Forum Moderators: buckworks
If a package gets lost, will the carrier pay you the retail cost if you've insured it for that much? Seems like you could end up money ahead on a lost package...
I would give the option to the users to insure the package (for an extra charge, of course), and I would insure it for full retail value. In the rare instance a package arrives damage, the carrier will reimburse the insured value. They'll pay whatever you claimed was the insured value, AFAIK they don't do any sort of auditing of the package value.
what you indicate
Exactly my point. Indicate its full retail value.
Postal service will refund whatever you insured it for. Least hassle of anyone when something goes wrong. If it doesn't show up in 30 days, they consider it lost, and you get paid.
------------
UPS will only refund YOUR cost (which they want you to prove), regardless of how much insurance you bought.
I wasted several thousand dollars overinsuring packages before finding this out, because we made the mistake of insuring our UPS shipments for full price. They "forgot" to tell us that when we set up our account. UPS answered by saying "sorry".
And what possesses them to think they have to right to know the wholesale prices I pay for merchandise?
Forget about getting UPS to ever admit they made a mistake, lost a package, etc. Any claim you make, even if you should win, will cost you many hours, an increase in blood pressure, and several months to collect.
Our new strategy (and it works).....
We insure every UPS package for $99 bucks (which you get 'free', anyway), even if it cost me $300 or $500 or whatever.
Every week, we take the money we WOULD HAVE SPENT on additional insurance, and put it into a seperate account.
When a package is lost or UPS royally screws up, we simply 'eat it', and remove the money from our 'slush fund'.
No more high blood pressure....no more hours spent on the telephone.....no more waiting months to collect....no more ticked off customers.
================
Your mileage may vary, depending on your industry, especially if you are in an industry with a high rate of attempted fraud. (Not a real problem for us)
We simply look at insuring packages just like any other expense, and at our ROI (return on investment).....
For us, it's worked like a charm.
Why does UPS think they have the right to know the wholesale price of my merchandise?
I don't even give that information to my bankers or lawyers...what the h&ll makes UPS think I'll give it to them?
Does this not bother anyone else?
nyone deal with Fedex? How are they to deal with on warranty claims?
We dropped Fedex several months ago and are still waiting for resolution on their last lost shipment.
Anyone else have a differing view?
They both adjust the shipping cost to match the what they billed us for that package. (We have fixed shipping charge for all ground orders.)
IMO, in most cases you're better off charging the customer insurance, but self-insuring your shipments
this is actually illegal in the US. If you want to pad your "shipping and handling" fine, but if you have a separate charge for "insurance" and you don't use third party insurance OR you are not a licensed insurance provider, you are actually breaking the law (being an insurance provider without license)
I would give the option to the users to insure the package
Here's the tricky paty-- charge enough to insure. When you are doing B2C transactions, you make yourself liable for a chargeback. give the customer the option, they do not select it. It gets lost/damaged, you say whoops, you didn't buy insurance. they call credit card issuer and file a chargeback, you have absolutely NO DEFENSE to that chargeback and they win.
