We recently sold an item to a buyer that was damaged by the carrier in transit. We had purchased ShipCover insurance for the full value of the item to protect both ourselves and the buyer from any losses.
However, when the buyer received the item they opened a return case for "Item not as described" instead of "Damaged in transit".
We explained that there was no need to worry as the item was fully insured and that the proper course of action is to proceed with the insurance claim as not only would they be fully reimbursed but they would likely be able to keep the items as well.
We requested that the buyer upload photos of the package which clearly showed signs of mishandling.
Initially the buyer seemed fine with proceeding with the insurance claim.
However, when we went to file the claim we realized that we had to wait 7 days before we could even initiate the ShipCover claim (the reasoning for this is simply unfathomable). This is contrary to how eBay is marketing the insurance to sellers as it's supposed to streamline and expedite the claims process which couldn't be any further from the truth.
Had we purchased USPS insurance the claims process would have been able to be initiated immediately so they are false advertising the benefits of their own branded insurance.
Despite not being able to file a ShipCover claim until 5/24, the return request required that we take action by 5/20.
We called eBay and their incompetent outsourced staff in the Philippines were not knowledgable about eBay's own branded insurance coverage. We spoke with half a dozen reps who all gave us conflicting information ranging from "On this one, you can just ignore the return request" to "I don't know let me transfer you to my colleague who can further assist you".
So, we tried our best to get the disgruntled buyer to sit and twiddle their thumbs for 7 days. However, on 5/20 when eBay informed them that they were eligible to escalate the claim to customer service, that's exactly what they did.
Within an hour or two eBay had closed the case in the buyers favor and told them to return the damaged items to us at our expense and before we could even bat an eyelash USPS had possession of the items.
We immediately attempted to appeal the decision based on the fact that the buyer used incorrect reasoning for the return request and that they had provided clear evidence of mishandling in transit and that the terms of the insurance policy clearly states that the buyer must hold onto the items in order for the insurance company to investigate the claim.
By telling the buyer to return the items they negated our ability to win the insurance claim.
It's unfathomable that they would sell us their own branded insurance and then deny us the ability to make a claim by requiring us to resolve a return case before we are even eligible to open a claim with the insurance company.
Despite us not being at fault for damaging the items, and despite us purchasing eBay's ShipCover insurance, we could not win a claim and the damaged items were returned to us at our expense and the buyer was fully reimbursed including outbound shipping and we ultimately wound up taking a significant loss which was the direct result of eBay's disorganization.
It's a pretty difficult pill to swallow and at this point it seems that the only recourse is to sue eBay in small claims court for their mishandling of this situation and for selling us insurance that they did not give us an opportunity to redeem.
After 20 years this really seems like the end of the road for us as the level of disorganization at eBay resulting from their outsourced workforce is intolerable and this type of outcome where a seller must unjustly eat the bill for something that should have been rightfully insured is just unacceptable.
