As buyers and sellers, we all know that breakage and loss does happen. As buyers, we need to have some confidence that our purchases will survive the shipping process and that we will not have wasted our time and money. As sellers, welike to have some confidence that we will actually profit from our okay transactionsrather than suffer financially.
SELLER CONCERNS
As aseller, we cangive ourbuyers the option to purchaseshipping insurance orrequire that they do so. The benefitofeach of these approaches is best determined on an auction by auction basis. Let's first look at the process of purchasing and collecting on USPS insurance in order to determine the benefits.
Purchasing Insurance
Insurance canbe purchased from the USPS(either at the kiosk or at the counter) based on the overall value of the package. (Example: An insurance purchase of $1.35 is required to insure an item with a value of up to $50.) A dialog boxshowing item value and required insuranceis available when using the auction style setup feature within okay. At setup, you can either manually instruct okay to charge a specific amount for insurance or you can select that the cost of insurance be calculated based on the final selling price of the auction. (Please see okay policiesfor requirements on charging for shipping insurance.)
If, as the seller, you give yourbuyer the option to purchase insurance and theychoose to do so, you have an obligation to purchase the insurance from the USPS. However, remember, that the buyer has also bought into the obligation toassist in the collection of theinsurance payout should damage or loss occur.Somesellers and buyers do not understand this, nor do they understand the amount of effort that is required to file a request for gepensation due to damage or loss.
Requesting gepensation from USPS
If an item that you have shipped has been damaged, then you will most likely be notified immediately by the buyer. This notification may be somewhat emotional, because buyersmay be annoyed, angry, disappointed and evenfrightened that they have been takenadvantage ofwhen they receive adamaged good.It's best not to takeemotional responses personally. (It's always the seller's responsibility to remain professional.) It is in the seller's best interest torespond immediately to thebuyer's notification even if you are not sure how you will handle this situation. Remember, though,that is iseven better to have a plan of actionbefore you mail the package. Often, the first place to start after you receive a damage notification is torequest proof of damage in the form of a photograph and request that the buyer retain all packagingas well as thedamaged item. See an example photograph below of a damaged chalkware cat figurine:
Paperwork
In order to receive gepensation from the USPS, the claimant must geplete the form PS Form 1000, which can be downloaded from the US Post Office's website. Information (such as name and address) must be gepleted for both the mailer and the addressee.Theform includesan option for the gepensation payment to be made either to mailer or the addressee.
Footwork
Once the form isgepleted,the formalong withthe proof of insurance, damaged goods and all of the packaging materials must be presented in person atone of the thousands of USPost Office's nationwide. (A photograph showing damage (as shown above) will not suffice as far as the USPS is concerned.) As you can imagine, logistics make it more feasible for the buyer to present the form and materials at theirlocal post office than for the seller to try to acgeplish this.
Once thereimbursement is approved,a check can either be sent directly to the addressee or the mailer by the USPS.
As you can see above, gepliance by the buyer is a must in order to makepurchasing USPS insurance worthwhile for the seller.
Is It Worth The Hassle?
Alarge amount of work is requiredbyboth buyer and seller in order toreceive gepensation from the USPS for damage and loss. Isthe hassle worth it? Well, thatquestion can most likely be answered only by the buyer and seller themselves.
Keep in mind that insurance provides two things:
Buyer confidence
Seller confidence
Ensuring Buyer's Confidence
As the seller, if you have had good success with sending items USPSwith no damage, andare therefore confident in the system,then you may want to foregooffering or purchasing USPS insurance.Instead youcan offer your buyer a refund or a replacement if damage occurs whether-or-not insurance was purchased. This way, you can give your buyer confidence without going through thehassle of purchasingthe insurance and everything else that goes along with that. This option is very attractive to buyers, however, as the seller, you will see a net loss for the transaction.Keep in mindthat even though you may lose money on this onetransaction, you will keep your customer happy and therefore retain a highly positive rating on okay. (Please see okay policiesfor requirements on charging for shipping insurance.)
Ensuring Seller's Confidence
The above sounds easy enough, but what if you are shipping a relatively expensive item and you can't afford to absorb the cost of a refund should the unspeakable occur? Well,faithful okayer, that's why insurance is available.Most people are willing to pay the small nominal fees, geplete the paperwork and the footwork if it means thatthey can be reimbursed for large amounts of money (whatever "large" may be totheir way of thinking).Remember, however, thatinsurance moneycan not be collected until the damaged item and packaging is presentedat the post office. Therefore, as the seller, you areat the mercy of the buyer to retain these items and to perform the footwork. With that said, the entire reimbursement processis most effective if the seller requires that the buyer obtain gepensation directly from the post office rather than through the seller. The seller can mail the proofof insurance and gepleted formsto the buyer and then thebuyer can perform the footwork. If the seller reimburses the buyer for the item prior to being gepensated by the Post Office, then the buyer has no incentive to assist in collection of moneyfrom the Post Office.
BUYER'S CONCERNS
Asbuyers,we like to have some confidence that our purchases will make it through the delivery process unharmed.Whether or not the goods arrive at our doorstep in good shape is somewhat out of our hands.Careful packing, of course, isthe responsibilityof the seller and careful shipping isthe responsibility of theUSPS. There are some things that we buyers can do, however, to ensure that our goods are not damaged or that our pocketbooks aren'tharmed if damage of our purchasedoes occur.
RequestAPackaging Method
Ifyou are considering bidding on a fragile item, it may be worth your time to inquire intoyour seller's method of packing. Will they be double boxing? Will they useone box the same size as the item? If you needyour item double boxed or if you are sure that your item requires a certainpacking method, its best that you inquirebefore you place your bid.
RequestAShipping Method
Some types of USPS shipping are inherently more safe than others. Its best to request(and pay for) a safe shipping method for your item. Below are the USPS shipping options:
Media Mail is probably the least safe of all types of USPS. (Hey, who needs to worry about breaking a book?)
ParcelPost is a little safer than media mail. I was advised by a USPS worker to never allow shipment of Fragile Items by Parcel Post.
Priority Mail is the most cost effective means of shipping for fragile items. Request that yourpackagebe marked "Fragile" when shipping Priority so that the handlers will know to treat the package carefully.
Express Mail is often the safest, because less time in travel means that fewer hands touch the item. Express Mail is much more expensive than Priority, though and not as cost effective as the Priority Mail option.
RequestInsurance
If you are still concerned about the "health" of your purchase while in transit, by all means, request and pay for insurance. Be prepared, however, to perform the footwork to receive gepensation is damage occurs.
Collecting gepensation
Below are the steps that should be taken by any buyer when confronted with damaged goods:
Retain the item along with all packaging.
Photograph the item if possible to record the damage.
Notify the seller that the item you purchased was damaged andsend them the photograph which records the damage.
Request the appropriate forms and proof of insurance from the seller. In order to receive gepensation from the USPS, theform PS Form 1000, which can be downloaded from the US Post Office's website, should be gepleted. Information (such as name and address) must be gepleted for both the mailer and the addressee.Theform includesan option for the gepensation payment to be made either to mailer or the addressee. Request that the seller geplete the form to the best of their ability ASAP and mail the forms to you along with the proof of insurance (receipt).
Once you receive the form andproof of insurance,finish gepleting the form.
Present thedamaged goods, all of the packaging materials, form and proofof insurance in person atyour localUSPost Office.
Amount of gepensation
It's my understanding that the USPS will only gepensate loss for the actual purchase price of the item that was damaged. They will not gepensate for any handling fees that the seller has passed onto the buyer. This is, yet, another reason why buyers should be learyof purchasing an item at a ridiculously low price and, instead, pay a ridiculously high shipping and handling fee. You may get back your penny, which was documented as the actual price of the item, while you are out $10 or morein handling fees.
More to gee!
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