posted on April 5, 2005 11:05:38 AM new
Here's a letter from AuctionBytes last week that caught my eye. Whaddaya think? It makes sense to me! If I bought something from Amazon or Overstock, I wouldn't be asked to purchase additional insurance. I think I'll start including it on all my auctions. Kind of CYA if you will.
Hi Ina,
I'm not sure if this will reach you, but just in case, I'm sending it anyway.
One of my biggest pet peeves about eBay sellers is that more and more are requiring the buyer to pay for insurance. Insurance should always be paid for by the SELLER, since it benefits the seller, not the buyer.
Mail law states that it is up to the seller (the person receiving money) to insure that the buyer receives the item purchased.
The law does not differentiate between a large company and an individual selling their kids outgrown clothes. If you take money for something, it is up to you to make sure the item gets to it's destination in a timely manner. If the item gets lost, it's up to the seller to either replace or refund the money. If the seller has purchased insurance, then they have the ability to submit a claim and get their stated value refunded. Then they are out nothing.
If no insurance is purchased by the buyer, what keeps the seller from not even sending the package and then claiming that it got lost?
Now, on eBay, some sellers have decided that the buyer should be the one to take responsibility for making sure the package arrives.
If they talk about insurance at all, they say that insurance should be paid for by the buyer. Some go so far as making insurance, paid for by the buyer, REQUIRED! And then how many times do the sellers actually BUY that insurance? So far, EACH AND EVERY TIME I've had to buy insurance, the package comes to me uninsured! They've kept that extra money as profit.
How about bringing this whole thing to light in a new article, letting BUYERS know that they no longer need to be held hostage to the insurance scam. No one should have to pay for insurance or get negative feedback for not wanting to pay for it.
Since the cost of the insurance is an expense that for businesses will be written off at the end of the year, it shouldn't be a problem paying for it, or just using UPS which includes insurance up to $100.
For individuals, they need to decide how much they are willing to give up in case the package gets lost. If they are willing to refund up to $25, then they need to insure all packages for items over $25.
Just to cover themselves. If they are not willing to do this, they should not sell on eBay or anywhere on line.
I have brought this up to eBay President Cobb, but I got a nice email back from him that pretty much said they were not going to do anything about it. So, the practice goes on and is getting more widespread.
Thanks for listening,
Ginny
posted on April 5, 2005 11:59:04 AM new
I agree it is quite a scam to pay for insurance, and not have it insured. I've heard people say that if you pay for insurance and there is none, that is illegal. I'd like to see that in writing from the USPS before I decide on that one. As a buyer (and I don't buy much these days on ebay) I usually won't bid in an auction where I am forced to buy insurance, esp. if it is an inexpensive item. I factor the mandatory insurance into the total shipping price and it usually does not make sense to buy online. As a seller, I got tired of the game of making insurance optional, but if something happened, the buyer always wanted to act as if they item was insured, though less than 1% actually took out insurance. I've contracted with DSI for a flat rate plan for everything I ship, and it comes out to about a quarter per package. I've had to adjust my shipping/handling price, but it is still reasonable compared to others who ship without that (and I use delivery confirmation too) - I make it very clear in my auctions that all packages are shipped with insurance, and DC for US addresses. I think it has helped, but I don't know for sure. Regardless, I don't have to really worry about it much these days. I am concerned about sellers who are very unreasonable with their shipping terms, because I know that it could mean people buying less on ebay. Count me in that crowd, and I am a silver power seller. Part of the reason is that I am pretty busy, but part of it is getting annoyed at a lot of the shipping games sellers play, I find it easier to just buy things other ways than ebay auctions.
posted on April 5, 2005 05:18:28 PM new
Methinks ye be over-stating the case for fraud --
My experience has been that if ya don't OFFER insurance, bidders scream
Conversely, iffen ya make it mandatory, bidders scream...
What Ralphie recommends is:
Offer it as an option, but insure (DSI) ALL packies, regardless of whether the bidder paid the optional insurance fee ...
"In terms of timetables, as quickly as possible—whatever that means."
—On ElmerW Fudd's time frame for shoring up Social Security, Washington D.C., March 16, 2005
posted on April 5, 2005 08:56:08 PM new
On packages I send via UPS, insurance is part of the deal. For items I send USPS, if the buyer does not buy the optional insurance, then it is their loss, not mine. Also, I do not illegally self insure. Those crooks should be turned into the postal inspector if they are collecting insurance money and not actually purchasing it.
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Alive in 2005
posted on April 5, 2005 09:47:42 PM new
I use DSI for insurance and its not marked on the package that insurance is on it but it is insured.
Just because its not marked it does not mean the seller did not put the insurance that the buyer paid for.
As for A seller paying the insurance I also agree with that because it's the seller who will be asked to return the money if the package does not arrive.
If a buyer does not pay for insurance I pay for it but it has been a standard feature on ebay that the buyer pays for insurance.
To have less problems I just include the insurance in the price of the item or add it to the shipping cost.
posted on April 5, 2005 10:05:29 PM new
<<Mail law states that it is up to the seller (the person receiving money) to insure that the buyer receives the item purchased>>
ROFLOL...I just looked through the local yellow pages and can't find a single attorney who specializes in " Mail Law" Maybe they are only in the big cities, like Little Rock or Biloxi. The creativity of these arm chair attornies never ceases to amaze me. The bottom line is, it's YOUR money that was sent to purchase the item. If you don't trust the USPS 101% to get it to you, then it's the buyer's responsibility to purchase insurance. Just about all carriers (except for the postal service) accepts liability for items they accept for shipment and include the charge in their basic transportation rate. And there is no insurance company involved. It's a matter of the Postal Service operating under an exemption because they are a government agency that they are allowed to use the word "insurance".
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
posted on April 5, 2005 10:15:24 PM new
At post office,,,,,standing in,,,,,Another line, I HEARD the Whole conversation from the post office,,,,,6 weeks,,,,,,to determine if the T.v quailified for the INSURANCE and the Pot office WANTED the T.V.....(pot office, I am leaving it JUST like I said,,,) the customer, befuddled just decied it was NOT worth it and took it home,,,SCORE 1.! for the Post Office! They WON! that is THEIR insurance. Insurance YOU Will just GO AWAY! I bet it works millions of times!
