Insurance Responsibility etc

[auskywalka]

Hi guys,

I don’t sell much on eBay but am selling something at the moment that could sell for the better part of $1000. There’s also a good chance it will be sold to an international buyer.

I chose a signature option for both local and international shipping but it seems this may not insure the item for it’s total selling price. Am I right in saying the cost to insure will depend on the total selling price? If so how do I add this to the auction?

Can I put the responsibility to insure on the buyer? So if the item is lost etc then it’s their problem & not mine. If they make a PayPal claim then who gives them their refund?

Thanks for your help.

[davewil1964]

A buyer is covered by buyer protection.

Insurance is for the seller's protection.

If you don't know how much it will sell for make a guess and include the cost of that in the postage and handling price. If it sells for more the extra cost of insurance is not going to break you (as it is a small percentage of the extra you get); if it sells for less you are a couple of bucks in front.

If a buyer makes a successful claim, Paypal/eBay will take the money from the seller.

You cannot put the onus on the buyer. Whilst Australian law considers an item to be delivered when it is posted (with caveats), Paypal might, but eBay requires proof of delivery. That's for loss. For damage, the onus is on the seller to package in a way that the item cannot be damaged.

[digital*ghost]

Anything that is valued at $750 or more (including the postage cost), must have signature on delivery added in order to be eligible for seller protection, from both eBay and PayPal - these are the two options a buyer can choose to dispute a transaction with, but while some requirements are the same, the key difference with eBay is that they want proof of delivery for items, while PayPal wants proof of shipment in cases for item not received (this means all of the added features won't help if the item is not actually delivered to the buyer, in an eBay case, however if they open a PayPal case, as long as you retain all the postage documentation that shows the tracking number, lodgement receipt, and delivery address, you should be covered. Just be aware that most buyers will use eBay as their first port of call if there's a problem). 

Obviously SOD would be needed due to the value, and I would still purchase insurance for that extra peace of mind (for international parcels, it's disgustingly expensive compared to domestic insurance - $9.60 for the first $100 in value, and I think $2.50 (or thereabouts) for each additional $100 in value, compared to $1.50 for domestic insurance, per $100 - the kicker is, when sending internationally, Aus Post claim that the insurance only covers the package while it's in their possession  ). 

You can't add these costs on to any pre-existing quotes, though I note that your listing is the one where postage is not specified, so if you want to quote for a fully insured, SOD service, then you would be able to put that as the postage cost when the auction ends and you issue an invoice (I'd be wary of issuing invoices that are higher than any previous quotes you've already provided if the winning buyer has already asked for a quote, though). If you want to add new information to the description, though, you can do that (I don't really use this option, so I can't recall specifically how to access it, but it may be in the dropdown menu next to the item, or on the listing page itself - hopefully someone else who knows will post). 

[bloodlust_03]

it's the buyer's responsibility to pay for shipping insurance..  not the seller.

[digital*ghost]

The reason people will say that tracking and insurance is for the seller's protection is because of the way eBay and PayPal disputes work.

As mentioned, the buyer will get a full refund via eBay if the item doesn't have tracking that shows it was delivered, regardless of whether it was insured or not, so in order for a seller to not be out of pocket for that expense, they need to rely on insurance for reimbursement - eBay / PayPal cover the buyer, so the seller has to take measures themselves to ensure they are covered, as well. Who pays for it is irrelevant in that scenario (meaning, you can't say to eBay or PayPal that the buyer didn't opt to pay extra for insurance, so it's their loss. This means if you want full coverage for loss in transit etc, you add insurance whether it's charged to the buyer or not). 

[*tippy*toes*]

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@bloodlust_03 wrote:

it's the buyer's responsibility to pay for shipping insurance..  not the seller.

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You really have no idea, do you? You've proved it with that statement.

Next?

[auskywalka]

Insurance is only covered while in possession of Australia Post?!

So if I send something to the USA & the package disappears after Australia Post hand it over to the US post service there is no recourse?

Can you claim with the foreign post service?

Guessing it would be capped anyway?

Do AP help file a claim?

Can you purchase insurance for the foreign PO beforehand?

No wonder people don’t want to ship internationally. 

[springyzone]

Those are really good questions. I don't know the answers although trying to claim through a foreign post service would be a pain I would imagine.

It might be worth starting a new thread though if you want some answers about postal insurance as this is a really old one and digital ghost, the one you are responding to, isn't on here regularly at the moment.

[eol-products]

Aust Post will be liable if you paid them the insurance payment. That is why there are some countries that they will not cover you for insurance. Just remember there are many areas that are not covered and damage if not packed correctly or if the buyer say its not delivered but tracking says was left in a safe place.

I sell international if the selling price is more than what I would get here and is worth the extra risk. In saying that I limit which countries and what I would sell so lowers the risk. I would not a sell a laptop to south america as an obvious one.

[christoff007]

I once posted something to South Africa and it was lost there somewhere. I had tracking showing it was never delivered. Australia post reimbersed in full, including shipping costs