eBay

inhawaii · ‎09-09-2018

I sell a Starbucks card for $10. They cost me nothing. I used to charge $1 for shipping and just mail it First Class Mail in an envelope, no tracking. If someone claims they didn't receive it, i'll refund them. I'd be out a stamp and a envelope.

I sold 17 of them without any problem ... until today. Buyer claimed he didn't receive it. I don't believe that for one second but a full refund was given.

No more $1 shipping. Shipping is $4 via USPS First Class Mail with tracking.

M*A*S*H theme - Johnny Mandel

southern*sweet*tea · ‎09-09-2018

@robot-hands wrote:
@robot-hands wrote:
@luckythewinner wrote:
@robot-hands wrote:
You are still out the money....the exact opposite of "insurance"
Actually, that is exactly how self-insurance does work.

self-insurance
(noun)
insurance of oneself or one's interests by maintaining a fund to cover possible losses rather than by purchasing an insurance policy.

...actually.

Your not covering anything, you didn't insure anything and you are still out the money.

...your own money. Pointless.

@myjunqueyourtreasure wrote:
With the "usual" insurance you pay premiums hoping you'll never have to use it. Same thing really.

Except here on ebay you don't have to pay for your own insurance. You can get the buyer to pay for it.

There is no better "insurance"

Yep

Where do you think the self insurance money comes from? It's added in to the item cost, just like any other expense. Buyers should be paying all your costs.

The easier you are to offend the easier you are to control.

We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did. - Thomas Sowell

luckythewinner · ‎09-09-2018

@robot-hands wrote:
Your not covering anything, you didn't insure anything and you are still out the money.
...your own money. Pointless.

Not pointless at all - just a different perspective.

I can't count the number of sellers who have posted here over the years saying that they can't afford to refund a buyer because they have spent the money already.

With self-insurance, you contribute a portion of each sale to a separate fund, and there is always a balance available to pay claims.

Yes, it is your own money. But instead of paying a premium to an insurance company, you pay a premium to yourself. But unlike an insurance company, if there are no claims you get to put the premiums you paid right back in your pocket.

It's also not pointless because small sellers have no other alternative - it's not like Lloyds is going to write a policy for a seller with 17 gift cards to sell.

ted_200 · ‎09-09-2018

Except here on ebay you don't have to pay for your own insurance. You can get the buyer to pay for it.

There is no better "insurance"

Well... if they'll sell just as well at $14 total cost as they did at $11 total cost, it would make the most sense to sell them at $14, and continue to ship them without tracking using a stamp. Y'all can get out your calculator and go over OP's example to understand why.

If you really can get the buyers to pay $3 more on 17 items ($54), it makes more sense to put it in your wallet instead of giving it to the USPS to prevent the loss of a 50¢ stamp and an envelope. How do insurance companies make money? They charge $54 in premium (and put it in their cookie jar), and pay out 50¢.

The Floggings Will Continue Until Morale Improves.

grapplingmonkey · ‎09-09-2018

Im wondering how you dont get defects for not up loading tracking ? I just watched a lady take a handfull of cards at starbucks the other day and I couldnt figure out why know I know.

ripcityresell · ‎09-09-2018

@inhawaii wrote:
I sell a Starbucks card for $10. They cost me nothing. I used to charge $1 for shipping and just mail it First Class Mail in an envelope, no tracking. If someone claims they didn't receive it, i'll refund them. I'd be out a stamp and a envelope.

I sold 17 of them without any problem ... until today. Buyer claimed he didn't receive it. I don't believe that for one second but a full refund was given.

No more $1 shipping. Shipping is $4 via USPS First Class Mail with tracking.

So, you admitted that you knew the risks of shipping without tracking but when the situation actually happened you get all upset and decide to change to shipping with tracking. You even say that if they do claim they didn't get it, oh well no big deal, you're only out the envelope and stamp...

impalajohnny · ‎09-09-2018

Insurance is big business because most Americans are risk averse. I know a seller who spends 16k per year on postal insurance and never filed a claim but insists he needs it to sleep good at night. Everyone is different and should do what works for them. I self insure and sleep good at night spending about 2k per year on women and liquor.

luckythewinner · ‎09-10-2018

@grapplingmonkey wrote:
Im wondering how you dont get defects for not up loading tracking ? I just watched a lady take a handfull of cards at starbucks the other day and I couldnt figure out why know I know.

There is no defect for not uploading tracking.

lintbrush* · ‎09-10-2018

@robot-hands

You're not quite getting the self-insurance thing. The buyer still pays for it, but the premiums go into your kitty instead of someone elses.

$50 of USPS insurance costs $2.10.

$50 of lintbrush* insurance costs $1.00

Let's say I ship 350 items per year.

The post office collects $735.

I collect $350.

Breakage this year = 0

Now it's time for lintbrush insurance pays out to its employees... Oh that's me! I didn't just fund someone else's car payment. Yes, I have to pay taxes on it as it's not deemed as a legit business expense (unless I start an insurance company), but I'm still way ahead

In 3,000+ sales, breakage has cost me in total around $60- $65. 4 items.

I'm not saying I never use USPS insurance. I'm getting some for a $500+ item because that kind of hit to my wallet would be most unpleasant, but regardless of where I get insurance, that cost is still borne by the buyer.

robot-hands · ‎09-10-2018

You are still paying out to yourself out of what you paid in and not saving a penny. You paid in, you paid out.

Total wash. Pointless for me.

Boiled down...let's say you add a quarter to every listing for this cookie jar and you sell 100 items before one $100 dollar item goes missing.

You lost $75 and paid $25 for the privilege to do so, your "cookie jar" is now negative.

I'd rather spend that $25 on pints at the bar than throw it in the street for no reason.

lintbrush* · ‎09-10-2018

I didn't pay in. My buyer did. And who said anything about a quarter per sale. I said $1 for 50.

Whether I put their money towards self insurance or carrier insurance, that claim is getting paid out. It's what is left that matters.

So USPS insurance is $2.70 for that $100 item. I've sold 100 of them you say? That's $270 in insurance I've collected from my buyers and remitted to USPS. 1 goes missing and gets paid out. USPS ultimately makes $170? Why wouldn't I want to make that $170? (Even if I ony charged $2.00 for self-insurance on $100, I'd be ahead $100 in the end).

Insurance companies make money. Be your own insurance company.

And if the PO is losing 1 out of 100 packages, there's a lot more to worry about.

luckythewinner · ‎09-10-2018

I'd rather spend that $25 on pints at the bar than throw it in the street for no reason.

That $25 was not thrown in the street. It was put into a fund that you own and you control.

You lost $75 and paid $25 for the privilege to do so. Your "cookie jar" is now negative.

You didn't lose $75 and you didn't pay $25 for the privilege. You lost $100 and paid nothing for the privilege - exactly what would have happened had you not set up a self-insurance fund.

The difference is that with your self-insurance fund, that $100 loss only took $75 out of your budgeted income. In other words, your self-insurance is what freed up that $25 for pints at the bar 🙂