Forum Moderators: buckworks
I'm not concerned (for this discussion anyway) about insuring vs. not insuring the packages, but rather, how you deal with the customers - do you replace their lost merchandise immediately, or wait until the shipper pays a lost item claim (if it was insured), or do you tell the customer it's not your problem once the shipper takes posession and that they'll have to take it up with the shipper?
In my business, I pay all shipping costs to the customer. Some shipments are insured (big ticket items that go by UPS), but most are not, because they go by USPS and it's ridiculously expensive to insure a package. (UPS has managed to lose two packages in the last month, while the USPS has handled about 1000 in the last 6 months without a single hiccup.)
Anyway, on the first lost UPS package, I sent out a replacement to the customer the next day, and UPS never did manage to find the package (and they never paid a claim because of a screwup on my part). On this second package, however, I have a feeling it might turn up in a day or two once the UPS driver goes out and shows them where he hid th package -- and it would be an incredible hassle to go through the process of shipping a replacement right now, only to have to get it returned in a few days. Not to mention the potential difficulty of actually getting the customer to send the replacement package back at all.
Our problem is when neighbors accept packages. For some reasons, we've had 5 or 6 disappear on UPS when left at the neighbors.
We include with the replacement a return services label, in case the package turns up. It doesn't cost anything until the customer uses it.
My horror story is US Postal Service with 40 lb package to Ireland. Got caught in customs because they claimed there was no invoice with it. Never notified us and disposed of it. We ate the cost.
jb
International shipments I get a proof of posting they are not insured go missing - tough I can prove I sent it. Thats all I need under UK law.
If in the case of something not arriving, or arriving broke, I just issue a refund or replacement depending on what suits the customer best. Returns, replacements and refunds is a touchy issue - you've got to play your cards right as nothing spreads faster than a reputation for crap customer care. IMO it's best to take a short term hit when issuing a refund or replacement and maintaining a good image, rather than looking like an incompetent, impersonal, money-grabbing company.
I only use postal services these days, unless specifically requested by courier. I find they break/lose a lot less.
However, if you are relying on the built in tracking/insurance you might want to read the fine print. ie, it takes 3 months for an international parcel to be declared lost. On internal postage, they only pay the cost of goods,not retail price, so if its a low value item that I imported and may have been on the shelf for a while, its a big hassle to find the original invoice, the exchange rate etc, and the forms are a nightmare, its usually cheaper just to write it off than spend the time. Same goes for broken/damaged. My stuff is all fragile and I pack well. Never had a claim accepted tho. You have to get it returned in the original packing, then book a postal inspection. They take one look and say "inadequately packed." Seems if it breaks it was inadequately packed. Even when the tyre marks were still visible on the package.
On international stuff, put an invoice on the outside of the box, and another on top inside, send another to the customer seperately by post and/or fax. On the customs dec there is a couple of boxes to tick if unclaimed, one says "return to sender at senders cost" or words to that effect, while the other is "abandon". Make sure there is no prohibited stuff in the box, like raw animal products (feathers, seashells etc.) Even the wrong packing materials can get your parcel pulled for AG inspection.
