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An in-depth analysis of eBay Postage Policies and Costs
halfcentman
Posts: 1,498 ✭✭✭
Ladies and Gentlemen,
Some of this might seem a bit overkill, but it is the only way my brain works.
I have been on eBay for 10 years. In the first 9 years and 10 months, I only had a problem with three packages. In the last two months, I have had a problem with three packages, two of which I had to eat out of my "insurance fund." Essentially, my insurance fund is an account that I put the amount of money into that it would cost me to insure my packages that are under $500.00. If a package was not that was not insured, I would take the money out of that account and reimburse the buyer.
The reason why I did this was because USPS Insurance is a horrible deal. From having 10 1/2 years as a professional gambler, and an extensive background on risk/reward analysis, the "fund" has made me money over the long run. However, there is a changing climate within the inner workings of Post Offices, and that is leading to so-called anomalies that really aren't.
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After speaking to an eBay CS Supervisor, I was told that unless you ship a package Registered Mail, you must have Signature Confirmation. Keep in mind that the "blue-label" insurance is not trackable, but the Delivery Confirmation that comes along with it is, as long as you are sending the item out as a "package." Even though blue-label Insureds have to be signed for if they are over $200.00, that signature is not easily retrievable. Therefore, eBay wants the Signature Confirmation.
In addition, I was thinking of coming up with a new website called "deliveryconfirmationisuseless.com." That's because it is. All it does is tell you the item was delivered, not to whom. Hence, you have no record or proof that the individual to whom you sent the item got the item. If it were left in a mailbox, someone could go into the mailbox and take it - but the item will show up as being "delivered."
For the first time ever, my insurance fund was in the red. I do not chalk this up to bad luck. Therefore, I have drastically changed my eBay policies with regards to shipping both for me and my consignors.
I would like to share some of the numerical analysis and break-even points to illustrate the best way to ship packages so your butt is covered. All examples are for Domestic shipping.
Let's say that are shipping a coin insured at $1K, and the total package weighs three ounces:
REGISTERED MAIL: The coin can go into a #10 envelope with a corrugated mailer. Your total costs with Registered Mail will be $0.98 + $14.45 = $15.43.
INSURANCE: You will need Signature Confirmation, and you will have to ship the item as a "Package." Too many people attempt to ship items in slightly larger, paper envelopes to have them qualify for packages. This is a huge turn-off for me. Do yourself a favor and buy some #0 Padded Mailers (editorial over). In any event, the costs for this are as follows (assuming on-line postage from USPS website).
$1.56 + $1.95 + $11.70 = $15.21
At this point, it's up to you how you want to ship it. At $1,100.00, Insurance is better by $0.57. At $1,200.00 and higher, Registered becomes the better deal.
Of course, you need to keep in mind what you are shipping (raw, slabs, sets, etc.) and how heavy it is. This is just an example.
I will be exploring another topic regarding shipping (that's more qualitative) tomorrow.
Thanks for your time.
Greg Heim
Some of this might seem a bit overkill, but it is the only way my brain works.
I have been on eBay for 10 years. In the first 9 years and 10 months, I only had a problem with three packages. In the last two months, I have had a problem with three packages, two of which I had to eat out of my "insurance fund." Essentially, my insurance fund is an account that I put the amount of money into that it would cost me to insure my packages that are under $500.00. If a package was not that was not insured, I would take the money out of that account and reimburse the buyer.
The reason why I did this was because USPS Insurance is a horrible deal. From having 10 1/2 years as a professional gambler, and an extensive background on risk/reward analysis, the "fund" has made me money over the long run. However, there is a changing climate within the inner workings of Post Offices, and that is leading to so-called anomalies that really aren't.
--------------
After speaking to an eBay CS Supervisor, I was told that unless you ship a package Registered Mail, you must have Signature Confirmation. Keep in mind that the "blue-label" insurance is not trackable, but the Delivery Confirmation that comes along with it is, as long as you are sending the item out as a "package." Even though blue-label Insureds have to be signed for if they are over $200.00, that signature is not easily retrievable. Therefore, eBay wants the Signature Confirmation.
In addition, I was thinking of coming up with a new website called "deliveryconfirmationisuseless.com." That's because it is. All it does is tell you the item was delivered, not to whom. Hence, you have no record or proof that the individual to whom you sent the item got the item. If it were left in a mailbox, someone could go into the mailbox and take it - but the item will show up as being "delivered."
For the first time ever, my insurance fund was in the red. I do not chalk this up to bad luck. Therefore, I have drastically changed my eBay policies with regards to shipping both for me and my consignors.
I would like to share some of the numerical analysis and break-even points to illustrate the best way to ship packages so your butt is covered. All examples are for Domestic shipping.
Let's say that are shipping a coin insured at $1K, and the total package weighs three ounces:
REGISTERED MAIL: The coin can go into a #10 envelope with a corrugated mailer. Your total costs with Registered Mail will be $0.98 + $14.45 = $15.43.
INSURANCE: You will need Signature Confirmation, and you will have to ship the item as a "Package." Too many people attempt to ship items in slightly larger, paper envelopes to have them qualify for packages. This is a huge turn-off for me. Do yourself a favor and buy some #0 Padded Mailers (editorial over). In any event, the costs for this are as follows (assuming on-line postage from USPS website).
$1.56 + $1.95 + $11.70 = $15.21
At this point, it's up to you how you want to ship it. At $1,100.00, Insurance is better by $0.57. At $1,200.00 and higher, Registered becomes the better deal.
Of course, you need to keep in mind what you are shipping (raw, slabs, sets, etc.) and how heavy it is. This is just an example.
I will be exploring another topic regarding shipping (that's more qualitative) tomorrow.
Thanks for your time.
Greg Heim
0
Comments
Sent a $1500.00 coin once for about $23.50 or so and customer had it withen twenty four hours.
I'm trying to sell something that will cost $5.11 media mail and the most I can charge is $4 - what's up with that??
Appreciate the analysis - overseas is even worse!
1. All shipments (including Registered US mail) require on-line, viewable proof of delivery in order to be covered by their seller protection.
2. Proof of delivery has to be delivery confirmation on items under $250 or signature confirmation on items over $250. They don't specify which is required for items that are exactly $250. Proof of delivery proves to ebay/paypal that delivery has been made to the correct address. They could care less "who" signs for it.
3. Seller has to be able to prove delivery to the address shown on the paypal "details" page. There is no requirement to prove delivery to a specific person. The signature requirement proves acceptance by a person (can be any person as far as ebay/paypal are concerned) at a specific address. This address is also viewable with the signature when accessed on-line.
Ebay/Paypal could care less about insurance. They hold the seller responsible for getting the ebay purchased item to the address shown on the paypal details page. Insurance only protects the seller. Buyer is protected by ebay/paypal buyer protection and only has to open a dispute on a lost item or damaged item to get their payment back from the seller.
While delivery confirmation requires no signature, ebay/paypal do take the post office's word that the item was delivered to the address. Seller will when a dispute over this every time, as long as the post office says (via delivery confirmation) it was delivered .
While signature confirmation does require a signature, again, ebay/paypal don't care who signed for it. They do care that there is on-line viewable proof that someone at the corrrect address accepted the shipment with a siganture.
I find Registered mail is cheaper (and safer) for insured items over $750 in value. Anything less than $750, I send priority or first class with an on-line shipping lable. While on-line shipping is limited to $500 insurance, I self insure the difference. Also note that Registered mail can be shipped Priority Flat Rate if you are shipping heavy items. Just make sure the Priority Flat Rate box is sealed at all seams with paper tape.
On items over $750 that go out registered, I use the "electronic return receipt" feature that is purchased at the counter with no required paperwork or form to be filled out. It cost less than the "signature confirmation" that does require a form to be filled out and is accepted by ebay/paypal as viewable on-line signature proof of delivery.
THE MOST IMPORTANT THING ABOUT SELLER PROTECTION: Do not ship until paypal "details" page says "OK to ship" and "eligible" for seller protection. Sometimes the details page will not say this immediately, especially if a payment is under review by paypal. Don't jump the gun and ship. I once had a details page that didn't update to say "OK to ship" so I called paypal. I was told the page would update automatically on the next "cycle" and that it was OK to ship. I requested an email from the paypal rep stating this and eventually had to get to a third level supervisor at paypal to get my $2800 back when the buyer did a chargeback after receiving the item. The details page never did update to say "OK to ship" and the paypal rep was in error when he told me over the phone and in the email that it was OK to ship. Only thing that saved me, after a long fight with paypal, was the email from paypal.
Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat
<< <i>How about ebay not allowing you to charge enough??
I'm trying to sell something that will cost $5.11 media mail and the most I can charge is $4 - what's up with that??
Appreciate the analysis - overseas is even worse!
Simple ship for free just add the cost into the starting bid. That way eBay can charge their fees on the shipping to, that's the way they now stack the deck.
<< <i>I find customers like Express mail when buying coins over a thousand dollars. Two days and done and insurace is at the USPS lowest rate.
Sent a $1500.00 coin once for about $23.50 or so and customer had it withen twenty four hours. >>
There is only one flat rate option with Express and it is the cardboard envelope. Also insurance is capped at $5000 and I believe there is a restriction on insuring "bullion." I wish they would come out with Express Flat Rate boxes such as they have done for Priority Mail.
Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat
<< <i>
<< <i>I find customers like Express mail when buying coins over a thousand dollars. Two days and done and insurace is at the USPS lowest rate.
Sent a $1500.00 coin once for about $23.50 or so and customer had it withen twenty four hours. >>
There is only one flat rate option with Express and it is the cardboard envelope. Also insurance is capped at $5000 and I believe there is a restriction on insuring "bullion." I wish they would come out with Express Flat Rate boxes such as they have done for Priority Mail. >>
If they had flat rate express boxes it would be almost all the only way I would ship.
And I really like the tracking on them seems to almost be real time.
<< <i>Your right but I have only shipped one package that hit their insurance limit. And coins in the safty mailers or bubble pack mailers work fine in the flat rate envelope.
And I really like the tracking on them seems to almost be real time. >>
I often send slabbed gold coins in the express flat rate envelope, it's only about $5-6 more than registered. Of course it helps to put them in a bubble wrap envelope first for protection.
Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat
Thanks for the detailed analysis. I agree about the pointlessness of Delivery Confirmation.
It was my understanding that to be covered by the eBay seller protection policy you must have Signature Confirmation even for Registered Mail packages. It sounds like the eBay CS Supervisor said this is not the case, however, it this policy documented?
<< <i>Halfcentman,
Thanks for the detailed analysis. I agree about the pointlessness of Delivery Confirmation.
It was my understanding that to be covered by the eBay seller protection policy you must have Signature Confirmation even for Registered Mail packages. It sounds like the eBay CS Supervisor said this is not the case, however, it this policy documented? >>
I had one, registered package get obliterated off of eBay. The signature from the "Reg" receipt was sufficient. It's overkill to have both. It just adds to the costs.
One of the other guys mentioned something about Express Mail. Although I have not done the break-point analysis on that, EM is an excellent option as well. Thanks for the suggestions and other input.
Greg
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
I for one appreciate well thought out posts. I write a lot to myself too!
FWIW
I figure shipping costs into sell price of item.
*Less than $249.99 - 19 cent delivery confirmation - savings on not insuring goes into the "kitty" -
*$250-999.99 - signature confirmation and hold breathe - savings on not insuring goes into the "kitty" -
*$1k to 5k - express insured.
*over $5k I dunno, armed guard?
my shipping costs are 4% of my gross sales.
BTW.. I should add, I have had 2 problems with shipping . Both had the blue "steal me" tags on them. go figure. Never had a problem with lost packages.
Paypal Seller Protection FAQs
Government is the great fiction through which everybody endeavors to live at the expense of everybody else. - Bastiat