posted on December 11, 2000 08:19:54 PM new
I really think we pack pretty good, no breakage this year up until this month that is. I sit here with hundreds of dollars worth of postal insurance receipts and it's a hassle to get $15 out of them when the recipient even says the priority box was mashed in.
I know some of you self insure and I wonder if that isn't better if you are doing a good percentage of low cost items. Would some of your buyers take advantage of that fact to complain about nonexistent breakage or nondelivery? Do you still charge for insurance?
How about the rate increases? Has anybody found that that might make it better to use UPS or FedEx. Are they a little better on handling the packages?
posted on December 11, 2000 08:31:23 PM new
I just don't know what to do anymore either, with the insurance you have to fight for and now the postage increase.
I'm glad you started this thread. I'm really interested in what folks have to say on this topic.
posted on December 11, 2000 08:52:30 PM new
You might consider UPIC instead of postal insurance- their rate is only $0.40 for $100 coverage. They insure the entire total (item value + postage) and accept an eBay auction listing as proof of value.
I have not had occasion to file a claim yet, but the posts I've read from those who have indicate that it is relatively fast and painless.
posted on December 11, 2000 09:24:47 PM new
I sell mostly low-end items and don't insure them. My rule of thumb is insure items over $25. If something were to happen to a low end item (it's happened only a couple of times), I can afford to eat that.
For the over $25 items that I do insure I use U-Pic. Quick, Simple, and Cheap. And... I've had one claim with them that was handled quickly, efficiently, painlessly. My rates did not even go up, although there is some criteria where larger claims could cause your premium to go up.
I never charge the customer for insurance, and often they never even know their item was insured! I look at it as protection and peace of mind for me, not them.
I almost had a 2nd claim... even started the process with U-Pic, but the box was returned to me (by U.K. customs) after 5 months! We never figured out why it was returned. I re-shipped the next day and my happy customer had his item in 4 days!
posted on December 11, 2000 10:21:58 PM new
I switched to u-pic several months ago. I never had a claim until last month. I found it very easy to do. I do a spread sheet, email it weekly, and find it takes less time to puch the minimal info in that they ask for, than to fill out the slips for the USPS. I don't ever want to go back to that. GEEEEE am I spoiled? I love offering my customers 40 cents insurance per $100, and have even insured some that didn't pay, just because it was a little safer and I wanted too. With the higher USPS insurance rates, this is a wonderful deal to me.
posted on December 11, 2000 10:34:05 PM new
Hi Deco100:
My first AuctionWatch post! Long time lurker though.
New to AuctionWatch, but not new to ebaY. 3.5 years selling experience.
I understand how you feel regarding insurance. In the beginning we used USPS insurance, then switched to Upic for a year. Our breakage ratio was/is very low, and no items have been "lost." Considering those facts, I wondered about self insuring.
I know lots of people believe that profit should not come from shipping or insurance - but why not? Today, sellers need to secure profit from all possible sources. Not just in the item value itself.
First let me say that is illegal to "self insure." That is, if you "charge" for insurance and do not purchase it from a licensed broker, i.e. USPS, UPic, etc., it is not legal. Why? Because you need to be a licensed and regulated insurance agency to sell insurance.
This is what we did, perhaps it would work in your situation:
Purchase a "dealer" antique and collectibles policy. The one we have covers our stock, personal collection, NSF checks, travel, AND items shipped [damage and lost articles]. The cost is very low, we pay approx. $125 per YEAR.
Now, if you purchase a dealer insurance policy, and have lots of breakage/loss. Your policy will most likely be canceled quickly! Soooo, use the policy as "legal back-up." Don't put in more than a few claims, if any. Basically you are "Self insuring" with a policy backing you. If you are ever questioned, show the policy as proof of insurance - which it is...
Does this open you up to consumer fraud? You bet it does. However, there are steps you can take to minimize any potential loss - and end up with a profit.
Set a [$] limit as to the amount you are willing to "self insure." Any items that are over that amount, you have two alternatives. 1. If the item is not fragile, use Delivery Confirmation; consequently, fraudulent customers would not be able to claim non-delivery. 2. If the item is fragile and you don't feel comfortable "self insuring" use postal insurance on it.
Definitely, purchase an "INSURED" stamp. Order a professional looking one with a border around the letters. DO NOT try to imitate the OVAL USPS "insured" stamp. This could cause your package to be returned to you due to insufficient postage. We use a rectangular one, and it has been approved by a USPS Postmaster. No package has ever been returned to us postage due because of this stamp.
In the event of breakage or loss. Use a professional claim form. Model it after the USPS forms or other. Clearly state the ramifications for filing a false insurance claim... Send it to the customer, have them sign it and return it, BEFORE you pay the claim [use a SASE for their convenience]. Keep a data base of any claims you have paid. Should that person buy from you in the future, use postal insurance.
I would like to add that we state the following on our policy web site and end of auction invoices: "Seller reserves the right to choose insurance carrier. USPS, UPS, or other commercial. We do not self insure." [Which technically we do not]. Never has a customer questioned it. Nobody has ever said "I request postal insurance rather than another commercial carrier."
What's left? I know I'm probably going to forget something!
We base our rates on USPS insurance rates - we have a raise coming! We have perhaps paid four or five claims since "self insuring." The profit has been $1500-2000 per year after losses. Oh, I did use the "dealer" policy to collect on a couple of NSF checks...
posted on December 11, 2000 10:42:17 PM new
I just read up a few posts. I know I'm gonna get it from the folks that pass along insurance savings to customers.
posted on December 12, 2000 10:04:33 PM new
1. as others have pointed out, it's absurd to pay USPS insurance on lower valued items. Everyone gets to figure out the line for themself, and it varies depending on the type of merchandise.
2. "offering insurance" is usually an expression of ignorance. Seller is responsible to deliver the stuff to buyer, in the described condition, even when buyer declines any such offers, unless buyer agrees. Most buyers don't agree. I know I don't.
3. "self insurance is illegal unless you're licensed" is nonsense. What's illegal is selling insurance to someone else while not holding the proper license. By definition, you sell self insurance only to yourself, perfectly legal in all situations.
4. By far the easiest way to cover self insured shipping is the quoted shipping rate. "$5 for Priority shipping". You know you've allocted $3.20 for postage and $1.00 for self-insurance and $.80 for materials and transportation, but you have absolutely no obligation to explain it that way. Buyers like it too. "$15 for insured Priority shipping" is a promise to buy USPS insurance, but not for any particular amount.
posted on December 12, 2000 10:52:30 PM new
Would someone please explain to me why people keep saying that U-pick is cheap, "only 40 cents" I have insured probably 40 packages through them, and the lowest I paid for the service was $1.25. I know the over and above is what I Back Charges me per transaction on my card, but bottom line is..I am still out $1.25. Is there something I don't know about?
Bygrace
posted on December 12, 2000 10:59:25 PM new
We have had about 3,000 sales on ebay over the past 3 years and have had 1 lost parcel and perhaps 10 things broken in total (although we don't normally deal in breakable items).
We usually carry the insure unless it is very breakable or valuable - when you add it up its not worth paying someone else to make money off of the probability that an item will arrive in the same condition that it was sent. We have paid out maybe $50.00 in 3 years for damaged or lost items (the lost item was worth $17.00).
We don't bother charging insurance, but if a buyer insists that an item be insured, we charge them and pocket the change if its a small item, or purchase insurance if its an expensive item. We only insist on third-party insurance coverage for expensive or obviously breakable items.
