Self insurance (cookie jar) RICARMICs statistics to 2017

[ricarmic]

I'm using this as a distraction to finishing off my year end book keeping....which I hate doing very much....

Notes:

-I live in the stamp collectors world, so these results are all from postage stamp selling categories

-I sell only on .COM, I ship worldwide, and I have no blocks on buyers (but I do maintain the blocked buyer list)

-this includes items lost to "crime" as well. "Crime" is defined here as situations where I think people purposefully buy with bad echeques, or claiming lost in transit but that is only from using my spider senses.

-I sell a lot of stuff internationally, over 35% of my packages go outside North America

-the numbers below are specific to eBay sales. As I mentioned in other threads, I experience losses both real and "crime" related via the other online venues I use so package loss rate is not only an ebay buyer issue.

It is also worth noting that for 2017 I continued to have 3 types of insurance:

1. Self insurance for the small stuff

2. Canada Post for the first $100 only when items are sent expedited, expresspost, or trackable (I have begun using tracked shipping more frequently moreso because I believe buyers expect it for larger purchases, or when my spider senses are tingling which seems to happen more now!)

3. 3rd party insurer (Hugh Wood) for stuff over $200

(Did not utilize 2 or 3 in 2017 (or 2016 either))

2017 results

% of shipments = .0071 = under 3/4 of 1% of packages lost, so about 1 in 140 packages are lost

(all lost packages were  not tracked)

% of sales = .0044 = under 1/2 of one percent loss rate $ wise

13 items "lost"*** in 2017 Australia,Canada(5),Colombia,Italy,Russia(2),USA(3*)

   3 believed to be lost to "crime" (Canada,Russia(2) based on spider senses)

   10 lost and unrecovered(so far). 1 Found later** Canada, 2 arrived later & repaid Colombia, Italy

   3 repaid (Buyer found or advised delivery later and repaid: Canada, Colombia, Italy)

*2 of the USA losses were to USA forwarding companies (1 buyer from Paraguay, 1 buyer from China)
** on return from vacation, lot was lost in a pile of junk mail which was not dealt with and found for a few weeks
*** 1 lost lot to Canada and 1 to Italy were lost to long time, regular buyers who have continued to purchase regularly since AOK.

Things I did in 2017.

-nothing new it seems in 2017 different from 2016

2016 results

% of shipments = .004 = under one half of 1% of packages are lost, so about 1 in 250 packages are lost

% of sales = .0024 = about one quarter of 1 percent loss rate

   8 "lost" in 2016 USA(2),Canada,India,Oman,Russia,Australia,Bolivia

   1 believed to be lost to "crime" (based on spider senses)

   7 lost and unrecovered(so far). 1 USA advised arrival later and repaid

   1 repaid (Buyer advised delivery later and repaid: USA)

   1 odd situation, other USA buyer convinced me to unblock them and they successfully purchased 3 more items

Things I did in 2016.

-I China & Brazil require trackable shipping, ie lowest shipping $17.50 regardless item size. Number of buyers especially China increased over the year, they began buying batches of stuff to make the postage palatable.

-decided against adding extra custom shipping costs to Russian buyers (not tracking) so far, am also considering doing the same for others

-I sell in US$ so the lower $C rate gives me more room to make packages trackable, which I’ve been doing more to new buyers and/or buyers in scary countries

-I did change my flat rate shipping to Standard Shipping (outside the US) to add a few more days to the est delivery date

 2015 results

% of shipments = .0097 = about 1% of packages are lost, so about 1 in 100 packages are lost

% of sales = .0090 = about 1 percent loss rate

   13 "lost" in 2015 Russia(5) Belarus, Canada, China, French Polynesia, Kuwait, Pakistan, South Africa, Sri Lanka

   3 believed to be lost to "crime" (Russia, ordered 3 separately close together)

   9 lost and unrecovered(so far)

   1 repaid (Buyer advised delivery later and repaid: Canada)

Things I did in 2015.

-I changed China and Brazil to custom shipping requiring trackable shipping, ie lowest shipping $17.50 regardless item size. Number of buyers dropped dramatically.

-am considering adding extra custom shipping costs to Russian buyers (not tracking), however had many sales, including one for $1500 which more than offsets the minor losses.

-I sell in US$ so the lower $C rate gives me more room to make packages trackable, which I’ve been doing more to new buyers and/or buyers in scary countries

2014 results

 % of shipments = .0051 = 1/2 a % of packages are lost, so about  1 in 200 packages are lost

 % of sales = .0040 = .4% of sales ie less than 1/2 of one percent loss rate

     10 "lost" in 2014 USA(2) Nepal(1) China(2) Brazil(3) Germany(1) Russia (1)

       2 believed to be lost to "crime" (China)

       5 lost and unrecovered(so far) USA(2) Brazil (2) Russia 

       3 repaid (Buyer advised delivery later and repaid: Nepal,Germany,Brazil)

2013 results one half of one percent of sales loss rate:

0.51% "insurance" loss rate (10 unrecovered losses USAx3,Argentina,Chinax3,France,Israel,North Korea)

   0.3% as a result of "crime" (6 shipments)

   0.21% as a result of items lost in the mail (4 shipments)

(Note in 2013 2 packages “lost” and later arrived and Buyers repaid(Brazil, Russia), 1 package loss partially covered by Canada post, no losses covered by 3rd party insurer)

2012 results - under 1% of sales loss rate:

0.83% "insurance": loss rate (unrecovered loss 9 shipments Argentina,Australia,Brazil,Canada,Chinax2,Indonesia,Russia,Turkey)

   0.78% as a result of "crime" (2 shipments)

   0.04% as a result of items lost in the mail (7 shipments)

A reminder that 2012 is the year that CP covered the small packets, I had a few recoveries this way. 

I had a big crime loss within Canada (this was also spelled out in a different thread).

[momcqueen]

Oh, I love your annual analysis.  Thank you. A handful of Items Not Received cases in 2015 put me off Small Packets Airmail for parcels, and everything bigger than an envelope went to Tracked Packet. As a result, only 15 per cent of my product line ships without a trackable service now. 

I went though all of 2016 with no lost parcels (or at least none that weren't ultimately tracked back to tracking somewhere) but had exactly one in 2017 where I used Light Packet on a minifig going to Australia. The destination was a mail consolidator. When the buyer contacted me two weeks later to ask about tracking, he told me to ship his replacement to another address completely. Ebay gave me permission to refund instead. 

It wasn't the loss of goods or dollars that sent me to parcel service with tracking as much as it was the worry, and having to placate the worry of others by answering countless questions from buyers about where there item might be a week later. That, and the final straw was a woman in UK who taunted me about how great it was to get a free toy after her refund was issued to close the INR case.

[cumos55]

The "losses" reported by a seller will depend on the type of inventory being sold.  It is the ... character...  of those that buy stamps  that makes this set of data a reality.

----------------------------------------------

Change the inventory to music CD's  and  we must remember  that seller that could not survive without  tracking.   

This seller was in a northern area of Ontario, and he used postage options without tracking.... and insurance   There were too many scammers willing to say.....  Item not received. 

----------------------------------------------

About 20 % of my sales .... non-fiction books... are shipping lettermail or equivalent without tracking... and insurance.   No problems encountered.... mainly because it is the character of the buyer   and not the fact that a shipping option without insurance and tracking was used.

Each seller must decide what is appropriate  for the inventory they sell.

[reallynicestamps]

I agree about the demographic.

My customers actually read descriptions and like to follow instructions.

Well- books, sewing patterns, philatelists- goes with the territory.

The one that throws me is horse tack. But SIL the barrel races has constant posts on her Facebook about thefts from barns, at shows and rodeos, from shops. And I've noticed the same thing on dotCOM.

The highest rate of criminality is males 15-34. I don't want to sell anything that would be popular with that demographic.

[ricarmic]

The two things I took most note of last year were:

-the significant increase in lost items within Canada. Almost all were lost within the Toronto (northish) area, and I lost almost double the total number lost in the previous 5 years!

-two were lost to regular repeat customers, multiple transactions each year, and multiple successful transactions afterward. The Canadian one never showed up however the Italian one showed up, most ironically I got the note from the fellow while I was posting the original note, and I was able to edit the statistics to include that it was repaid!!!!

[apmtrade]

Ricarmic. Great information.

Canada Post  Postage Stamps insured ???

Postage Stamps + Postcard with Stamps + Cinderella : I am informed by Canada Post items are not insurable. 

Canada Post info:• Terms and Conditions Priority™ Worldwide page 6.J.

Collectors items such as sports cards, souvenirs and memorabilia. (Coins and stamps may not be shipped)

Page 14. 36. Restrictions:• Collectable coins and stamps

[reallynicestamps]

@ricarmic  mentioned that his business insurance is with Hugh Wood International.

We use them too, not only for business, but for DHs personal stamp collection and for our art collection.

They do annual contracts, but cover all parts of a collectibles dealer's business, including shipping.

Also shoptheft, water and fire damage, theft from a car while you have the waffle breakfast at the motel on your way to the show, practically everything.

They specialize in philately and are the insurers for the American Philatelic Society. If you remember the last APS show when the Penny Magenta was last exhibited, they insured the show and all the dealers. http://www.sothebys.com/magenta

They also do other collectibles. They insure both dealers and collectors. And for the money, they are in my opinion, cheaper than generalist insurance companies. They understand how collectibles businesses (and collections) work.

It is also possible to insure one-off packages through shipinsurance (? I've never used them myself) or other non-postal insurers.

And inevitably, I'm going to mention Cookie Jar Insurance, which is basically putting a few pennies aside from every sale as an insurance premium for problems, including ininsurable problems like selling a red sweater and shipping a blue one.

If you are interested, call Gina in their Toronto office.

[ricarmic]

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@apmtrade wrote:

Ricarmic. Great information.

Canada Post  Postage Stamps insured ???

Postage Stamps + Postcard with Stamps + Cinderella : I am informed by Canada Post items are not insurable. 

Canada Post info:• Terms and Conditions Priority™ Worldwide page 6.J.

Collectors items such as sports cards, souvenirs and memorabilia. (Coins and stamps may not be shipped)

Page 14. 36. Restrictions:• Collectable coins and stamps

---

Hi! This is interesting. It has been a couple years since I've had a claim with Canada Post. The last time I did, me and my postmaster had to team up and find the quote in the guide. At that time it clearly stated that stamps were only insurable up to $500. 

I took a moment to check the current insurance restrictions and it looks to still be the same:

(sorry it blocked it all together when I pasted it see the bolded portion)

12.1.2 EXCLUSIONS AND RESTRICTIONS ON CERTAIN ITEMS Notwithstanding anything to the contrary and regardless of whether other Items were included in the shipment: a) Canada Post shall have no liability for loss or damage of shipments containing: • bank notes • stocks • bonds • negotiable premium coupons, or other securities or other instruments, whether financial or legal, that are negotiable by the bearer, coupons (excluding gift certificates) • lottery tickets • trading stamps • travellers’ cheques • liquid and dry patient specimens including biological specimens • cremated remains • organs • animals; or • any unacceptable Item as defined by the Non-Mailable Matter Regulations, as amended from time to time. b) The maximum amount payable by Canada Post is: i $500 for shipments containing: • coins • jewellery • manufactured and non-manufactured precious stones and metals; or • cancelled or uncancelled postage stamps. ii $100 for shipments containing: • gift certificates • gift cards; or • phone cards. c) Canada Post shall have no liability for damage of shipments containing Fragile Items. Fragile Items include but are not limited to ceramic, glass, porcelain, mirrors, crystal, pottery, china, perishable items or items requiring refrigeration or temperature-controlled transportation. d) Canada Post shall have no liability for damage of shipments containing Electronic Goods that are shipped in any packaging other than: • the manufacturer's original packaging, which is undamaged and has retained its intended shape and strength; • packaging that abides by Canada Post's packaging guidelines; or • Canada Post's packaging for the shipment of electronics, including, but not limited to tablets and smartphones. e) Canada Post shall have no liability for loss, delay or damage of Items mailed to destinations outside of Canada containing prescription or non-prescription drugs, or other Items which may be subject to export or import prohibition or restriction. f) Canada Post shall not be held responsible by the Customer and the Customer waives all right of action against Canada Post for any loss or damage arising from, or in connection with, Canada Post’s acceptance of a monetary instrument for or on behalf of the customer that is for any reason dishonoured by the issuer thereof.

[recped]

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@cumos55 wrote:

The "losses" reported by a seller will depend on the type of inventory being sold.  It is the ... character...  of those that buy stamps  that makes this set of data a reality.

----------------------------------------------

Change the inventory to music CD's  and  we must remember  that seller that could not survive without  tracking.   

This seller was in a northern area of Ontario, and he used postage options without tracking.... and insurance   There were too many scammers willing to say.....  Item not received. 

----------------------------------------------

About 20 % of my sales .... non-fiction books... are shipping lettermail or equivalent without tracking... and insurance.   No problems encountered.... mainly because it is the character of the buyer   and not the fact that a shipping option without insurance and tracking was used.

Each seller must decide what is appropriate  for the inventory they sell.

---

Do you sell music CD's? I don't think you do and so I don't know where you are getting the idea that this product line means more INR claims.

I sell CD's and vinyl, my losses for 2017 were ZERO, my losses for 2016 were ONE shipment, my losses historically have been in the 1 in 1000 range and that's with about 60 - 65% percent being shipped overseas and without any tracking.

I remember the CD seller you are referring to, their problems were not related specifically to the type of product they were selling. I tried to advise them of ways they could save a lot of money and shorten their delivery times but they were not interested.

[femmefan1946]

Might be a change in the CD/DVD market too.

I've noticed that the thrifts no longer keep the discs behind the counter and the case on the floor. So I'm guessing that thieves have basically moved on. Everybody is streaming. Whatever that is!

[rehautala]

I recently sold about $475 (Cnd) worth of various stamps/FDCs to one buyer in the US. They seem OK (based on feedback) .

Anyway, based on your experience, what would be the best way to send it? Based on weight, it would cost around $20 Tracked Packet ($100 insurance).

It would cost $33 Expedited with $500 insurance (also tracked).

Also, what should I put on the customs form? (philatelic items?) What do you normally do since you sell a lot to the US?

Thanks

[momcqueen]

With tracking, for sure. Tracked Packet USA from Canada Post tops out at 1 kg. If your parcel is under one kilogram, go with that. It also includes $100 insurance. Whether you choose to supplement that with a third-party insurer is up to you. I wouldn't. Tracking, to me, is all the insurance that I need. 

[rehautala]

Thanks for the reply. I am leaning in that direction. Would also like hear from the OP since I know he does this a lot.

[momcqueen]

Certainly, @ricarmic offers a wealth of experience in this area! 

[ricarmic]

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@rehautala wrote:

I recently sold about $475 (Cnd) worth of various stamps/FDCs to one buyer in the US. They seem OK (based on feedback) .

Anyway, based on your experience, what would be the best way to send it? Based on weight, it would cost around $20 Tracked Packet ($100 insurance).

It would cost $33 Expedited with $500 insurance (also tracked).

Also, what should I put on the customs form? (philatelic items?) What do you normally do since you sell a lot to the US?

Thanks

---

Hi! Sorry for the delay in responding, my wife had me out loading and unloading some furniture!

Moreso for customer service/expectations, I generally track everything over $100 to the USA now. In my case, I also partially do this because it also gives my buyers some nice (current) stamps and souvenir sheets on the boxes I use. 

100% for certain I would track something of $475 size. Sounds like it is heavy enough it has to go expedited, that's all you need, you don't need expresspost because it is not over $850.

I'm in agreement with Momc that I wouldn't probably pay for the extra insurance, however, I use 3rd party insurance which covers this so it is not a worry for me. It depends how much a $375 loss hurts you in the worst case.

The HS code for stamps is 970400  (and FDCs too, everything except postage falls under this HS code). I put on the customs form "1" for quantity, "Postage Stamps (970400)" under description and I have to write the HS code by hand again on the form the postmaster prints for me.

If I missed anything or you have other questions just let me know!

[ricarmic]

Ooops I just noticed that it looks like you have the opportunity to send tracked instead of expedited if you so choose.

I don't recall if one can insure tracked for more than $100 (because I don't care given I use 3rd party for everything over the base insurance amount). If you can't the decision still comes down to whether you want to risk the $375 in the worst case scenario. That would be your deciding factor of tracked vs expedited that case.

[Anonymous]

How do you know their ages??

[rehautala]

Thanks for the reply. Yes, the weight is within Tracked Packet limits.
The Canada Post website says $100 insurance max.
So, you are right. Pay $20 or pay about $33 (for peace of mind). Highly doubt that it would go astray with Tracked. Will mull it over. $13 is not that much extra.

[ricarmic]

From your inventory, I'm making the assumption you have/come across postage, so the difference is $13 less whatever discount you've been able to achieve which makes peace of mind that much less painful.

Depending on how much you send in a year and how you've insured your inventory, it may make a lot of sense to utilize a 3rd party to cover extra insurance. The coverage for the shipments costs me about $50 per year (with a $100 deductible). Note though that the overall policy cost is much larger than this, but the "shipments insurance" aspect is very reasonable.....CP is charging something over $2 per $100 insurance nowadays, it does not take long for that to add up....

[momcqueen]

I won't try to persuade the Original Poster, but I can tell you that I've never lost a parcel that was tracked. Damage in shipment? Well, I'm very careful with packaging. And I've been lucky that nothing of mine has been run over by the mail truck, that hasn't happened either. (Knock on wood.) So I don't bother to add instance over the $100-limit with Tracked Packet. Any loss I might eventually take on that would come from the imaginary cookie jar insurance of money saved by not paying extra for insurance. When I shipped without tracking in the past, I would buy third-party all the time. It adds up. Plus, there's also the added uncertainly of claims being eventually denied because the buyer went radio silent et cetera.