More Notes from The Secret Shopper - Thoughts on Insured Packages

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Permalink Reply by CheriShops - Admin on December 16, 2011 at 11:42am

Very good point!

I insure  via the USPS now, but I once had a UPIC account for insurance, and they expressly state one should not even mark the package "insured"

Permalink Reply by 2Hearts Uptown @Ruby Lane on December 16, 2011 at 11:52am

Self insurance is also insurance.  For the buyer, the only fact that matters is this:  if they do not receive the package, or if it damaged, will they get their money back - does the seller stand behind the sale with that guarantee?   Although I typically use either USPS insurance or third party insurance, on very small items (less than $25.00), I self-insure.   My customers can decline insurance on any purchase under $100, so it is their option to insure these smaller purchases.  I think RL/RP should make it more obvious to the buyers when they have the option to decline, but that's another issue.   Self-insurance is insurance to the same degree as through an outside insurer.  In fact, I would pay off immediately, without paperwork, etc.  on a claim, so it is actually better than USPS insurance.  

Speaking of which, here is a sad tale about USPS:  I sent a package registered mail to a foreign country.  It did not arrive.   Customer unhappy and turned into a nightmare in her own right.  I filed USPS claim.  After 60 days (yep, that's how long they take), I get a letter saying that according to the foreign postal service, package had been delivered.  I would have assumed that my customer had lied to me about never receiving it (and been particularly livid, as PayPal refunded her money prior to the results of USPS investigation) except that the package had come back to me two weeks earlier from the lost mail center in Atlanta - no explanation.   They knew where to return it because I had taped my business card to the jewelry box.  I notified USPS claim center of its return, and they told me to take my package and registered receipt info to my local post office to get refunded for the postage.  The local post office did so VERY reluctantly, as a special exception - not as something I was entitled to after having paid $11.00 extra for registered mail and clear evidence that it had not ever been delivered!  I was astounded that the national USPS claim center sent me this "it was delivered" claim resolution letter after I had notified them that it had come back to me via the lost mail center.   This did not give me great confidence in the way the USPS handles problems.  I have not sent anything registered mail since then.  

I have read on other forums that it is much easier to get a claim handled through ShipInsurance and U-Pic than through USPS.   This is my only claim experience - not a happy one!   Any other experiences, good or bad, to add to this one?  

Best wishes, D'Anne

Permalink Reply by Jan Story on December 16, 2011 at 5:55pm

Well, when you notify the buyer of shipment and send them the DC number, you can always add "and insured through InsurePost" or whoever you're using.  It would be nice, though, if you had a number from the insurer to add to the email.  InsurePost only gives you an "order number."  When I insure an eBay sale with ShipSurance through my listing service, they automatically send an insurance summary to the buyer - it would be nice if other insurers did that. 

Permalink Reply by Flashback Alley on December 16, 2011 at 6:43pm

I, too, often use U-Pic and know they specifically instruct that an insured item not be advertised as such.  

I would hope it wouldn't make any difference, but if I were someone who self-insured, I'm not sure I'd want to advertise that fact to buyers, since you never know ... well, I've heard enough stories about buyers claiming an item is damaged in shipment, then returning an item that proves to be similar but not the *same* item originally shipped. 

Knowing that some people self-insure and that there are a variety of third-party insurers, I was just thinking a statement on the RL/RP checkout page might be helpful.

Permalink Reply by San Marcos Art Glass on December 16, 2011 at 10:33pm

I use USPS insurance for domestic shipments and U-PIC for international. I rarely give buyers an option to not insure -- maybe if something cost $10 and shipping is low. The reality is that the package belongs to me until the customer if satisfied, so if they opt not to insure, it will be me who covers the loss is something happens. With PayPal and credit cards, the obligation to insure lies with the seller, so customers are able to be refunded through PayPal or their credit cards even if insurance was declined. I will only not include insurance if I am willing to take a chance on losing the purchase price plus postage.

I don't charge insurance on international shipments. Usually the online shipping discount comes close to covering the cost of the insurance. The postage is already so high, I don't want to add more to it, considering I will get a substantial discount from the calculated price. (I ship heavy items.) When I insure with U-PIC, I let the customer know it is insured with them and give the order number. U-PIC also has a page where you can print out cards to include. You can print out one page of the front, then one of the back of the card, then use your scanner to make pages of the cards. It is a nice feature for anyone who wants to add a bit of professionalism to their 3rd party insurance choice.

Permalink Reply by Suzy's Timeless Treasures on December 17, 2011 at 12:44pm

First of all, I didn't receive the More Notes from the Secret Shopper email so I'll have to check it out on RL's forum.

I started using InsurePost (a subsidiary of Shipsurance) for all my packages $25 and up about a month ago.  Under $25 I give the option to the buyer to decline insurance.   I include a printed label on the customer's invoice that says 'This package was insured with InsurePost.  Thank you for your business!"  so they know that if they paid for insurance, they got it even though the package is not marked.   The USPS charges way too much for insurance and I've never heard a good story about filing a claim with them.

I actually don't like the phrase that RL uses about if the buyer doesn't opt for insurance, then it is not RL/seller's responsibility if the package is lost or damaged (I'm going from memory here so I don't remember the exact wording).    I have a lot of customers that opt for insurance on items worth $20 or less and I think it's because of that phrase.  I think it makes it sound like the buyer is out of luck if they don't opt for  insurance and something happens to their purchase.    I also would honor a claim from a customer even if they had not purchased insurance as others have said.   But I don't want to put that in my Terms as it goes against what RL states.

I like Flashback Alley's suggestion of adding additional wording regarding insuring packages.  Possibly surveying shop owners would be a good idea.

Permalink Reply by RC Antiques on December 17, 2011 at 10:07pm

I think everyone handles this situation wonderful.

Susy's Timeless Treasures idea is fabulous if you use a 3rd party insurer.

Marcos sells breakable items, so, insurance is a must, and I also like his suggesstions.

2Hearts UpTown, I can relate to your misfortune. I have had similar incidents through the years as far as shipping Internationally. I still ship Internationally though, because crazy incidents can happen here too. But, I sure can relate to your nightmare experience. I have had more than just a few, one customer was even a crook, a real one that took someone's credit cards in Austria...makes life exciting :-)

I think it's important to remember, all shop owners have the right to run their shop the way they want to, regardless of what risks they may take.

I think Flashback Alley has a good idea, however, I think the suggestion, should again, be the shop owner's decision, not Ruby Lane.

I saw all positives to the " notes " email...which, those of you that know me, that's the usual for me, LOL

But seriously, this time, when they revealed the Secret Shopper's Report, I felt proud to be a shop owner on RL.

I love the idea of the items purchased given to charites.

And, I when I read the statement, " Shoppers feel lied to when the full insurance is not the case "...I think it's a minor issue, and really, was suprised to even think a shop owner would not insure the item for the full coverage. That would be dumb because the insurance would not cover the whole cost of the item if something happened.

I am a regular shopper on line ( have been for years, and I love to shop, so, we are not talking about just a few packages LOL )  and I have never looked at my packages to see if they are insured. When a person gets a package in the mail, that shipping label is not noticed...unless the packages rattles like a zillion pieces of glass is inside :-) then, one would look to be sure it is insured.

It's a Secret Shopper Report and needed to be reported if a Secret Shopper had this incident happen....but, I have to say, the odds of shop owners not insuring an item for full coverage has to be very rare...and it was unfortunate that a Secret Shopper had that incident...one dirty sock ruined our laundry, but the rest of the load is on top of things, and the comments on this page proves it. 

Two thumbs up to a fabulous look of the crazy world of insurance.

I enjoyed everyone's conversation and am thankful we have groups like this to be able to keep on top of things.

 I wish FaceBook had a group cause they ruined it so bad, I am seldom there anymore...I miss my old FaceBook :-(

Here's wishing everyone Happy Holidays,

best wishes, Linda

 

 

 

Permalink Reply by Gardenartus Antiques on December 22, 2011 at 1:09am

Hi fellow Michigander :) We note in their PayPal email when we ship their item that it is fully insured through our 3rd party ins. carrier and if they paid by check or money order in the email we send them when we give them their tracking number. I would think a lot of customers would assume a package isn't insured if it doesn't have the ins. slip on the package or they aren't told it is insured. It would be nice if all 3rd party ins. carriers sent out the info like you said but since they don't we really should tell them ourselves just to ease their mind.

Jan Story said:

Well, when you notify the buyer of shipment and send them the DC number, you can always add "and insured through InsurePost" or whoever you're using.  It would be nice, though, if you had a number from the insurer to add to the email.  InsurePost only gives you an "order number."  When I insure an eBay sale with ShipSurance through my listing service, they automatically send an insurance summary to the buyer - it would be nice if other insurers did that. 

Permalink Reply by Jan Story on December 22, 2011 at 11:12am

Also, if the buyer knows you're going to file an insurance claim if they say they didn't get their item (when delivery confirmation says they did) or allege it was damaged, they might think twice before trying to scam you out of a refund with a bogus claim. 

Since I never use Post Office insurance and include insurance in my pricing, it never occurred to me that buyers would expect a package to be marked insured and would assume it wasn't insured if it wasn't marked.  It's kind of dumb to mark it plainly anyway; the Post Office really ought to hide that information in the barcode. You'd think anybody would realize that "insured" simply means "I'm worth money - steal me!"