posted on July 14, 2004 05:31:38 AM new
I normally do a pretty good job of packing breakables. The clerk at the post office made note of this since I rarely have to file any claims. He suggested that I "self-insure". Is this legal? Does anybody else out there do this?
Carpe Diem ... Seize the day!
posted on July 14, 2004 05:52:53 AM new
I won't self-insure. I can't afford to lose money. Why would you want to? We had a thread here not too long ago and it appeared (I say appeared becaused we never heard from the seller) that the seller self-insured. That seller lost tons of money on the gamble.
The buyer pays the insurance, so I say let someone else take the hit. I package very well also, but once it leaves my home I have no control over USPS. I'm not paying for something I'm not responsible for breaking. It doesn't surprise me that the postal worker suggested it. I wonder if the individual stations are penalized for any insurance claims generating from something shipped from their station? Just a thought.
posted on July 14, 2004 05:55:29 AM new
I wouldn't do it unless you can afford to eat the price of the item if it's lost or damaged. Also, when buyers pay for insurance I think they like to see the "insured" stamp on the package and can get a bit testy if it isn't there.
Legal? Don't know about that but it seems to me that if you offer insurance, the buyer pays for it and you don't purchase it then you are accepting funds for a service you're not providing.
You could always put in your auctions that you self insure. However, if you do that be prepared to file for bankruptcy because you'll be inundated with claims from every wacko out there in ebayland.
Hope this helps!!
This isn't ebay related but I thought it was funny:
A friend of mine upon returning to his home in Canada after a trip to Las Vegas was asked by customs if he had anything to declare. He responded with "Yeah, BANKRUPTCY!!"
posted on July 14, 2004 06:12:50 AM new
LOL, capolady. Customs must have gotten a huge laugh. Ok, to keep this eBay related so that I don't get turned in and kicked off - was he on an eBay buying trip? LOL!
posted on July 14, 2004 06:43:00 AM newAlso, when buyers pay for insurance I think they like to see the "insured" stamp on the package and can get a bit testy if it isn't there
I think that is very true. Somebody suggested to me you can buy one, though? And ya, if you self-insure there's no threat of doing anything illegal like the post office or other insurers offer. Wide open for loss, imo, too.
posted on July 15, 2004 08:52:29 AM new
I think you should try it as an experiment. You will probably come out way ahead (the PO makes a profit on it, right).
Calculate the total ins. cost the PO charges for 100 packages. Then figure out how many claims you get in 100 mailings. You will be amazed at how much money you would put in your pocket if you self-insure. This is what I did.
Don't be swayed by the folks here who say you will be inundated with claims. The vast majority of ebayers are honest.
You will have to be very clear in your listings about what you are doing, to keep some bidders from thinking they should expect an insurance stamp on their package.
posted on July 15, 2004 09:06:57 AM new
I agree with parts of both views presented here. Dishonest buyers will take advantage any way they can try to figure out, whether you are self-insuring or not.
I self insure on cheaper sales or don't bother offering it on those sales. I always insure through the shipper if I can't easily absorb the loss of a higher priced item.
Buyers assume that if you sell them insurance, you are paying the shipper to provide it. If you are self-insuring, it's a good idea to state so, as most buyers will deem you dishonest if they find out later thay paid for it, but you did not pay the shipper for it.
Neroter,
The meanings in these two sentences were not clear to me. I bolded the part that is confusing. Could you elaborate?
"Somebody suggested to me you can buy one, though? And ya, if you self-insure there's no threat of doing anything illegal like the post office or other insurers offer..."
posted on July 15, 2004 10:48:58 AM new
meadowlark, when I was using IPIC insurance and other online there was no stamp to go on the package to prove it was insured.
Someone suggested to me to buy a an ink pad and stamper.
the other part of the bold: if you self-insure you can threaten with legal action if you suspect fraud...but there's no governmental agency doing it on your behalf such as the U-nited States Postal service
posted on July 15, 2004 10:55:44 AM new
i used UPIC and i will tell them their package has been insured with UPIC and i will give them the UPIC number.
Sometimes i even write the UPIC number and insured amount by the postage stamp.
But UPIC has been slow in processing claims.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
posted on July 15, 2004 11:29:31 AM new
Oh, and one other aspect of self-insurance that no one ever mentions:
You don't have to reimburse the buyer cash, generally. Often they will be happy with a replacement item if you have it, and (listen to this very carefully):
You get to provide the replacement item at YOUR cost, not the final bid amount the buyer pays.
Neat, huh?
If you're paying USPS for insurance, might as well flush the money down the john. It's a shorter trip.
posted on July 15, 2004 11:54:54 AM new
I have self insured items under $10.00 for years. I don't think I have 2 losses in 5 years. I sold some photo filters last weekm 3 sets went @$2.95 each. Makes no sense to spend $1.30 on an item this inexpensive. Of course I insure the expnsive items & every thing I ship by FedEx is autmatically insured up to $100.00. When a customer pays for insurance, it really doesn't matter who does the insuring as long as you are honest & pay off on a claim. I insist that the item & packing are returned to me before I will pay a claim/
Life Is Too Short To Drink Bad Wine
[ edited by sanmar on Jul 15, 2004 11:58 AM ]
[ edited by sanmar on Jul 15, 2004 12:00 PM ]
posted on July 15, 2004 12:37:03 PM new
some items are hard to replace,some are too costly to replace(say if it is an imported item).
if you regulary sell expensive items,it is better to have third party insurance.
One word for USPS,its checks do not bounce.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
