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eBay now wants you to give free insurance as well

Wolf359Wolf359 Posts: 7,657 ✭✭✭
Fall 2009 Update
- Buyer charges for shipping insurance no longer allowed.

ptional buyer charges for shipping insurance removed: The insurance option creates the perception that buyers need to purchase shipping insurance as a protection on eBay, an experience they're not accustomed to on other ecommerce sites. In fact, sellers have always been responsible for their items until they arrive safely in their customers' hands. That's why shipping insurance will no longer be included in the purchase flow as either an option or requirement for buyers.

Of course you can choose to purchase insurance on shipments, but not ask buyers to buy insurance separately. In some categories like Antiques, Collectibles, and Jewelry, shipping insurance for sellers is essential. When appropriate, you can include the cost of insurance in your item or shipping price.


Has eBay gone nuts?

I see the screaming now when I tell them it's going to cost $8.50 to ship and insure a $400 item.

Comments

  • AndyMacAndyMac Posts: 194
    I think this only applies to "Free Shipping". If so, don't offer free shipping.
    Andy
  • TomBTomB Posts: 21,456 ✭✭✭✭✭
    I've always built the cost of insurance into the cost of shipping. Since I do not offer free shipping on ebay it means that this will not change for me.
    Thomas Bush Numismatics & Numismatic Photography

    In honor of the memory of Cpl. Michael E. Thompson

    image
  • mrpotatoheaddmrpotatoheadd Posts: 7,576 ✭✭
    From that eBay email:

    "When appropriate, you can include the cost of insurance in your item or shipping price."
  • 123cents123cents Posts: 7,178 ✭✭✭
    With all these new rules maybe Ebay is trying to get rid of all sellers so they can have just a pictorial site.
    image
  • rbfrbf Posts: 452 ✭✭
    So what's the problem? Just factor the estimated insurance cost and add that into the total shipping price. As a seller, it's your responsibility to figure out the most secure and cost-effective way to get the shipment to the buyer.
  • mrpotatoheaddmrpotatoheadd Posts: 7,576 ✭✭


    << <i>So what's the problem? Just factor the estimated insurance cost and add that into the total shipping price. >>

    Not to mention the fact that if you're accepting PayPal payments, you're already insuring your shipments whether you know it or not anyway.
  • BochimanBochiman Posts: 25,437 ✭✭✭✭✭
    As we have heard, and as the analysts stated when ebay mentioned their quarterly statement, ebay wants to mimic an ecommerce site (amazon) and to do that, they need fixed prices, low/free shipping, and no insurance.

    To an end-user/consumer, they just want to see 1 price. Now, the difference is that ebay was built upon the 1-offs. People finding something to sell to others that may not have been easy to sell locally. They want to change that and just have the big guys there selling in bulk. We, the 1-off sellers, suffer for that.
    We, the buyers of more specialized items (like coins), suffer because sellers get driven away.

    I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment

  • airplanenutairplanenut Posts: 22,207 ✭✭✭✭✭
    Well, I suppose my shipping prices will jump up a bit, and I'm out some if I lowball it... but I suppose I profit if I miss on the high side. Stupid eBay.
    JK Coin Photography - eBay Consignments | High Quality Photos | LOW Prices | 20% of Consignment Proceeds Go to Pancreatic Cancer Research
  • intenceintence Posts: 1,255


    << <i>So what's the problem? Just factor the estimated insurance cost and add that into the total shipping price. As a seller, it's your responsibility to figure out the most secure and cost-effective way to get the shipment to the buyer. >>



    agreed.
    image
  • thisnamztakenthisnamztaken Posts: 4,101 ✭✭✭✭✭


    << <i>So what's the problem? Just factor the estimated insurance cost and add that into the total shipping price. As a seller, it's your responsibility to figure out the most secure and cost-effective way to get the shipment to the buyer. >>



    That sounds good on paper, but in real life, the SELLER gets punished by eBay once again:

    1. Their "new" Oct. policy states, "Auction-style and Fixed Price listings with "excessive" shipping will be demoted (whatever that means?). Big Brother eBay will arbitrarily decide if and when you're asking too much for shipping, and...

    2. By being forced to add insurance in with the shipping cost sellers will be neg'd and/or be given only one "star" in the shipping cost column by grumpy, cheapskate, deal-seekers who assume that your shipping charge is greedy and that all sellers should just eat the insurance charge themselves!
    image
    I never thought that growing old would happen so fast.
    - Jim
  • jsfjsf Posts: 1,889
    Why, oh why, did ebay ever let this insurance thing ever get to be such a misunderstood aspect of selling? It seems so simple, are most people so ignorant they can't grasp the idea or are they mostly all cheapskates?
  • notwilightnotwilight Posts: 12,864 ✭✭✭
    There is no such thing as free shipping and no such thing as free insurance. The buyer pays or the seller pays (or the seller self insures). Ebay wants one thing: money in ebays hands. The free shipping push is an attempt to get you to put the shipping costs in the price of the item so that ebay charges fees on them. This is an attempt to get you to put the insurance cost there too. Some percentage of sellers still offer free shipping after the big push of the past few months. Now those sellers will be incorporating the insurance into the cost of the item too.

    Ebay would like nothing better than for a $50 item that costs $8 to ship and $2 to insure to become a $60 item with "free" shipping and "free" insurance.

    The desire to mimic Amazon is pure BS. They are just looking at the short term bottom line and in my opinion they are being penny wise and pound foolish. They are ATT and an MCI will eventually show up and fees will be cut in half.

    --Jerry
  • thisnamztaken:

    the seller will get punished just as much with this change-

    buyers will leave poor feedback ratings on the shipping charge
    section (star rating system) and keep sellers from obtaining a good
    score to receive discounts off their seller fee's.

    we have been getting the 5% instead of 15% every month due
    to just missing the right score on shipping charges.

    ebay has it set up so very few sellers can receive the higher discounts.


  • cmerlo1cmerlo1 Posts: 7,920 ✭✭✭✭✭
    My postage charge includes insurance.
    You Suck! Awarded 6/2008- 1901-O Micro O Morgan, 8/2008- 1878 VAM-123 Morgan, 9/2022 1888-O VAM-1B3 H8 Morgan | Senior Regional Representative- ANACS Coin Grading. Posted opinions on coins are my own, and are not an official ANACS opinion.


  • << <i>
    Ebay would like nothing better than for a $50 item that costs $8 to ship and $2 to insure to become a $60 item with "free" shipping and "free" insurance.

    --Jerry >>



    You pretty much said it all in this sentence.
  • 19Lyds19Lyds Posts: 26,491 ✭✭✭✭


    << <i>

    << <i>So what's the problem? Just factor the estimated insurance cost and add that into the total shipping price. >>

    Not to mention the fact that if you're accepting PayPal payments, you're already insuring your shipments whether you know it or not anyway. >>



    Ya lost me. How is this so?

    And please be specific since its early.
    I decided to change calling the bathroom the John and renamed it the Jim. I feel so much better saying I went to the Jim this morning.



    The name is LEE!
  • mrpotatoheaddmrpotatoheadd Posts: 7,576 ✭✭


    << <i>Ya lost me. How is this so?

    And please be specific since its early. >>

    Because if you accept a PayPal payment and the package gets lost, the buyer gets his money back. Which means you insured the shipment one way (USPS or third-party insurance) or another (out of your own pocket).
  • 19Lyds19Lyds Posts: 26,491 ✭✭✭✭


    << <i>

    << <i>Ya lost me. How is this so?

    And please be specific since its early. >>

    Because if you accept a PayPal payment and the package gets lost, the buyer gets his money back. Which means you insured the shipment one way (USPS or third-party insurance) or another (out of your own pocket). >>



    I just knew there was sumpthin I was missin'!

    But I've never had this happen to me so I can understand why I didn't think of it.

    As for eBay, someone will come along someday and knock them off of their "almighty" pedestal. I may not be around then but it will eventually happen as they've totally messed with their golden egg laying goose.

    BTW, they get a 3% cut of all costs (including shipping & insurance) when folks pay with paypal anyway since paypal doesn't really care what the money was for, they only know that someone sent it to you.
    I decided to change calling the bathroom the John and renamed it the Jim. I feel so much better saying I went to the Jim this morning.



    The name is LEE!
  • ziggy29ziggy29 Posts: 18,668 ✭✭✭


    << <i>The insurance option creates the perception that buyers need to purchase shipping insurance as a protection on eBay, an experience they're not accustomed to on other ecommerce sites. In fact, sellers have always been responsible for their items until they arrive safely in their customers' hands. >>


    Sounds like eBay is simply paraphrasing what we've said over and over again: Insurance protects the seller, not the buyer.
  • telephoto1telephoto1 Posts: 4,928 ✭✭✭✭✭
    Mr potatoheadd nailed it. Due to the potential for chargebacks, sellers are on the hook whether they build in a charge for insurance or not- so it's just a matter of whether you want to be covered or pay it yourself when there's a problem. We send insured priority mail or registered mail depending on value and insurance has always been on us. Insurance protects the seller, not the buyer. Some guys self-insure and build in 50c/$1 or so into the price of each item sold, thinking that with volume they'll cover any loss... and that's OK- until you get nailed on a high value item, that is.

    We've been experimenting with free shipping of late; sometimes it will get us more bids, which (usually, but not always) offsets the insurance cost -and sometimes the shipping as well. I know it also means more ebay fees, but that's inevitable anyway, might as well get used to it. It's still better than eating the extra fees on a floor auction where you are exposed to a tiny fraction of the potential bidders, or going to an ebay competitor where your stuff sits for a month or longer with no traffic, much less any bids. Some people like TT but that only works for slabs, and TT is also starting to get a rep as a place where people dump their so-so items, or their mistakes i.e., overgrades, etc. I'd be interested in opinions on that.

    Flaws and all, even though they are nowhere near what they once were, ebay is still the 800 lb. gorilla of the online auction world, unfortunately. If they had any real competition, I'd likely try them- but, for now, at least... they're still the best choice (for some things, anyway). jmho image

    RIP Mom- 1932-2012
  • mrpotatoheaddmrpotatoheadd Posts: 7,576 ✭✭


    << <i>The insurance option creates the perception that buyers need to purchase shipping insurance as a protection on eBay, an experience they're not accustomed to on other ecommerce sites. >>

    Buyers pay for insurance on other ecommerce sites, too. It's just not broken out as a line item for them to see. Same thing as cc merchant fees- they're built into the item price or the shipping somehow, even if the buyer doesn't know exactly where. Unless a business is losing money, *all* expenses (even ink for the printer) are paid for by the buyer.

    I don't know where this idea of "free shipping" comes from (it's obvious a lot of buyers haven't thought the whole thing through) but I suppose it does sound better than calling it "hidden cost shipping", doesn't it? image
  • telephoto1telephoto1 Posts: 4,928 ✭✭✭✭✭
    I've done ebay 10 years and have always been amused how people squawk about $4.80 priority mail plus $1.75 insurance for a $50 item (that's actual USPS cost btw, nothing added) but when they buy a $50 item elsewhere they get charged $8-10 or more for "S&H" on most any other venue and happily pay it... yet they think ebay sellers should ship for free and not add it into the price somewhere...?

    Oh, and here's another fyi... how much do you think TPGs make on those back end "return postage/insurance" costs that we all happily pay to get our coins back? Pay attention to how your submissions are returned and the cost thereof. One TPG (hint: 5 letter acronym) is now returning things fedex unless registered is requested (yet still charging you registered rates).

    RIP Mom- 1932-2012
  • mrpotatoheaddmrpotatoheadd Posts: 7,576 ✭✭


    << <i>I've done ebay 10 years and have always been amused how people squawk about $4.80 priority mail plus $1.75 insurance for a $50 item (that's actual USPS cost btw, nothing added) but when they buy a $50 item elsewhere they get charged $8-10 or more for "S&H" on most any other venue and happily pay it... yet they think ebay sellers should ship for free and not add it into the price somewhere...? >>

    Well, of course. Didn't you know? eBay sellers aren't real businesses, so it's wrong for them to charge like one. Silly as it seems, that's what I've seen people write. But then, I'm suspecting there are a lot of buyers out there who are unclear on the concept and eBay appears to be in no hurry to disabuse them of their notions.
  • telephoto1telephoto1 Posts: 4,928 ✭✭✭✭✭
    Well, of course. Didn't you know? eBay sellers aren't real businesses, so it's wrong for them to charge like one.

    How true...and it also seems that coin dealers in general are looked upon with a similar mindset as well.

    RIP Mom- 1932-2012
  • Thats why we need a "CRAIGS LIST FOR COINS"
    "This ain't Dodge City an you ain't Bill Hickock."......Matthew Quigley
  • The whole optional insurance thing never made sense to me anyway... The seller is liable regardless.
  • <<Thats why we need a "CRAIGS LIST FOR COINS" >>


    BST???
  • Coll3ctorColl3ctor Posts: 3,343 ✭✭✭


    << <i>

    << <i>So what's the problem? Just factor the estimated insurance cost and add that into the total shipping price. As a seller, it's your responsibility to figure out the most secure and cost-effective way to get the shipment to the buyer. >>



    agreed. >>






    Yeah, add it on to the shipping cost so the buyer can give you a lower score for shipping and drag down your DSR rating, maybe even leave a negative feedback.

    You guys just don't get it image
  • Coll3ctorColl3ctor Posts: 3,343 ✭✭✭


    << <i>The whole optional insurance thing never made sense to me anyway... The seller is liable regardless. >>






    Yes but is was a plus for the sellers if the buyer would pay for it. eBay keeps cramming it in the azz of the seller image
  • notwilightnotwilight Posts: 12,864 ✭✭✭


    << <i>The whole optional insurance thing never made sense to me anyway... The seller is liable regardless. >>



    The optional insurance, on my auctions, is to make the buyer feel better. I self insure but I offer the optional in case a buyer really needs to pay for it to feel better. About 1 in 20 does.

    With the new system I hope ebay words it in a way that these buyers feel comfortable. --Jerry

  • I find that the the only buyers that request insurance are those that buy a $30 or so coin. The $300-$600 buyers know that I'm on the hook for delivery....
  • notwilightnotwilight Posts: 12,864 ✭✭✭


    << <i>I find that the the only buyers that request insurance are those that buy a $30 or so coin. The $300-$600 buyers know that I'm on the hook for delivery.... >>



    very true.
  • BECOKABECOKA Posts: 16,961 ✭✭✭
    Personally I like this. I always thought it was odd to make insurance optional when the responsibility of getting the item to it's destination was on the seller no matter what option the buyer chose.
  • mrpotatoheaddmrpotatoheadd Posts: 7,576 ✭✭


    << <i>I always thought it was odd to make insurance optional when the responsibility of getting the item to it's destination was on the seller no matter what option the buyer chose. >>

    I'm guessing it was just a holdover from the days when eBay was just a venue for selling stuff and didn't dictate policy to sellers. As long as both parties agree, there is nothing either illegal or immoral about having a policy for arranging shipment such that the buyer accepts responsibility for loss or damage in transit.
  • thisnamztakenthisnamztaken Posts: 4,101 ✭✭✭✭✭


    << <i>thisnamztaken:

    the seller will get punished just as much with this change-

    buyers will leave poor feedback ratings on the shipping charge
    section (star rating system) and keep sellers from obtaining a good
    score to receive discounts off their seller fee's.

    we have been getting the 5% instead of 15% every month due
    to just missing the right score on shipping charges.

    ebay has it set up so very few sellers can receive the higher discounts. >>



    You're right shark! That was a typo on my part. I meant to write "the SELLER gets punished". I just corrected my original post.
    I never thought that growing old would happen so fast.
    - Jim
  • thisnamztakenthisnamztaken Posts: 4,101 ✭✭✭✭✭


    << <i>Ebay wants one thing: money in ebays hands. The free shipping push is an attempt to get you to put the shipping costs in the price of the item so that ebay charges fees on them. This is an attempt to get you to put the insurance cost there too. Some percentage of sellers still offer free shipping after the big push of the past few months. Now those sellers will be incorporating the insurance into the cost of the item too.

    Ebay would like nothing better than for a $50 item that costs $8 to ship and $2 to insure to become a $60 item with "free" shipping and "free" insurance. --Jerry >>



    Yep, you summed it up correctly Jerry! As always, just follow the money trail and you'll find the reason for the action/"new" policy.
    I never thought that growing old would happen so fast.
    - Jim
  • RussRuss Posts: 48,514 ✭✭✭


    << <i>I've always built the cost of insurance into the cost of shipping. >>



    Ditto. This is a non-issue.

    Russ, NCNE
  • RussRuss Posts: 48,514 ✭✭✭


    << <i>By being forced to add insurance in with the shipping cost sellers will be neg'd and/or be given only one "star" in the shipping cost column >>



    I've always done it this way, and out of 3213 transactions over the last 12 months, I have a whopping 4 low ratings in shipping and handling cost.

    This is a non-issue.

    Russ, NCNE

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