eBay may need to look into cheaper Insurance coverage

[santamonicajeweler]

I insure all my packages.  Insurance cost is very high on eBay postage options in compared to other sites. Hope, eBay corrects this issue before Christmas season  

[santamonicajeweler]

@johnrj1226 I hear you load and clear. You're not a very strong advocate of Insurance and you use the service on occasions when you have to! 

I am looking at your selling life experiences and see that you probably never needed insurance. Here is my experience; I mailed 162 packages this year so far, 5 got lost, stolen or delayed by more than 30 days, so I had to go looking for them. 

eBay sells insurance on their mailing services.  eBay procces about 2 billion transactions a day. The cost of insurance provided by eBay  is higher than industry standards. I am trying to ask for lower costs, that's all

[johnrj1226]

In my  real life selling experience yes we paid for insurance when equipment was shipped from the point of manufacture to our dealer or a servicing dealer or direct to the customer at locations all over the US or point of export from the US to the customers sometimes across the country.  The insurance rates often varied.  Yes equipment was stolen out of/off trailers/flat beds, delayed in snow blizzards, damaged in transit (hit a bridge or two).

As far  eBay goes - don't know what insurance standards  you are referring to for various carriers of your stuff on eBay or other online sites.  USPS has one insurance rate schedule not certain if insurance rate vary by ship to zone but would make sense if it did (longer distances greater his for loss/damage??.  Can you give provide  solid information  that substantiates your source(s) of industry standards?  See I have been to more than 2 rodeos plus one at the Huntsville, TX  prison championship and a goat roping contest & ain't heard anything like that.

No matter the price point of insurance coverage someone will  always think it is too high.

Of those 2 billion transactions eBay processes how many are covered by insurance over and above the basic insurance coverage  USPS/UPS/Fedex provides?  How many sales are in the 10K range?  How many people pay for extended warranty coverage for a car, appliance, computer? -  I for one never have or ever will - it is a money maker.  Nothing hateful about making a profit  but competition will keep you honest.  Walmart used to make 6.5% annually today they make3.5%? HMMM

One final question why  do folks in Cali pay $4.601*/gal in California & we only pay $3.249* in GA - gas is gas?

  *This is yesterday's average prices by state per AAA.  Heck I only paid $3.09 &9/10  yesterday with my Kroger fuel discount and we have a special blend for our area for climate control too.  And a year ago I only paid $1.94/gal

Think your solution to your profit/insurance issue(s) is to focus on sourcing your products at a cheaper price, if not feasible sell something  that will make you a profit  - 162 items/year is not great  unit volume but your dollar per sale maybe high - it is your net profit before taxes makes you successful - you can control some of your cost of sales if you can't change your business model - remember  20% of all new small business fail in the first year and 70% fail in the 10th year.

[santamonicajeweler]

@johnrj1226 

Good morning Tex

Let me start from the end;

"One final question why  do folks in Cali pay $4.601*/gal in California & we only pay $3.249* in GA - gas is gas?

  *This is yesterday's average prices by state per AAA.  Heck I only paid $3.09 &9/10  yesterday with my Kroger fuel discount and we have a special blend for our area for climate control too.  And a year ago I only paid $1.94/gal"

It's 50 C per gallon in California taxes and the rest is at Gas Companies' mercy. 

Taxes are split half and half between localities and State.  20 C per gal of taxes goes to maintenance and rehabilitation of State Highways.  5 Cents goes to State for them to play with  and the other 25 C in tax for Local governments to chew

I paid $4.11 per gallon with my Costco discount last Thursday. So it's safe to say, gas wholesale value in state of California is somewhere between $3.40-$3.50 per gallon which is  12% more than what you pay at pump in Texas. Gas companies call it delivery expense! Well, go figure

I sold about $60K this year on eBay which brings my average ticket price to about $350. So that's the real dilemma. Right now, my cost of insured shipping anything over $1000 is $45 for overnight delivery. eBay Buyers love that Premium Service. I tested to buy this from eBay and an insured option is not available at all.

For that that $10K Rolex my cost is $65 for overnight shipping insured

I am getting killed in insurance on smalls. However, 4 of 5 missing or over delayed packages were smalls

I have two options, one is to raise prices to cover the expense or find cheaper alternative and I don't want to go out of eBay if I can. With 2 billion transactions per day, I am sure, eBay has much better buying power than I ever possibly have 

By the way, I am in this business for 40 Yrs now and 2nd generation on same address. So, we're making a living and staying on, while 4 other Pawnshops and Jewelers nearby closed after last year's riots. They got burned down. I stood around all packed and very lucky not to be picked on 

[johnrj1226]

 Currently live in Georgia and have  for the  last 26 years.  Lived in Texas 14 years prior.  Before that live above the Mason Dixon line - Midwest.   Currently according to AAA Texas ave. gas, per gal is lower than GA at 3.053/gal for reg.  Yep we pay a extra tax  to our city, county on each gallon and it varies around the state and to the federal government tax of 18.3 cent on each gallon and more for diesel 24% more or less. which your did not mention.   AAA uses posted pump price sampling from key  locations - there analysis doest not account for any extra discount  consumers receive if they have a rewards card, member ship or store credit card - an impossible  challenge .  Certainly not all California folks don't belong to clubs like Sams Clubs, Costco, etc - not many close buy - 30 miles to go to the nearest Sams Club  was it was closed  a couple of years ago - not too pop - and it was about 10 miles from downtown Atlanta and I can't tell you were a Costco is in or around Atlanta.

But you  avoided answering any of my questions - like what is the credible basis of you claim  that eBay insurance prices are above some non defined industry standard that was so higher you lost money on a 10K price sale.  All that gas tax stuff  and discount stuff is just a "smoke screen" or did you just make that up.  You elected to offer one day service I elected to use Priority mail  service only but a few occasions were they ever late even from GA to LA only had 2 out of 1665 go the way of Charlie on the MTA . The rest were delivered within 2 or 3 business days - saved  customers some money and  received  positive comments on how fast their purchase was delivered - always shipped within 1 business day or sooner.  Page thru my FB history and see for yourself -  received  FB on 65% of my  total shipments with only 1 red hickie.

CIAO.

[santamonicajeweler]

@johnrj1226 It seems like; you're jiving me my friend. I'll get back to you when I see some solid conversation 

[johnrj1226]

Not really - just want to  see factual information that you based your claims on.  So far you haven't been able to.  Know jive talk well -  grew up on he south side of Deeetroit - Down River area where folks try to run  games daily.

[santamonicajeweler]

@johnrj1226 Which claim? I am not making a claim. I am asking to be provided with cheaper insurance alternative, that's all homie! 🤣

[johnrj1226]

1.  Read Your Post of 10.25.2021.  Read the entire second sentence.

2. Read Your Post of 10.26.2021,  Read both 3rd & 4th Paragraphs in their entirety

Just 5 & 6 days ago - should look very familiar.

3.  The word "claim" has several definitions - see   link >>>  https://www.google.com/search?client=firefox-b-1-d&q=claim+definition  

I used it as a verb for certain only 1 def as a verb..  You used it as a noun in your post 54 of 54.   as a noun there are two definitions  - you'll know which one you meant.

Enough  said

CIAO! & Adious

[1tuna]

I do not doubt your need for insurance but it just seems like your rate of missing  packages is a  bit high

I ship about 1500 packages a year in the USA and ,mabe 300-500 internationally  every year

I will only use usps first class and I never lose more than 1 package every 2-3 years in the USA

up until last years big problems I was losing maybe 1 out of every 5000 packages in the USA

thats why I like the coffe cup method

my favorite vintage watches in the entire USA come from a dealer I know in your town

lucky for him he`s in a high rise condo.I heard it was pretty bad there

if you know any IWJG members many of them know various folks who sell shipping  and insurance

good luck

@santamonicajeweler 

[popblox]

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@santamonicajeweler wrote:

I insure all my packages.  Insurance cost is very high on eBay postage options in compared to other sites. 

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What sites?

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[santamonicajeweler]

@popblox Can't say. However, if the moderator asks me, I'll asnwer 

[popblox]

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@santamonicajeweler wrote:

@popblox Can't say. However, if the moderator asks me, I'll asnwer 

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Why? There's nothing in the forum Rules of Engagement that suggests you can't discuss the shipping rates associated with other websites.

However, there is a rule that you shouldn't post patently false, unsubstantiated information.  

[santamonicajeweler]

@popblox 

Oh, I understand. I still feel comfortable for the moderator to give me a green light on the matter. If I start naming names, I'll be 'encouraging eBay community members to breach eBay "policies' " ' and I have no idea which rules I'll be violating but I have no intentions of doing so

It's an area I don't want to explore, unless; I have guarantees not to be sanctioned. Would you guarantee that?

My main Pont is and I am asking here for eBay with 2 Billion transactions a day to provide cheaper insurance than what they're offering, so I could transfer the savings to Buyers!

Can I help you with anything else?

[popblox]

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@santamonicajeweler wrote:

@popblox 

Oh, I understand. I still feel comfortable for the moderator to give me a green light on the matter. If I start naming names, I'll be 'encouraging eBay community members to breach eBay "policies' " ' and I have no idea which rules I'll be violating but I have no intentions of doing so

It's an area I don't want to explore, unless; I have guarantees not to be sanctioned. Would you guarantee that?

Yes.

[santamonicajeweler]

@popblox I am so sorry, who are you? May I have a first name and your position related to Khoros or eBay?

Thanks