Hi, Ryan from FOBO here. There's actually an advantage inherent to local selling in that you're able to inspect the item before the seller is paid (when you confirm that you've received the item in the app, transferring payment to the seller).
1) Buyer does not acknowledge receipt 2) Buyer does a credit card chargeback
Does the seller bear risk in these cases? If yes, why? If not, then that's great, but I find it hard to believe that your company will eat these losses since nobody else is willing to.
Still leaves room for products that appear to work but have some subtle flaw but this issue is still present with craigslist with local sales.
Exactly. This is inherent to any individual sale or exchange of used items. Unless explicitly stated otherwise, products are "as is" and sales are final.