posted on August 27, 2001 10:32:46 AM
I've only been selling since April and would like the opinions of those with more experience under their belts.
My average sale is around $20. I've handled about 300 transactions, mostly through the post office with no lost, no broken, 1 late (3 weeks). Overall, a very good track record I feel.
Before that one late package arrived, I attempted to file a "lost" claim and found:
You must wait 30 days to file a lost package claim. This is very frustrating for the customer who is out both their money and item until the waiting period is up and proper hoops have been jumped through. Often they "need it yesterday!". It is also frustrating for me as I have an unhappy customer and I usually have another on hand and could easily replace the lost item for my cost.
I've begun personally insuring my packages. I charge a buck for insurance and let them know I will be responsible and why.
It would seem the odds are in my favor that even with refunding or replacing an occasional shipment I shouldn't lose money.
What does everyone think? I couldn't find any threads from people who are already doing this. Will I be prosecuted for selling insurance without a license?
posted on August 27, 2001 10:40:03 AM
I've been selling for over 2 years and wouldn't even consider this option. I personally believe that if you tell your customers that you "self-insure" that you'll dramatically increase your claims and I think you'll find all the dishonest ebayers flocking to your auctions. I don't know about the "legality" here, but a 10 minute phone call to your attorney will clear that up.
I'd use http://www.u-pic.com/ I've been told that they pay their claims, their prices are cheaper than USPS and the requirements aren't THAT bad.
I try to keep in mind three things, first, I sell PRODUCTS, second, I'm not a BANK, and third, (I guess) I'm not an insurance company either.
I've never actually been through a USPS claim. Tell my why it is that you think dishonest eBayers would be more likely to defraud me rather than the USPS?
It's my thought that the USPS would not be selling insurance for $1.10 if their claims exceeded their revenues.
You're right, I sell products first. The only reason I'd consider self-insuring is to
provide better customer service. USPS is really a 3rd party to the transaction. I can resolve problems in a way USPS can't (replacement). And I'm certainly no bank, remember, we're talking about $20 average transactions.
I was actually joking about selling insurance without a license - but your replies got me thinking.
I called my attorney who said as long as I:
1. Inform people that I will be personally responsible
2. Take care of any claims that arise
I should never have a problem.
He referenced several large companies that don't carry outside insurance but self insure. It's a different venue but the same principal.
posted on August 27, 2001 12:16:36 PM
why are people concerned about the scammers appearing in droves if you proclaim "self insurance"? Well, not sure if you've followed the USPS process to the end, but there is official paperwork that the buyer has to fill out, saying they never got the item. For a $20 item, even the worst thieves might think twice before lying to the feds.
However, you are a "sitting duck"...if they claim its lost, what are you going to do? And even if you find out they lied, how do you sue them?
I've had two "lost" packages in several hundred, both mysteriously arrived after being asked to fill out the USPS paperwork.
In general, I, too, "self insure" my low costs shipments, because USPS isn't cost effective. I don't advertise it, if there is a problem, then we start the discussion.
Be aware that some people will also be upset if you charge a buck for "insurance" and there is no evidence of insurance on the package itself. Describing "self insurance" to angry buyers doesn't work well.
Check out upic as a better alternative than the USPS, or just set yourself up for "guaranteed delivery"...
[ edited by captainkirk on Aug 27, 2001 12:17 PM ]
posted on August 27, 2001 01:14:23 PM
I do what captainkirk does. If the item is over $50, I quote, in the auction listing, the price of shipping with insurance included. I require insurance on items over $50. Under $50 items usually fall in the lower end of the spectrum, so I self insure but don't advertise such. I just quote the price of USPS priority shipping. I've been selling for 4 years and have never had a problem using only USPS shipping. I've shipped nearly 2000 packages. No broken, no lost, no lates. (I suppose my time is coming)
posted on August 27, 2001 02:36:31 PM
In the last two years I must have shipped 1000 packages. I sell in the $50-$100 range, 1 lb packages mostly. I ship usps priority and using endicia I get free delivery confirmation. The only package ever lost was going overseas. No damaged packages. 100% of the packages I checked for delivery showed as scanned. I print my labels in the office and drop the packages in the mailbox. I offer my clients optional insurance and tell them why I dont believe it's necessary. I also explain that I dont actually buy insurance but I guarantee a replacement should it get lost, which means that USPS shows it as undelivered. If it shows as delivered, I am not responsible. I have never had a complaint of a lost package. Some took a few extra days to show up but they all got there safely. On expensive items I will insure or choose signature confirmation.
posted on August 27, 2001 02:47:01 PM
"I've never actually been through a USPS claim. Tell my why it is that you think dishonest eBayers would be more likely to defraud me rather than the USPS? "
There is a disclaimer on the postal form that says "Under penalty of perjury". That scares some people. Second, messing with the mail service in ANY form is a FEDERAL crime and the punishment for getting caught is STEEP. Can you do that? Nope, me neither.
Ask yourself this: "How will you PROVE that the buyer is telling you the truth and really did not get the item?" Truth is you CAN'T. I CAN'T. The USPS CAN'T. The difference? USPS is selling "insurance" all over the country, millions every day, probably. They can afford the 2% who lie, cheat and steal, and they have the FEDERAL Gov't behind them when the catch the rare theif. You don't. The crook knows this.
Use UPIC. It's just not worth the few bucks you think you're going to pocket. I'll bet even money that if you do this for a YEAR, you'll be behind. Especially if you advertise this in your auctions.
As for USPS claims, I've had 3 in 2500+ transactions. All three signed the form, wanted another item, and my PO paid me cash on the spot (under $50 each). Yep, it took 3 months in one case, but not my fault. The idiot who left me neg fb over it, really SOUNDED like a complaining moron. No harm, no foul....
posted on August 27, 2001 03:37:59 PM
I've self insured a few times and no, I don't advertise it. But I let people know when I ship so they don't get upset when their package arrives without the "insured" stamp. (I had one complain on my feedback even with the my explanation.)
I'd be nice to come out ahead, but that's not my motivation. I just want to keep things simple and give good customer service.
I think I will try self-insure for under $50 and use USPS for the rest. I'll add a column to my spreadsheet, so I'll know if I go in the hole.
If it doesn't work, I'll quit doing it. One or two $20 hits isn't going to send me to the poorhouse.
posted on August 27, 2001 04:24:17 PM
Is insurance really necessary, if you don't ship breakables?
Each package you ship has less than a 1/1000 chance of getting lost. The odds are pretty good that a package will make it from point a to point b.
We usually recommend the buyer insure the package if the item is valueable but don't bother with the rest. I don't see the point in insuring a $15 item.
