Using escrow for watch deals

The core problem in a watch deal between strangers is that someone has to go first. If the buyer pays first, they risk never getting the watch. If the seller ships first, they risk never getting paid. Escrow solves that by putting a neutral party in the middle, which holds the money until the watch has arrived and the buyer is satisfied.

How escrow works

Escrow.com describes the process for general merchandise: the buyer sends the agreed payment to the escrow service, which then tells the seller to ship. The service tracks the shipment, starts an inspection period once the buyer receives it, and releases the money to the seller only after the buyer has received and approved the item.^[1]

In practice, the steps are:

1. Agree the terms, including price, the inspection period, who pays the fee, and what happens if the buyer rejects the watch.
2. The buyer pays the escrow service.
3. The seller ships, once the service confirms the funds are held.
4. The buyer inspects within the agreed period.
5. The buyer accepts, and the seller is paid. Or the buyer rejects, and the terms for returning the watch apply.

The inspection period

The inspection period is the heart of the deal, so agree it clearly. The buyer needs enough time to check the watch properly, perhaps with their watchmaker. The seller needs the period to be finite, so their money isn't tied up indefinitely.

Agree in advance what the buyer is checking for, and what happens if they reject the watch: who pays return shipping, and how it's insured on the way back. A buyer who rejects a watch for a reason outside the agreed terms is a dispute you want to have settled on paper before it starts.

The fee

Escrow services charge for holding the money. Escrow.com's fees are tiered by transaction size, falling as a percentage as the amount rises, and the fee can be paid by the buyer, the seller, or split between them as agreed.^[2] Paying by card or PayPal through the service adds a further charge and is only offered on smaller transactions.^[2] Check the current fees for the amount you're dealing in before you agree who pays.

For a dealer, the fee is a cost of the sale or purchase, like any other. Include it when you price, using the max buy calculator's processing field.

Spotting a fake escrow site

Fake escrow sites are a known scam, and Escrow.com itself warns users about them.^[1] They look like real services but exist only to take the buyer's money, or to convince a seller that funds are held when they aren't.

• Go to the escrow service yourself, typing the address you know, never through a link from the other party.
• Be wary of unfamiliar services suggested by the other side, especially if they insist on one you've never heard of.
• Confirm funds in your own account on the real service's site, not from an email saying payment is secured.
• Treat pressure as a warning. A counterparty who objects to you checking the service independently is telling you something.

When escrow is worth it

Escrow makes most sense for higher-value deals between people who don't know each other, and for shipped transactions where the buyer can't inspect the watch first. It's less necessary with trusted trade partners, or for an in-person sale where the buyer sees the watch and pays on the spot.

Some marketplaces build escrow-style protection into their checkout, as the Chrono24 buying article describes. For deals arranged on forums or social media, a standalone escrow service fills the same role. The payment article compares escrow with other methods.

Keep the record

Save the escrow terms, the shipment tracking, and the acceptance or rejection with the watch's record. If anything is questioned later, the escrow record shows exactly what was agreed and when each step happened.

Escrow matters most at a distance, which buying from overseas sellers covers.