling the funds in accordance with the instruction; closing the escrow only when all terms funds in accordance with instructions provided.
Why do you need an Escrow?
Whether you are the buyer, seller, lender or borrower, you want the assurance that no funds or property will change hands until ALL of the instructions in the transaction have been followed. We have the obligation to safeguard the funds and/or documents while they are in our possession, and to disburse funds and/or convey title only when all provisions of the escrow have been complied with.
When you are dealing with someone you do not know, you also need an escrow like Mdoreh to validate the documents and identity of both transaction partners in-order to make dealings safe to both the buyer and the seller.
The challenge of Product Escrow
The major challenge of the product escrow is rejection after being used or accessed. Products like Software can be installed on buyers computer system and returned with a stated reason to the seller. We have not been able to curb this practice but we are working on a solution to this problem.
Some other products can be delivered and the buyer just takes a sample of them for showcase and then returns it later hereby cancelling the escrow transaction.
We have narrowed our product escrows to some specific products that won’t be affected by the above samples.
How does Mdoreh handle Product Escrow
Product Escrow follows the 3 S.E.P.
When a product escrow is initiated, the buyer of the product is mandated to transfer the funds involved to Mdoreh.com. When this transaction is confirmed, the seller is then instructed to ship the product to the buyer for inspection and confirmation. This process may take a while depending on the difference in the location of both transacting partners.
After inspection and acceptation of the product by the buyer, the funds received will be transferred to the seller with any method of payment stated in the escrow conversation. In cases where the product is not accepted by the buyer, the product is shipped back to the seller who then inspects the product for originality and compromise and the fund reversed to the buyer.