Item not received case but buyer selected cheap shipping option

[ajdornier]

Looking for advice.  I sold an item and provided two shipping options on the invoice - one with just small packet with no tracking and insurance, and the other a small tracked packet with insurance.   I've had success using the former and I think it also helps bring down the cost for the buyer.  I do provide comments about the difference of the two and therefore I believe the buyer assumes the risk of the loss if they opt for the cheaper shipping option.

i just had my first case about item not being received using this option.  I initially responded to say that since they selected the cheaper option that the risk was on them, and to propose a fair solution, but they responded that they want a replacement (which I don't have) or a full refund.  I replied that I didn't think this was fair since again, it was the buyer's decision to go with the cheaper shipping.  So I proposed to ship another item, or refund half the total transaction cost.  I'm hoping this is a learning opportunity for both me and the buyer (I.e. They should've selected the tracked option, and I will not offer a non-tracked option again in the future).

That's where it's at.  If they still insist on a full refund, should I get eBay to intervene?  The cost of the transaction is $75, so it's not like we're talking something that will break the bank, but I am going on principle here.  I don't think the buyer is lying since they have a 3000+ 100% positive rating.

Thanks for your advice!

[dutchman48]

Refund and write it off as a business loss. What you have in your terms means absolutely nothing.

If you don't have tracking, you will never win a INR case.

If you allow buyers a choice, human nature says they will generally pick the cheapest. Buyers are guaranteed to get their item or refund.

What was the sale for, where was it sent to, and how long has it been ?

[momcqueen]

A high feedback count does not guarantee honesty. Look at how many sellers with 12,345 feedback have also 96 per cent feedback. 

If you ship without tracking that shows Delivered to the buyer address, you will lose each and every Item Not Received case, period. There is no negotiating here, the buyer accepts no risk choosing an untraced method, only you do. It's the seller's choice where to ship and whether or not to mitigate losses with tracking. If a buyer cannot afford to pay for tracking, they cannot afford to buy it. I liken it to rolling my shopping cart full of groceries into the street, and walking away, but hoping it finds its way into my home instead of loading it into the car and making sure it arrives safely. 

If you feel strongly about offering cheap postage and don't care about the danger of Late Shipment Reports, at least take third-party insurance on those orders. U-pic and Shipinsure are popular choices but there are rules and regulations to follow with them which you will have to investigate in advance if you ever want to make a successful claim.  

[pierrelebel · Accepted solution]

In similar circumstances, I would typically send this note to the buyer (regardless of his/her feedback rating, it is irrelevant)

"I am truly sorry to read the parcel sent to you on (date)  has been delayed in the postal systems and has not reached you yet.

I will ask PayPal today to provide a full refund to your account, including shipping charge.

Eventually, when the parcel arrives, please let me know and I will send you a PayPal invoice allowing you to make payment again.

Sorry for the inconvenience caused by the postal delays."

At no time would I ever consider blaming the buyer for selecting the shipping method.  That is my problem as a seller.  It is my responsibility to get the goods to the buyer (on eBay or anywhere else for that matter).

And if the parcel is truly lost, it is a $75 "cost of doing business".  Look at the big picture.  On average, less than 1% of all parcels will get lost.  If you sell $10,000 a year, expect losses of less than $100 on average.  It is cheaper than over insuring.

Good Luck

[ajdornier]

It was just for a blu-Ray (albeit more expensive than a normal one), and it was shipped out June 20 to a house address (not a PO or apt) in the US.

Lesson learned, I guess....I'll just discontinue offering a no frills shipping option moving forward.

[edubb101]

Shipped June 20th and today is July 21.  There were a couple of holidays during this time frame on both sides of the boarder.  Maybe it was held up or is held up at customs?  I would do what Pierre says but see if the customer wouldn't mind waiting 1 or 2 more weeks at the most?  The small packet service for Canada Post is pretty reliable to the USA but I have had one package take 6 weeks for whatever reason and have also lost 1 package.  That is it and I've been selling since 2005.  Overall I think you can still offer this service and chalk this transaction up to the cost of doing business/bad luck.  Hope all works out well in the end.

[ricarmic]

If it helps, here are my "form letters" I've used for years, customized as necessary, I've had a fair number of people contact me and pay again after it does eventually arrive....

http://community.ebay.ca/t5/Seller-Central/RICARMICs-INR-where-is-my-package-updated-2016-form-lette... 

Feel free to use whatever is of use.....

[femmefan1946]

Lesson learned, I guess....I'll just discontinue offering a no frills shipping option moving forward.

Why?

It's one loss.

And it may actually be lost. Or held up in the mailstream.

Sometimes the customer is right.

Like pierrelebel, when he was more actively selling, I rarely use tracked mail.

Most people are honest.

How many of your customers opt for the higher priced service?

How many of your customers have opened Disputes?

Your customers may be different than mine (books, sewing patterns, postcards, stamps) but I've been selling by mail for over 30 years and losses are vanishingly rare.

You may wish to check the experiences of your fellow CD/DVD sellers, like musicyouneed, on that.

Using untracked services gives you a slight price advantage in your customer's total cost. And reduces your own costs on every shipment.

I would not, of course, mention to your customers that you use untracked shipping.

BTW-- Have you heard the good news about Cookie Jar Insurance?

It is, of course, your business and your choice.

[thestuffofchris]

As a part-time seller of personal media (CDs/DVDs/games), I can verify that the problems with untracked shipping are rare. In fact, in the years I've been selling online (about a decade, on and off) and been using mostly untracked shipping (Lettermail in Canada, Light or Small Packet to US/International), I haven't had one go missing. Not one. Late a few times, but they all got there.

[hlmacdon]

Unless you are in a high fraud rate category, loss rates should be around a fraction of a percent. That being said with higher priced items you may want to work part of the tracked packet rate into your listing price if you have room and offer that. You also have an option of using third party insurers as there are ones that will insure Canada Post non-tracked shipments so long as you get proof of mail acceptance. For that I used to print a copy of the shipping label and get the post office to stamp that. I found that useful to also provide to buyers as proof their item had been mailed, which cut down on some of the fear factory panic messages that buyers sometimes engage in.

[reallynicestamps]

I agree that 'smoke and mirrors' are useful in calming unnecessary buyer fears.

After all they are sending money to some stranger they met on the internet.

I put the date of shipping in my FB which I leave when the item is packed and ready to ship.

And again-- Cookie Jar Insurance.

Adding a few pennies to each asking price as a self-insurance premium against the very rare loss or damage claim.

When there is a claim, pay from the pennies in your virtual Cookie Jar.

It does not matter who is right or wrong.

Most CJI users find they make money on the practice, just like a 'real' insurance company, especially if they have included the money NOT spent on third party premiums.