I recently purchased a site off of a very popular website broker, the site's operation is simple, it dropships items to buyers. The site cost was roughly 5k
Here's my situation. Once the "keys" were handed over and domain was transferred I found two glaring issues with the website as a business that was not disclosed/dishonestly described.
1. My reachout to the supplier base revealed they no longer will do business with this website. I immediately scrambled and found another supplier, minor heartburn, but i recovered. I was irked about this, but since I found a supplier I let it slide. See #2 below...
2. I started to go through the previous owner's backlog of "fulfilled" orders and emails and have found out the previous buyer for months had been taking customer payments and not fulfilling orders. There are customers threatening legal action, chargebacks to their account being filed against the previous owner and website along with plenty of bad feedback to make me question the "branding" that I was sold. The negative feedback was all "myseriously" deleted from the site and facebook.
I purchased this site via paypal, and rightly or wrongly filed a claim against this person for falsifying the sale. I dont think the seller is an evil person, in fact I theorize they let the website run on autopilot while the supplier base stopped fulfilling orders while collecting payments. However this does not excuse them from keeping people's money.
Now my question is...Am I completely in the wrong for filing a claim? I see so many buyer side scams, I consider myself a pretty moral person, but I really feel wronged in this transaction. Secondly, the domain was transferred, will Paypal just say "tough luck you own the site its your problem."?
I'm completely willing to transfer everything back to this person including the domain. To further complicate everything the website is making sales since I purchased it that I am fulfilling.
Does anyone here have any experience or can give me their opinion on what they think is the right thing to do?