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Shipping Policies - When do you add signature conf. and insurance?

     
4:57 pm on May 25, 2011 (gmt 0)

5+ Year Member



In order to prevent chargebacks I have institued the following policy whenever an order is shipped when it comes to adding signature confirmation and insurance:

If the item is going to a home address that does not contain a unit/apt number:

If the order is over $300 add insurance
If the order is over $400 add insurance AND Signature confirmation

if the item is going to a apartment/unit/business address:

If the order is over $200 add insurance
If the order is over $300 add insurance AND Signature confirmation

So the question is what is your policy when it comes to adding signature confirmation? I recently had a fraud transaction that was for $300, and I didn't have a signature, so I am considering lowering my threshold across the board to require a signature whenever an order is over $300. The only thing is that in the past customers have complained that they don't like the signature confirmation since they are not home during the day and then have to go and pick it up from the post office.

What do you think about the balance between protecting one business and ensuring customer satisfaction? Luckily I have not had much fraud in the past, but every time it happens it frustrates me so much.
6:25 pm on May 25, 2011 (gmt 0)

5+ Year Member



If you ever have a charge back for item not received over $250 you will lose

over $250 Signature is required
6:52 pm on May 25, 2011 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



+1 to the $250 requirement.

As far as Insurance, we never purchase additional shipping insurance from either the carrier or U-PIC. The customer could care less about your insurance, and the carrier will give you nothing but hassles. Much better to self-insure, meaning estimate breakage and loss, and work it into your shipping costs.
8:24 pm on May 25, 2011 (gmt 0)

5+ Year Member



As far as Insurance, we never purchase additional shipping insurance from either the carrier or U-PIC. The customer could care less about your insurance, and the carrier will give you nothing but hassles. Much better to self-insure, meaning estimate breakage and loss, and work it into your shipping costs.


We self insure except if

Item markup is to low

High order value

Going to places where there is a high percentage it will get lost (multi unit buildings)

Orders we suspect friendly chargbacks fraud

When the Ups driver come down or the insurance company calls to verify usually the story changes
5:45 pm on May 29, 2011 (gmt 0)

WebmasterWorld Senior Member 5+ Year Member



"Much better to self-insure, meaning estimate breakage and loss, and work it into your shipping costs." = i concur!

the loopholes and hassles and time sux on getting reimbursed are usually not worth it. imo, if the items or orders are over ~$850 on average, you cross back into the territory where you need experience to judge whether insurance or self-insure is better - your insurer and carriers determine which is better on those high rangers.
 

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