This is just a heads up on the limits of shipping FedEx Smart Post. I have just started to use this service since the USPS shipping prices increased. It appears to be the most economical option when shipping items over 1lb (depending on location) therefore reducing the fee amounts. I did not anticipate there would be a problem with a lost package since it rarely happens.
Well, as they always say, there's always a first time for everything. I shipped an item out using FedEx smart post as I usually do. The buyer contacted me that their item had not arrived. When I searched for the tracking number the item shows up as " Out for delivery - Out for delivery with the U.S. Postal Service" 7 days after the package was scanned as "In transit". Obviously after I contacted eBay about this issue, they froze the case pending investigation to then refund the buyer two days later with the reason being "the item was never delivered to the buyer".
After appealing unsuccessfully with eBay, they asked that I file a claim with FedEx. The result was the following response "Fedex smartpost will only allow claims for packages that are lost or damaged while under the control of FedEx. Packages lost or damaged while in USPS control are not eligible for claims". So the claim now goes to USPS.
Searching the USPS website with the tracking number was unsuccessful due to the smartpost number being short (you have to add the "92" in front of a fedex smartpost tracking number to be able to find tracking info on the USPS website... I found this out after speaking to a human being on the phone!)
After filling out the claim on usps I received phone calls asking for descriptions of the item so they can search the "undeliverable". I was then denied the claim stating the package was lost and I could not file for a claim since I did not add insurance to the package. End result: file lost mail claim for the item to be found. Which if you have ever done this before (I have) chances are the package will not be found.
Moral of the story: If you use Fedex smartpost and the item is over $50 worth, add the insurance. Since your package will be handled by 2 agencies leading the chances of loss higher. Which will eventually make sense for you to just ship your item Priority mail since the insurance is already part of the price.
