posted on April 5, 2002 03:14:05 PM new
I don't know if I originally read the idea here or not, but I was wondering what people think about this idea. I think it sounds like a good idea.
Offer insurance on your packages for the regular postal rate ($1.10?). Then send the package normally, with DC. If the package becomes lost, just replace it with a new one, or refund the money of the original one. This way, you keep the difference between DC and Insurance and insure the package yourself.
It seems to me that you would make more money off of this, never have to deal with the post office for insurance reasons, AND the transaction would move faster and smoother.
I am thinking that the 'evens out in the end' part of this would only work for heavy sellers or if you require insurance on every package.
posted on April 5, 2002 07:16:01 PM new
I certainly wouldn't advertise $1.10 for insurance and then send the package without the little insurance seal on it. You're just asking for major problems from buyers.
I offer insurance as an option for my buyers. Some take it, some don't. So far (fingers crossed here) I've never had a complaint.
The key to success though, I think, is to pack your items like you're sending them to yourself. Bulletproof.
posted on April 5, 2002 08:47:09 PM new
I wouldn't charge $1.10 for it, say it is insured (even if you self insure) and then send uninsured. I charge a total price for shipping (Say $2) and it may only cost me 80 cents to ship. I figure the extra $1.20 pays for the padded envelope, the toner on my printer, ebay and probably paypal charges, etc. I tend not to insure on packages under $40. However, I have given serious thought to ending that practice, and letting the buyer add insurance if they want and anything else I would state I was not responsible for. I haven't decided on that yet, but this past year I have had more lost packages than the previous 3 years. What are people's thoughts on that, what do you do?
posted on April 5, 2002 09:32:36 PM new
It is illegal to "self insure" and charge for it in many, if not all states. You need a license to sell insurance, period. It is OK to "self insure," if you do not specifically charge for it. For example: "shipping is $5.10 and we guarantee delivery to your door, including loss or damage." However, if you self insure you cannot say: "shipping is $4.00 plus $1.10 insurance."
The catch is, that fraudulent bidders may recognize what you are doing in the first
example, and perhaps take advantage of it with bogus claims. You can exclude "lost in the mail claims" by using the free USPS on-line DC. But you will still be stuck with unverifiable damage claims. Plus, it only takes O-N-E person to ask for proof of insurance after-the-fact; consequently, if you cannot give it, they might place a phone call to your State's insurance regulators. Are you prepared for that type of aggravation?
Another problem is that recipients of packages often look at the postage on the
box and compare it to what you charged them. Some will adamantly expect a refund
or damn good explanation for the perceived over-charge...
edited to add: I use PIC to insure parcels. Volume rates are not published and you can charge the going rate and keep a percentage for yourself. OR, offer lower cost insurance to bidders as an inticement to bid.
posted on April 5, 2002 09:42:11 PM new
I have to admit that I got REALLY hot under the collar one time when I purchased insurance and the box came without it. I'm certain that the seller decided to self insure, but it made me quite angry to think that I paid the P.O. rate and he just kept the money. Without the insurance stamp on there, it just looked like he forgot to purchase it and kept my money.
I have read the following suggestions on this board before, and any one of them would be a satisfactory solution.
1. If you quote the P.O. rate in your TOS, clearly state that you reserve the right to self insure.
2. Buy a rubber stamp at Office Depot that says "INSURED" and use red ink to stamp each box that you insure yourself. Not all buyers know what the "official" P.O. stamp looks like, and you probably won't get any negative comments about it.
3. Build the cost of insurance into your TOS (i.e. S/H/I will be $7.95) and use the stamp mentioned above on packages you self insure. By not quoting a separate rate, you don't build the expectation that you're actually purchasing it from the P.O. This works well when you send stuff UPS or Fed Ex where the first $100 is insured as part of the postage price.
posted on April 5, 2002 09:56:35 PM new
Many, MANY, sellers use PIC or other commercial insurance for parcels. The cost is not reflected in the postage ON THE BOX. Don't get too hot under the collar.
posted on April 5, 2002 09:58:13 PM new
FYI, PIC does not want an "insured" sticker or stamp on the box. It creates unwanted attention and perception of value.
posted on April 5, 2002 10:06:21 PM new
Morgantown, I should have said that I got "hot" about no visible insurance early in my eBay experience, when I was just a humble buyer and hadn't yet found this wonderful message board to instruct me on so many things! I have directed several eBay newbies here that I've dealt with, so I hope they've gotten as much good out of this board as I have.
BTW if PIC doesn't want an "insured" sticker on the box, perhaps the TOS should state that the insurance is through PIC (so the buyer doesn't have the expectation of seeing the P.O. sticker or stamp)......
Without eBay, I might have a real life...
[ edited by mcbrunnhilde on Apr 5, 2002 10:08 PM ]
posted on April 5, 2002 10:13:28 PM new
I do not put information about PIC in my TOS, or in the box, because it would open the FLOOD gates of fraud. Why? Because the alleged damaged parcels would not have to be taken to the PO, or anywhere else for inspection. PIC or other commercial rates are based upon seller/shipper claims history; consequently, high claims = higher rates. Plus, bidders don't need to know every teeny, tiny detail. If I'm questioned, I show proof via a copy of the policy. That cannot be done with self insurance.
