Paypal Buyer protection

My normal practice is to charge for postal insurance. I have noticed when item is paid for with Paypal it comes up as Eligible for Buyer Protection. As I understand this any item that either doesn't arrive or is damaged in transit entitles the buyer to a refund for the cost of the item as well as postage (provided it complies with some conditions). Have any sellers had any experience with this and I suppose more importantly is it necessary to purchase extra insurance from a postal carrier if it is already covered by Paypal?

Comments

  • 3 Comments sorted by Votes Date Added
  • If PayPal reimburse the buyer they take the money from you. The two scenarios are (1) the buyer's order didn't arrive, or it arrived damaged. (2) the order arrived but the buyer claims it is not as you described it, and PayPal agrees. Postal insurance may reimburse you for (1).

    As you know, PayPal protects the buyer whether or not you purchase insurance. Buyers know this, so passing on the cost of insurance may result in fewer orders and a slower turnover of stock. It's therefore a personal choice whether to pass it on or pay it yourself.

    Some sellers purchase an annual insurance policy which covers all their outgoing orders, while others choose only to buy insurance for certain orders (high value, or to countries with known problems, etc.).

    Of course many sellers have suffered losses due to PayPal's buyer protection policies. Most consider it a business expense like a normal store might treat losses suffered to shoplifting.

    You have to remember that even where they pay by another method, you may be obligated in law to reimburse them if things go wrong - it depends on your country's laws.
  • Thanks for your comments Hoddie. I think I'll continue to charge for postal insurance but like everything the devil is in the detail.
  • We were the recipients of a Very Cool discontinued set here in the States that BRCook had the opportunity to list and sell us from Australia shipped to US. So glad we ordered this and wished we had the foresight he seems to have on what may be hot and unavailable in the future...
    Long story short, this set arrived in the most clean pristine manner possible- We only WISH our domestic ships from WalMart, Amazon, Lands End, Kohl's or any other you could name would arrive in this amazing condition.
    Don't know what the Australian post overseas shipping is doing right, but this is the second from Down Under that has come unscathed!
    Yes, insurance for you the seller in the future, but meanwhile, your Postal is top notch in the handling and delivery department!
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