Parcel missing in Chicago, Buyer wants refund...

[justbrostrading]

Hi there! We currently have a parcel stuck in Chicago which was last scanned July 13th. The buyer is now, understandably, asking for a refund. I opened a service ticket with Canada Post 2 weeks ago.

A few questions.... I understand that Ebay will require us to refund the buyer, however in that case, even with Canada Post's insurance of $100, we're still out the value of the item ($130) PLUS $30. If we had asked the Buyer to file the claim, would Canada Post have refunded them directly? In that case, the buyer is reimbursed AND we don't lose the value ($130) of the item. 

If the parcel shows up AFTER it's been considered Lost, will it be returned to Sender, or will the buyer then receive a free item?

Also, Canada Post, during their "investigation" has had trouble contacting the buyer. Will this affect the refund process?

I realize that only 1 missing package out of thousands we've shipped is truly amazing, however it's still frustrating. 

[marnotom!]

As @reallynicestamps has said, you’re the one who’s on record for “purchasing” the insurance, so you’re the one who should make the claim.

Keep in mind that even if the buyer could file a claim for the insurance, there would be no record with eBay for them receiving a refund and, in theory at least, they could still file a claim of non-receipt against you through eBay or PayPal and you’d be required to return the monies they paid you.

The way I see it, it’s usually preferable to get something for the item rather than seeing it gathering dust somewhere. Not every sale may be a profitable one, but you can’t exchange a widget on a bookshelf for a tank of gas. 😁

[reallynicestamps]

Yes you are stuck with the refund.

Yes you can try to claim on the insurance.

On your loss however, I disagree.

The value of the lost item is not the $130 you sold it for plus the $30 in shipping costs or $160.

It is your purchase price for the item plus your eBay and Paypal fees (some of which will be refunded. ) and still the shipping costs.

Which would be less than $160.

No, you bought the insurance, which insures that you are refunded the money you paid Canada Post.

The buyer only gave you a payment which covered the item plus shipping. Insurance is for the one who directly paid for the insurance.

If the shipment turns up later, it will be directed to the address on the package, the buyer.

You can keep an eye on the tracking and when it shows delivery you can re-invoice the buyer using Paypal's Invoicing service and politely remind the buyer that he got something he did not pay for.

Some sellers adjust that invoice for the buyer's disappointment.

[justbrostrading]

The $160 I arrived at, is the $30 which insurance won't cover plus the $130 value of the lost item. 🙂 We will be refunded the $22 shipping cost plus $100 insurance, but will still be out the item and value over the $100 insurance = $130 plus $30. Even with the CP refund of $122, it will still have cost us $8-ish for USPS to lose our parcel, as shipping was free and came out of the $130 sale price. 🙂 It would be nice if Canada Post, since they're dishing out $122 anyway, would pay it directly to the buyer, in which case we would then owe the buyer $8 more, making the buyer whole. Thanks for the suggestion to keep an eye on tracking too.

[reallynicestamps]

But did you PAY $130 for the item or did you SELL it for $130.

Value is a very flexible idea.

I sell 50c stamps at 100 in a packet for $40.00 including shipping.

Canada Post accepts those as worth 50c to mail a letter.

And I did not pay even $40 for them.

What then is the value of those stamps?