A bit of SSP and a bit of information on selling internationally
coinpictures
Posts: 5,345 ✭✭✭
While it was fun to put together, I've decided to switch to using an Ebay Store to do all my selling. You can get directly to the World Coins category by clicking here. I only have 45 coins there so far, but am adding more.
The information part is about PayPal's seller protection, international sales, and insurance.
Because of PayPal's complete and utter lack of protection for U.S. sellers shipping internationally, and the problem of fraudulent chargebacks, I've toyed with not accepting PayPal on international sales, or requiring the purchase of Registered mail. Neither one is really a good alternative. The former because the vast majority of people (myself included) prefer to pay via PayPal. The latter because Registered Mail from the USPS is so stupidly expensive compared to the cost in other countries.
The answer is to not rely on PayPal's Seller Protection Policy for international sales. Assume (rightfully so) that it is useless. Instead, require (or incorporate into your base shipping charges) insurance. A bigger problem, however, is the fact that the USPS does not insure to many countries (even in western Europe) or in order to obtain insurance you are required to send at Air Parcel Post rates rather than the much cheaper Air Letter Post rates. Parcel post rates assume a larger, heavier package, so the rates are more competitive on packages over 1 pound. On smaller packages like what coins normally would be shipped in, the costs are prohibitive.
For example, a 3-ounce package going to Germany. Air Letter Post: $2.55, no insurance available. Global Priority Mail: $5.25, no insurance available. Air Parcel Post: $17.50, insurance available.
Note that none of the above shipping methods can be sent in any manner that will adhere to the requirements of PayPal's Seller Protection Policy. As a U.S. seller, always assume that you will NOT be protected under any circumstances when shipping internationally.
So what is the answer?
Third party insurance. The two largest companies used by Ebay sellers are DSI and U-Pic. I spent quite a bit of time both reading about, and communicating with, both parties prior to choosing one. Reading on the Ebay discussion boards is useful in this respect. Both companies offer the ability to purchase single-shipment insurance via their web sites for those who simply need occasional coverage, as opposed to writing a policy.
Pay special attention to excluded contents (both companies exclude "currency", "money", and "bullion") so I needed to get clarification on "collectible coins". Both companies WILL cover collectible coins and stamps, although DSI must write an endorsement in order to cover stamps.
Since I'm just getting started, I'm a low-volume shipper. My volume will fluctuate from mont to month moreso than that of an established shipper. Both companies handle low volume shippers very differently.
U-Pic: You start off with a $20/month policy which will cover all your shipments up to $xxx per shipment (in my case the figure they quoted was $200 per package). No need for reporting (this bothered me a bit), only paperwork needed is in the event of a claim. This would be ok once you get the ball rolling a bit, but you're paying that $20 regardless of whether you ship any packages at all that month.
DSI: No monthly fee; you pay per insured shipment. You enter your shipment information online as you ship, and then at the end of the month you are invoiced with the amount you owe (PayPal or Credit Card, your choice).
Rates are very competitive with USPS, in many cases cheaper. Both companies will insure air letter post; no need to pay for the more expensive methods.
Claims: 21-day waiting for domestic packages, 45-day waiting for international. Both companies require the recipient to fill out and sign an affadavit form and send it back to the shipper. U-Pic wants the original form (which can be problematic for international transactions) whereas DSI will allow a fax or scanned version of the signature.
"So how would this work with PayPal?" you might ask. Well, here is how I would handle the claims process:
1. Receiver informs me that package never arrived, after waiting a suitable time period.
2. I fill out the pertinent information in the affadavit form and email it to receiver for signature.
3. Upon receipt of signed affadavit either by snail mail or email, I issue PayPal refund immediately.
4. Once required waiting period has passed, I file claim.
After evaluating both companies, I opted for DSI, for several reasons:
1. Web presence is a bit more polished.
2. Paying by the piece is more cost effective for me than a $20 monthly minimum.
3. Email and phone communication was considerably more responsive with DSI. I like that in a company.
If you have any questions, I'll answer them as best I can.
The information part is about PayPal's seller protection, international sales, and insurance.
Because of PayPal's complete and utter lack of protection for U.S. sellers shipping internationally, and the problem of fraudulent chargebacks, I've toyed with not accepting PayPal on international sales, or requiring the purchase of Registered mail. Neither one is really a good alternative. The former because the vast majority of people (myself included) prefer to pay via PayPal. The latter because Registered Mail from the USPS is so stupidly expensive compared to the cost in other countries.
The answer is to not rely on PayPal's Seller Protection Policy for international sales. Assume (rightfully so) that it is useless. Instead, require (or incorporate into your base shipping charges) insurance. A bigger problem, however, is the fact that the USPS does not insure to many countries (even in western Europe) or in order to obtain insurance you are required to send at Air Parcel Post rates rather than the much cheaper Air Letter Post rates. Parcel post rates assume a larger, heavier package, so the rates are more competitive on packages over 1 pound. On smaller packages like what coins normally would be shipped in, the costs are prohibitive.
For example, a 3-ounce package going to Germany. Air Letter Post: $2.55, no insurance available. Global Priority Mail: $5.25, no insurance available. Air Parcel Post: $17.50, insurance available.
Note that none of the above shipping methods can be sent in any manner that will adhere to the requirements of PayPal's Seller Protection Policy. As a U.S. seller, always assume that you will NOT be protected under any circumstances when shipping internationally.
So what is the answer?
Third party insurance. The two largest companies used by Ebay sellers are DSI and U-Pic. I spent quite a bit of time both reading about, and communicating with, both parties prior to choosing one. Reading on the Ebay discussion boards is useful in this respect. Both companies offer the ability to purchase single-shipment insurance via their web sites for those who simply need occasional coverage, as opposed to writing a policy.
Pay special attention to excluded contents (both companies exclude "currency", "money", and "bullion") so I needed to get clarification on "collectible coins". Both companies WILL cover collectible coins and stamps, although DSI must write an endorsement in order to cover stamps.
Since I'm just getting started, I'm a low-volume shipper. My volume will fluctuate from mont to month moreso than that of an established shipper. Both companies handle low volume shippers very differently.
U-Pic: You start off with a $20/month policy which will cover all your shipments up to $xxx per shipment (in my case the figure they quoted was $200 per package). No need for reporting (this bothered me a bit), only paperwork needed is in the event of a claim. This would be ok once you get the ball rolling a bit, but you're paying that $20 regardless of whether you ship any packages at all that month.
DSI: No monthly fee; you pay per insured shipment. You enter your shipment information online as you ship, and then at the end of the month you are invoiced with the amount you owe (PayPal or Credit Card, your choice).
Rates are very competitive with USPS, in many cases cheaper. Both companies will insure air letter post; no need to pay for the more expensive methods.
Claims: 21-day waiting for domestic packages, 45-day waiting for international. Both companies require the recipient to fill out and sign an affadavit form and send it back to the shipper. U-Pic wants the original form (which can be problematic for international transactions) whereas DSI will allow a fax or scanned version of the signature.
"So how would this work with PayPal?" you might ask. Well, here is how I would handle the claims process:
1. Receiver informs me that package never arrived, after waiting a suitable time period.
2. I fill out the pertinent information in the affadavit form and email it to receiver for signature.
3. Upon receipt of signed affadavit either by snail mail or email, I issue PayPal refund immediately.
4. Once required waiting period has passed, I file claim.
After evaluating both companies, I opted for DSI, for several reasons:
1. Web presence is a bit more polished.
2. Paying by the piece is more cost effective for me than a $20 monthly minimum.
3. Email and phone communication was considerably more responsive with DSI. I like that in a company.
If you have any questions, I'll answer them as best I can.
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Comments
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Tom, formerly in Albuquerque, NM.
You sound like you're on a parallel track to mine, E-Bay store vs individual auction item selling. Lot's of fun, eh?
Recently sent a rather expensive book to Germany, 2 lbs-cost $23.50 for the 4-10 day service including insurance (which I included at my own cost after the customer declined the purchase at $6.50-my own peace of mind really). I wanted to insure the book for $600 but the max was $500.
Bidder paid me quicktime-I'm not sure what I should worry about re: immediate paypal payments from Europe. I transferred the money into another account and...that's that.
What am I missing?
is that you end up being governed by inferiors. – Plato
<< <i>immediate paypal payments from Europe. I transferred the money into another account and...that's that. >>
If your PayPal account is tied into a back account, PayPal can, and will, go into that account to get money.
DPOTD-3
'Emancipate yourselves from mental slavery'
CU #3245 B.N.A. #428
Don