Unclear Insurance/Refund Expectations

[justthriftin]

Please excuse the long post, but I am yet to find a helpful answer to a recurring issue. 

I have seen a significant uptick in damaged packages. over the last few months. As such, I am familiar with filing a USPS claim through their website, but where I am struggling is the relationship between eBay's expectations and the process of claim approval through USPS. 

To give more detail, I received a message about a damaged package about 6 weeks ago. Despite proper packaging, the box arrived damaged and the item inside was broken. After looking into the claim process through USPS, I was informed the broken item and packaging materials would need to be inspected at a local post office.

I felt this left me with 2 options-- I could either pay return shipping on a broken item and file a claim on the original tracking number (because this was when the item was originally damaged) and assume I would not get reimbursed from the post office for the return label. Or, I could request the buyer take the broken item in for inspection. The problem with the latter of these options is that I would not want to withhold a refund to my buyer while the claim was being processed and the issuance of a refund would essentially be a forfeit of any expectations of the buyer to actually take the item into the post office. With these options in limbo, I finally just decided to fully refund the buyer and file a claim with the photo evidence they provided me in their original request. This claim was denied because the item was never brought in for inspection. 

Since this incident, similar scenarios have happed two other times. Both times I have just issued a full refund because if they were to formally open a case through eBay, I would be expected to do so anyway. 

With all of that context, I am wondering about the best way to handle these situations. If a buyer contacts me about a damaged item, is it okay for me to open a claim and wait to issue a refund until the claim is resolved? My fear with this is that they could just open a return case and I would be charged an additional return shipping charge or be forced to go ahead and refund them anyways. 

To make matters more complicated, I spoke with an eBay shipping representative on the phone and received some information that I did not trust. I was told to simply not respond to damaged item claims because it was USPS fault, which would keep me from needing to pay for a refund out of pocket because of seller protections. After they opened a claim, I would wait for eBay to step in and he said it would automatically be decided in my favor. When I asked about how they would know this wasn't due to faulty packaging, I was told to take photographs of my packaging and send it to buyers prior to shipping, which would count evidence if a case was ever opened. As mentioned, I don't trust this information because it is filled with the exact opposite of information I've heard everywhere else, yet this was communicated directly from an (outsourced) eBay call center.

I hope all that makes sense. Again, very sorry for the length of post here, but would appreciate any insight from someone who is familiar with situations such as this. 

[kensgiftshop]

Ask the buyer for a few pictures of the item and package, then refund the buyer.
Have the buyer hang on to the item and package so it can be inspected.
You file a claim with the carrier.

Buyer doesn't have to wait to see if the claim is approved or not before they get their refund.

[justthriftin]

I understand the buyer doesn't need to wait to get a refund, and I think that's one of the issues I'm facing here. As soon as they receive a refund, I have zero expectation that they would actually take the item into the post office for inspection. 

With that being said, I did speak with a local post office person today. They said that is soon as I had a claim number the buyer could take the item in for inspection. However, I would be afraid they would either not receive any kind of proper documentation or that the post office would lose the item. 

Lastly, what are your thoughts about what the eBay rep told me? I was baffled and I feel like if I actually took his advice I would very quickly have a defect for failing to resolve a dispute. 

[frodobagginskennedy]

OMG!  Do not listen to the guidance set by this e Bay rep.  You can tell the buyer to open a case through e bay.  You will then have to answer the case.  NEVER, IMHO, should you deny a refund if the buyer has sent pictures of the damage.  Actually I would never deny a refund for any reason on a INAD case  as I know a INAD case the buyer will win,  If you have e Bay step in then you will be having the money taken from your account, then you will also get a nice big demerit on you selling account and probably a nice red donut on you feedback.

I cannot beleive a so called e bay rep would tell you that information.  Once again they are telling you what you want to hear just to get you off the phone.

I hope you did not listen to them!!

[justthriftin]

No, I did not listen to them.

I've had three similar situations over the past month. These items were well packaged, and they are arriving with damaged boxes and broken. In each of the situations I have promptly refunded my buyers, as this is the same kind of customer service I would expect. 

With that being said, each one of them has been a total loss. I don't see the point in sending back a broken item, just to take an extra loss on return shipping. I'm really just trying to figure out the best way to mitigate this situation going forward. My guess is the USPS is experiencing staffing shortages and is no longer able to responsibly and safely handle packages. I don't see this situation improving any time soon, and in the meantime having a claim approved seems like having to jump through endless hoops. My current solution is to just add the shipcover insurance to items I think post a risk for damage, as this claims process is easier and seems much more likely to get approved. 

[mtgraves7984]

As soon as they receive a refund, I have zero expectation that they would actually take the item into the post office for inspection. 

@justthriftin 

I would expect zero help from a buyer who hasn't received a refund, too. After all, they'll eventually be refunded by eBay.

[tobaccocardyahoo]

If you have had 3 damaged shipments in a month, your items were probably not properly packed.

I looked at the breakable items you packed, and frankly, they are too cheap to take the time to properly pack and double box them.

The situation you are in is quite common. Always has been, is more likely to occur with carriers other than USPS.

The reality is, that your insurance claim is likely to be rejected for packaging.

Going forward, consider these alternatives.

Do not offer breakables for sale which is not worth double-boxing and the time that takes, and the increased shipping cost.

Refund without return all cheap items which  break. Keep your losses to the cost of the transaction.

[justthriftin]

Just to clarify, I had already refunded the buyer which basically means "this transaction is done, and there is no further action needed." The problem is that from this point, the buyer cannot be expected to follow-up by taking their broken item into the post office just for me to have my claim approved. 

[justthriftin]

Thank you for that. I'm not entirely convinced my items were poorly packaged--especially when the damage photos I've received literally show crushed boxes. However, you have provided some helpful information in the sense that you have confirmed my current response of just issuing a refund upon receipt of the photos is a good way to go. 

[kensgiftshop]

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@justthriftin wrote:

I understand the buyer doesn't need to wait to get a refund, and I think that's one of the issues I'm facing here. As soon as they receive a refund, I have zero expectation that they would actually take the item into the post office for inspection. 

With that being said, I did speak with a local post office person today. They said that is soon as I had a claim number the buyer could take the item in for inspection. However, I would be afraid they would either not receive any kind of proper documentation or that the post office would lose the item. 

Lastly, what are your thoughts about what the eBay rep told me? I was baffled and I feel like if I actually took his advice I would very quickly have a defect for failing to resolve a dispute. 

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I would believe anything the phone reps tell me.

They like to tell you what you want to hear, just to get you off the phone.

If the buyer files an INAD and you do nothing, they will refund the buyer from your account, keep their fee's and give you a defect for not handling the return.

I think buyers would be more willing to help, the quicker they are taken care of.

Do they have to help with an insurance issue, no.

Will buyer be refunded if the don't help, yes.

It doesn't matter if they help with an insurance claim or not, the buyer will still get a refund.

The chances of USPS paying off on a claim is pretty slim now days.

Depending on the item and how much damaged, you can pay to have it returned (which voids insurance) and see if it can be repaired, then resell.

[frodobagginskennedy]

for the price points you sell at you are doing the correct thing by refunding and moving on.  The post office used to be GREAT at refunding damaged item claims.  Then when the pandemic hit the brakes went on really hard.  Every claim I filed....3 in a year....was denied right off.  I knew it would never be granted unless the buyer took the package to the PO.  I was NOT going to inconvenience my buyers by asking them to do that since I had already bugged them for pictures.  I just dealt with the situation by refunding partial or full if the item was completely goobered.

[kensgiftshop]

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@justthriftin wrote:

Just to clarify, I had already refunded the buyer which basically means "this transaction is done, and there is no further action needed." The problem is that from this point, the buyer cannot be expected to follow-up by taking their broken item into the post office just for me to have my claim approved. 

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I don't know about everywhere, but I bet they can call their PO and have the packages picked up when their mail is delivered or schedule a pick up..

[justthriftin]

Interesting. I would not have considered that option for this particular scenario. 

[krazzykats]

If you don't double box, then I would at least add reinforcement cardboard to the insides of the box's sidewalls, and maybe top and bottom. 

I recycle good, clean cardboard by slicing it into smaller sheets then cutting them to fit inside the box sidewalls.  Makes for an almost indestructible package.  

And I also only use new boxes to ship in.

ᓚᘏᗢ

[justthriftin]

Good idea. I use a lot of recycled boxes, but should probably take something like that into consideration. I was reading in another post earlier about ECT rating. I'm sure the double walling would help with that. 

P.S. Love the cat photo. Looks like a cat I used to have. He supposedly ran off while my mom was moving.