posted on May 25, 2001 03:16:22 AM
I was wondering if any of you use "self-insurance" instead of paying the $1.10 at the Post Office?
Is it "ethical" to give the customer the option of Insurance for $1.10 (same as the PO), but NOT pay for it at the PO? If the customer has a problem with the item's shipped condition, they could ship it back to me and I would issue a complete refund (including shipping charges, which is better than the PO Does?)
I HATE dealing with the PO if anything goes wrong, and they're SO nit-picky before they actually give you money back for a damaged item. Plus, they never refund shipping costs (which I think is ridiculous). And, sometimes they only want to refund MY cost of the item, instead of the money the BUYER paid for the item, which gets really confusing...
I've only had half a dozen items in the entire time I've been shipping have a problem upon arrival, and each time has been a royal pain to get things refunded through the PO (each individual postal employee seems to want to handle it differently around here).
I wouldn't say the insurance is through the PO in my "ad"... but is it ethical, since I'd essentially make an extra $1.10 on each item until one showed up damaged?
Any experiences on this?
I would still us the PO insurance on items over $100, probably... since this requires the person to sign for it...
posted on May 25, 2001 04:47:14 AM
Please do not try to charge if your self-insuring. The customer does check the postage on the package most of the time and if it doesn't reflect the $1.10, they'll feel ripped off and that's called gouging and ebay doesn't permit it. You can't make money on postage or insurance. Very unethical. Would you want it done to you?
If you want to self-insure, that's fine. Just refund when it's necessary without a hassle.
Of course, you always run the risk of people saying they didn't get a package when they did. In that case the post office would have been my choice because they would have to sign a federal form stating they didn't get it before a refund is issued. If you self-insure you have no proof.
Also, you said the post office wants to pay you your cost? Why? If you declare the final bid on the auction page, that's what they pay minus shipping. Even if it costs you $1. and the final bid is $300, that's what they pay.
You do have to have a print out of the auction page though showing the final bid.
$1.10 is for the first $50 btw, not the first $100.
posted on May 25, 2001 05:48:26 AM
There was quite a long thread awhile back where the poster bragged about how he charged everyone for USPS insurance, yet pocketed the money. Myself included, most people thought it was unethical to make buyers believe they were getting "official" insurance. Also, later in the thread someone pointed out that advertising insurance in the auction and pocketing the money was also illegal if the seller wasn't actually licensed to sell insurance.
Do you have a high incidence of customers claiming loss or damage? I'm wondering what is making you consider such a move.
posted on May 25, 2001 06:01:48 AM
MTNMAMA
You are sooo right.Self insurance brought me my first neg.I had several of one item so I figured I would self insure.If it got lost, or broken I would replace it.It was only a $5.00 item.Anyway one customer saw that the package didnt have the insured stamp on it,and wanted a refund.I had a thank you note in the box, and also explaned that this item was self insured.They didnt care,They felt ripped off.I would of never self insured it if I didnt have another to replace it.I had one item that got smashed in shipping.It was insured. Instead of going through the post office I just replaced it.figured it wasnt worth the hassle, Again only a 5.00 item.You never know who you are dealing with.Now I offer insurance, and if the buyer declines,and the item gets lost or damaged Its their problem.
posted on May 25, 2001 06:16:01 AM
Just the facts, for those who prefer facts to urban legends on postal insurance.
The post office will refund postage if the package is lost. It will not if it arrives damaged.
The ebay final auction price is not always the "fair market value" of the item, sometimes it is more, and the post office can reduce the amount of compensation to the items "fair market value."
It is up to you to point out the applicable regulation (and number!) to the postal clerk if they are in error when handling claims. This is a catch 22 in the postal regulations. As you know, you play postal roulette every time you deal with another clerk at the window.
Personal tip: avoid large city post offices. I hate going to the Quincy, MA post office since they have an attitude problem brought about by an anal-retentive postmaster who has bred paranoia into his staff and loves to disrespect his customers who question his often erronious decisions. I prefer some of the smaller ones where people are actually nice.
It is illegal in most states to offer insurance unless you are a registered insurance company.
posted on May 25, 2001 06:22:48 AM
I'm talking about claims under $50. Over $50, you may be quite right, fair market value may be the only thing they pay. Of course, if it's over $50 they send the claim to St. Louis to process and that may be why it takes 3-6 months to get paid.
As far as charging for self-insuring, I don't care how many times you write notes or how little the item costs, you cannot charge for it. I hope a refund was given.
If the buyer declines insurance and it gets lost, the post office will give it a cursory tracer after 30 days. Mail order regulations states you are only responsible for delivering it to the common carrier. But, if that's it for you, be prepared for an onslaught of negatives!
~Des